Series 7 Exam Question 9: Answer and Explanation

Question: 9

According to the Securities Act of 1933, sales of which of the following is an exempt transaction?

• A. U.S. government note
• B. Security issued by a bank
• C. Regulation S offering
• D. Municipal bond

Correct Answer: C

Explanation:

C. Exempt transactions include Rule 147 offerings, Regulation A, Regulation D, and Regulation S. All of the other choices listed are considered exempt securities, which are securities exempt from registration based on the type of security, not the type of transaction.