Series 63 practice questionmediumInstitutional buyer – broker-dealer as purchaser
Which of the following entities is LEAST likely to qualify as an institutional investor eligible for exempt transactions under the USA?
- AA broker-dealer buying for its own account
- BAn individual accredited investor✓ Correct answer
- CA bank acting for a trust
- DAn insurance company purchasing for its general account
Explanation
Why B — An individual accredited investor
Accredited individuals are not necessarily institutional investors under the USA. Broker-dealers, banks, and insurance companies qualify (USA 401(f)).
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