A broker-dealer sells an unregistered security to eight non-institutional investors in a state within a 12-month period, with no commissions paid. All investors are known personal acquaintances. Does this transaction qualify for a limited offering exemption under the USA?

1. AYes, because the offering is limited to 10 or fewer non-institutional investors.✓ Correct answer
2. BNo, because personal acquaintance is not a factor.
3. CNo, because more than five investors are involved.
4. DYes, but only if all investors sign a suitability statement.

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