Series 63 practice questioneasyExempt Securities - Isolated Non-issuer Transactions
Which of the following transactions is most likely exempt under the USA's isolated non-issuer transaction exemption?
- AA one-time sale of stock by a private individual to another individual with no regular business of trading securities✓ Correct answer
- BA broker-dealer offering shares to the public
- CA registered investment adviser selling shares to clients
- DA corporation selling its own stock in a public offering
Explanation
Why A — A one-time sale of stock by a private individual to another individual with no regular business of trading securities
Isolated non-issuer transactions (USA Section 402(b)(1)) generally involve private, non-recurring sales by individuals not in the business of trading. Public offerings and regular sales by professionals are not exempt under this provision.
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