What Is Exempt Transaction?
A securities transaction that does not require registration of the security itself, such as an isolated non-issuer transaction or a private placement to a limited number of offerees. The exemption applies to the transaction, not necessarily to the security involved.
Exempt Transaction across 3 exams
Exempt Transaction appears on the following exams. Each defines it in the context candidates are tested on:
- Series 65
- A securities transaction that does not require registration of the security itself, such as an isolated non-issuer transaction or a private placement to a limited number of offerees. The exemption applies to the transaction, not necessarily to the security involved.
- Series 63
- A securities transaction that is not subject to registration or advertising-filing requirements because of the manner in which it occurs or the parties involved, such as certain private or institutional sales.
- Series 66
- A securities transaction that is excused from state registration requirements because of the nature of the transaction itself, such as an isolated non-issuer transaction or a transaction with an institutional investor. The security involved may still otherwise require registration in other contexts.