Series 63 practice questioneasyExempt Transactions — Isolated Non-Issuer Transactions
During a registration workshop, the instructor adds this setup first. Assume the administrator is testing the cleanest state-law answer. Under the Uniform Securities Act, an isolated non-issuer transaction is:
- AA transaction where the issuer sells shares directly to the public
- BAn occasional transaction by a person who is not the issuer, an underwriter, or a dealer✓ Correct answer
- CA transaction involving a new issue of securities
- DA transaction executed on a national securities exchange
Explanation
Why B — An occasional transaction by a person who is not the issuer, an underwriter, or a dealer
Under USA Section 402(b), isolated non-issuer transactions are exempt from registration. These are secondary market transactions that occur infrequently and do not involve the issuer, an underwriter, or a dealer. The key elements are that the transaction is isolated (not part of repeated or successive transactions) and the seller is not the issuer. This version tests the same concept with a different fact pattern wrapper.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 646+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Regulation of Securities & Issuers questions
- For a licensing checkpoint quiz, treat the following as the opening fact pattern. Assume the administrator is testing…
- On a final review set, the question is presented in this context. Assume the administrator is testing the cleanest…
- In a state-administrator case study, the scenario starts here. Assume the administrator is testing the cleanest…
- In a remedial practice session, the fact pattern is framed this way. Assume the administrator is testing the cleanest…