DEFINITION of 'Exempt Transaction'

A type of securities transaction where a business does not need to file registrations with any regulatory bodies, provided the number of securities involved is relatively minor compared to the scope of the issuer's operations and that no new securities are being issued.

BREAKING DOWN 'Exempt Transaction'

Exempt transactions cut down the amount of paperwork needed for relatively minor transactions. For example, it would be a big hassle to perform a filing with the SEC every time a non-executive employee wanted to sell back some of the company's common shares he or she purchased as part of an employee stock purchase plan.

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  3. SEC Form 8-B12G

    A filing with the Securities and Exchange Commission (SEC) concerning ...
  4. Exchangeable Security

    An investment instrument that grants its holder the right to ...
  5. SEC Form CB

    A filing with the Securities and Exchange Commission (SEC) required ...
  6. Opening Transaction

    The act of initiating a trade. An opening transaction is the ...
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  1. According to the USA, it is unlawful for a person to offer to sell a security in ...

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  3. The “effective date” is defined as:

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  4. What are unregistered securities or stocks?

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