Exempt Transactions
Transactions that need no registration of the security, whatever the security.
What is Exempt Transactions?
Include isolated nonissuer transactions, unsolicited nonissuer orders through a broker-dealer, sales to institutional investors (banks, insurance companies, investment companies, broker-dealers, large pension plans), private placements (no more than 10 non-institutional offerees in the state in 12 months, buyers purchasing for investment, no commission for soliciting them), transactions by fiduciaries such as executors, trustees in bankruptcy and guardians, and bona fide pledges.
Exempt Transactions: a worked example
An executor selling a decedent's unregistered stock to settle the estate is an exempt transaction.
More terms in Uniform Securities Act & Registration
Uniform Securities Act (USA)
The model state securities law most states' 'blue sky' statutes are based on.
State Securities Administrator
The official or agency that enforces a state's securities act.
Person (USA Definition)
Anyone who can be held legally responsible - individuals and organizations.
Investment Adviser (USA Definition)
Advises on securities, as a business, for compensation.
Excluded from the Investment Adviser Definition
Banks, incidental professionals, broker-dealers, and publishers are not advisers at all.
Exemptions from State Adviser Registration
An adviser with no office in the state and only institutional or very few clients there.
De Minimis Exemption
No place of business in the state and fewer than 6 clients there in 12 months.
Federal Covered Adviser
An adviser registered with the SEC rather than the states.
All Uniform Securities Act & Registration terms · Full glossary