Series 63 practice questionmediumAgent Status—Exempt Securities vs. Exempt Transactions
Which of the following scenarios would MOST LIKELY require agent registration under the USA?
- AAn employee of a broker-dealer selling U.S. Treasury bonds to retail clients.✓ Correct answer
- BAn employee of an issuer selling commercial paper to institutional investors.
- CAn employee of a municipality selling its municipal bonds on behalf of the issuer
- DAn employee of an issuer selling securities in an exempt private placement, for which she receives a bonus.
Explanation
Why A — An employee of a broker-dealer selling U.S. Treasury bonds to retail clients.
An employee of a broker-dealer effecting securities transactions for retail clients generally must register as an agent even when the security, such as a U.S. Treasury bond, is exempt. The other choices describe issuer representatives in exempt securities or exempt transactions.
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