A broker-dealer participates in a private placement in State Z, selling to seven non-institutional clients and one institutional client over a 12-month period. The BD receives commissions on all sales. Which is MOST accurate?

1. AThe offering is exempt for both types of clients.
2. BIt is exempt for the institutional client only; commissions disqualify the exemption for retail clients.✓ Correct answer
3. CNo exemption applies because commissions are paid.
4. DIt's exempt for retail clients only, not for the institutional client.

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

• A Canadian broker-dealer, properly exempt in State Y, has a client who was a Canadian resident but moved to State Y six…
• All of the following are TRUE regarding the snowbird exemption and the Canadian broker-dealer exemption under the USA…
• A broker-dealer completes two separate limited offerings in State V during a calendar year: one to eight individuals in…
• Sarah works as a receptionist at a broker-dealer firm. She answers phones, greets visitors, and occasionally tells…
• Which of the following scenarios would NOT qualify for the snowbird exemption for broker-dealers under the USA?
• Which of the following is NOT a requirement for a Canadian broker-dealer to rely on the Canadian BD exemption under the…
• In a state that has adopted NASAA's Canadian broker-dealer model rule, a Canadian broker-dealer wants to service an…
• A broker-dealer sells an unregistered security to eight non-institutional investors in a state within a 12-month…