Series 63 practice questioneasyExempt Transactions — Isolated Non-Issuer Transactions
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.
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