Exempt Transactions

Question 1

Non-Issuer Transactions are:

Answer 1

Secondary market trades:
* Key words: isolated, non-recurring, or unsolicited trades
* Trades in securities subject to ’34 Act (reporting companies)
* Trades in securities listed on the Toronto Stock Exchange

Question 2

Private Placements are:

Answer 2

• Limited to no more than 10 non-institutional investors
• Purchases must be made for investment purposes only
• No commission paid for soliciting non-institutional investors

Question 3

Institutional Transactions are:

Answer 3

Those with banks, B/Ds, or other financial institutions; insurance, trust, or investment companies; between issuer and underwriter

Question 4

Fiduciary transactions are:

Answer 4

Those involving a trustee, administrator, executor, or sheriff

Question 5

Mortgage-Backed are:

Answer 5

Transactions in bonds that are secured by real estate mortgages (if sold as a unit).