Lucky the Banker mascotLTB
Series 63: Regulation of Securities & Issuers
Series 63 practice questionhardPrivate Placement—General Solicitation

A State X registered agent emails a private placement offer to a list of 15 non-institutional prospects obtained from a trade show attendee list. Under the USA, this transaction is:

  1. AExempt because no commissions are paid to agents
  2. BNot exempt, because the offer was made to more than 10 non-institutional investors✓ Correct answer
  3. CExempt because trade show attendees are considered institutional investors
  4. DExempt if fewer than 10 offerees accept the offer
Explanation

Why BNot exempt, because the offer was made to more than 10 non-institutional investors

The exemption is based on the number of offers made to non-institutional investors (not sales), and the limit is 10 (USA 402(b)(9)). The use of a trade show list does not change the nature of offerees.

Turn it into reps

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.

Spot an error in this question or explanation? Tell us — we fix these fast.

Related Regulation of Securities & Issuers questions