Series 63 practice questionmediumReg D—Accredited Investors
Under Regulation D, which of the following investors could be counted as an institutional investor and not toward the 10-person retail limit under the USA private placement exemption?
- AA corporation with net assets of $1 million
- BA married couple with $2 million in investable assets
- CA state-chartered bank✓ Correct answer
- DA trust with $1 million in assets and no professional management
Explanation
Why C — A state-chartered bank
Banks and similar financial institutions are considered institutional investors (USA 402(b)(8)), and do not count toward the 10-person retail investor limit. The other choices, even if wealthy, are not institutions for exemption purposes.
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
- What is the primary purpose of the preorganization subscription exemption in the Uniform Securities Act?
- Which of the following best describes the private placement exemption under the USA?
- A state Administrator issues a stop order against an issuer's registration statement after discovering that the…
- Which of the following is a requirement for a transaction to qualify for the private placement exemption under the USA?
- Which of the following actions can a state Administrator take regarding a Regulation D offering in their state?
- Which of the following is true regarding the Administrator's authority over exempt transactions under the USA?
- A State X registered agent emails a private placement offer to a list of 15 non-institutional prospects obtained from a…
- An executor of an estate sells shares of a company as part of the estate settlement process. Under the USA, this…