Question 1

Are there exemptions from the general requirement that all securities offerings must be registered under the Uniform Securities Act (USA)?

Accepted Answer

Yes. ``` Under the USA, there are exemptions for certain Securities and Transactions. Ch 02(4) ```

Question 2

What are exempt securities and transactions exempt from?

Accepted Answer

Exempt or Federal Covered Securities are ONLY exempt from STATE registration -and- ``` the filing of Advertising & Sales Literature. Ch 02(4) ```

Question 3

What are exempt securities and transactions still subject to?

Accepted Answer

All securities are subject to anti-fraud provisions. ALL securities, ALL transactions are subject to anti-fraud provisions of Federal Securities Law. Ch 02(4)

Question 4

What are Exempt Securities?

Accepted Answer

Exempt securities are securities issued by well-known, very credit worthy issuers, such as governments, financial institutions, and some blue chip companies They ARE EXEMPT from state registration and advertising filing requirements ``` (we’re generally talking about new issues). Ch 02(4) ```

Question 5

Exempt Securities Include:

Accepted Answer

1) . U.S. Government securities 2) . Municipal securities 3) . Canadian 4) . U.S. Banks / Trust -- BUT securities issued by Bank Holding Companies, which may be owned by banks, would NOT be exempt. 5) . Federal Savings / Loan Association. 6) . Credit Unions 7) . Insurance Companies 8) . Stock Exchange Listed -- because Federal Covered. 9) . Non-Profit Issues 10) . Promissory Notes 11). Public Utility and Common Carrier Companies 12). Investment Contracts Ch 02(4)

Question 6

Exempt Securities -- What are U.S. Government securities?

Accepted Answer

T-Bonds, Notes, Bills U.S. Government Agency issues Ch 02(4)

Question 7

Exempt Securities -- What are Municipal securities?

Accepted Answer

Issued by State / Local Government / Transit Authorities GO and Revenue Bonds Ch 02(4)

Question 8

Exempt Securities -- What are Canadian securities?

Accepted Answer

Issued or guaranteed by Canada or Canadian provinces Does not include securities listed on a Canadian Stock Exchange, or securities issued by Canadian companies— including Canadian insurance companies. ``` Securities listed on a Canadian exchange, or issued by a Canadian insurance company would not be included in the exemption. Ch 02(4) ```

Question 9

Exempt Securities -- What are U.S. Banks / Trust securities?

Accepted Answer

U.S. Banks, Savings Institutions, or Trust Companies organized under state laws. BUT securities issued by Bank Holding Companies, which may be owned by banks, would NOT be exempt. Make that distinction: Securities issued by banks are exempt. Holding companies, which may own banks, would not be exempt. Ch 02(4)

Question 10

Exempt Securities -- What are Federal Savings / Loan Association securities?

Accepted Answer

``` Issued by building and loan or similar association organized under state laws. Ch 02(4) ```

Question 11

Exempt Securities -- What are Credit Union securities?

Accepted Answer

``` Issued by Credit Unions, whether they are Federal or State chartered. Ch 02(4) ```

Question 12

Exempt Securities -- What are Insurance Company securities?

Accepted Answer

Issued by Ins Co's Applies to U.S. Insurance Companies only. Back in #3, Canadian insurance companies would NOT be exempt. Ch 02(4)

Question 13

Exempt Securities -- What are Stock Exchange Listed securities?

Accepted Answer

Any security listed on a stock exchange NYSE / NASDAQ are exempt from state registration — because they are Federal Covered. Registered at the Federal Level. Ch 02(4)

Question 14

Exempt Securities -- Stock Exchange Listed What other securities issued by companies with common stock listed on an exchange or NASDAQ may be exempt from state registration?

Accepted Answer

Companies with common stock listed on an exchange or NASDAQ can issue other securities which are senior or substantially equal in rank, and obtain an exemption for these securities due to the listing of common stock on a registered exchange. This exemption COULD include: Secured Bonds — whether convertible or non-convertible (e.g. mortgage and equipment related debt) Unsecured bonds — convertible and nonconvertible (e. g. debentures) Preferred stock — convertible and nonconvertible ``` These securities may be exempt from full state registration, but issuers may be required to perform a Notice Filing in the states where the securities are sold. Ch 02(4) ```

Question 15

Exempt Securities -- What are non-profit issues?

Accepted Answer

Issued by Charitable / Educational organizations Chamber of Commerce or Trade Associations Includes things like Church Bond Issues Ch 02(4)

Ch 02(4) USA Exempt Securities and Transactions Flashcards

Describe Exempt Securities and Exempt Transactions.

Brainscape's Knowledge GenomeTM

Ch 02(4) USA Exempt Securities and Transactions Flashcards

Describe Exempt Securities and Exempt Transactions.

Brainscape's Knowledge Genome^TM