SIE Exam Question 352: Answer and Explanation

Question: 352

As part of Rule 144A, the SEC created another category of financially sophisticated investors known as

• A. sophisticated wealthy individuals.
• B. accredited investors.
• C. qualified asset managers.
• D. qualified institutional buyers.

Correct Answer: D

Explanation:

D - QIBs generally are institutions or other entities that, in aggregate, own and invest (on a discretionary basis) at least $100 million in securities. Under Rule 144A, QIBs can freely trade private placements among themselves.