Series 7 Exam Question 173: Answer and Explanation

Question: 173

Which of the following are exempt transactions?

I. Securities issued by the U.S. government

II. Securities issued by banks

III. Intrastate offerings

IV. Regulation A offerings

• A. I and IV
• B. III and IV
• C. I, II, and III
• D. I, II, III, and IV

Correct Answer: B

Explanation:

B. Remember, there's a difference between exempt securities and exempt transactions. Exempt transactions include intrastate offerings, Regulation D offerings, and Regulation A offerings. There are other securities that are exempt from registration based on who's issuing the securities. Exempt securities include: U.S. government securities, municipal bonds, securities issued by banks, public utility stocks or bonds, and so on.