Series 63 practice questioneasyInstitutional Buyer Transactions
Which of the following is an example of an exempt transaction under the Uniform Securities Act?
- AA sale of securities by a broker-dealer to an individual investor
- BA sale of securities to an insurance company✓ Correct answer
- CA sale of securities to an agent's relative
- DA sale of securities by an issuer to its employees
Explanation
Why B — A sale of securities to an insurance company
Sales to institutional buyers (like insurance companies) are specifically exempt under USA Section 402(b)(8). The other options do not qualify as exempt transactions under this rule.
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