SIE practice questioneasyRegulation D
Under Regulation D, what is a defining characteristic of a private placement?
- AIt involves securities traded only on exchanges.
- BIt is an exempt transaction, not requiring SEC registration.✓ Correct answer
- CIt must be offered to the general public.
- DIt involves only government-issued securities.
Explanation
Why B — It is an exempt transaction, not requiring SEC registration.
Regulation D provides an exemption from SEC registration for private placements. B, C, and D are not defining features of private placements.
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