Series 63 practice questionhardInstitutional Transaction—Antifraud
Which statement best describes the application of antifraud provisions to exempt institutional transactions under the USA?
- AAntifraud provisions do not apply if the transaction is exempt
- BAntifraud provisions apply even if the transaction is exempt✓ Correct answer
- CAntifraud provisions apply only if the Administrator revokes the exemption
- DAntifraud provisions apply only to private placements
Explanation
Why B — Antifraud provisions apply even if the transaction is exempt
Antifraud rules always apply to any securities transaction, even if the transaction or security is otherwise exempt (USA Section 403).
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