SIE practice questionmediumSecurities Act of 1933
Which of the following is considered an exempt transaction under the Securities Act of 1933?
- APrivate placement meeting the requirements of Regulation D✓ Correct answer
- BSale of common stock in an IPO
- CSale of a mutual fund to the public
- DSecondary market trade on an exchange
Explanation
Why A — Private placement meeting the requirements of Regulation D
Reg D offerings are exempt transactions. IPOs and mutual funds must be registered, and secondary market trades are not covered by the 1933 Act.
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