Series 63 practice questioneasyFiduciary Transactions
A trustee is selling shares from a trust's portfolio to settle the estate of a deceased client. Under the Uniform Securities Act, this transaction is BEST described as:
- AA non-exempt transaction requiring registration
- BAn exempt transaction because it is by a fiduciary✓ Correct answer
- CA non-exempt transaction because it involves securities
- DA broker-dealer transaction requiring notice filing
Explanation
Why B — An exempt transaction because it is by a fiduciary
Transactions by fiduciaries such as trustees are exempt under USA Section 402(b)(3). Option B is correct. The other options fail to recognize the fiduciary exemption.
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