Series 63 practice questionmediumPrivate Placement—Resale Restrictions
Which of the following is a requirement for a transaction to qualify for the private placement exemption under the USA?
- ASecurities purchased may be freely resold without restriction
- BSecurities purchased are subject to resale restrictions✓ Correct answer
- CSecurities may be advertised to the public
- DSales commissions are paid to agents for all sales
Explanation
Why B — Securities purchased are subject to resale restrictions
Private placements must impose resale restrictions to prevent public distribution (USA 402(b)(9)). Public advertising or unrestricted resale would void the exemption.
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