Series 63 practice questionmediumInstitutional exemptions
Under the USA, which is an example of an institutional investor for exemption purposes?
- AA wealthy individual
- BA registered investment company✓ Correct answer
- CA family trust
- DA sole proprietorship
Explanation
Why B — A registered investment company
Registered investment companies are considered institutional investors (USA 401(b)(2)). Individuals (A), family trusts (C), and sole proprietorships (D) are not institutional for exemption purposes.
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