Definition of Exempt Transaction

Exempt Transaction is a transaction where the securities that are being exchanged are not subject to state registration.

Applying "Exempt Transaction" to Securities Exams:

An exempt transaction is a transaction in a security that would, under ordinary circumstances, need state level registration. But, because of the unique way it is being transacted, the securities do not need to be registered at the state level. Some examples of exempt transactions are: transactions conducted by fiduciaries; unsolicited orders; transactions in mortgage backed securities; private placements (Reg D offerings) and isolated non-issuer transactions.

Preparing for an Exam?

Receive 15% off all your Securities Exam Prep materials

Please wait....

Your Cart