Securities RegistrationQuestion 47 of 100
Which of the following is an exempt transaction under the Uniform Securities Act?
a.A registered agent recommending a growth stock to a retail client
b.A sale of securities by a court-appointed executor settling a decedent's estate
c.An issuer's advertised public offering of common stock
d.A mutual fund's continuous offering to the general public
Explanation
Transactions executed by fiduciaries such as executors, administrators, sheriffs, marshals, receivers, trustees in bankruptcy, guardians, and conservators are enumerated exempt transactions because they arise from a legal duty rather than a sales effort. A recommended retail trade is ordinary solicited business. Advertised public offerings and continuous mutual fund offerings are the opposite of isolated or private transactions, though fund shares may escape state registration as federal covered securities, which is a different exemption entirely.
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Related questions on this topic
- Under the private placement exemption in the Uniform Securities Act, an issuer may make offers to no more than a limited number of non-institutional persons in any twelve-month period. Which additional condition applies?
- Which of the following is NOT an exempt security under the Uniform Securities Act?
- A church issues bonds to finance construction of a new fellowship hall and sells them to members of the congregation. Under the Uniform Securities Act, these bonds are:
- In an administrative proceeding, a party claims that an offering qualified for an exemption from registration. Which statement is correct?
- A seller relies on a valid exempt transaction and therefore does not register the securities. Which statement is correct?
- Which statement about a state securities registration statement is correct?
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