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  • Exam Code: H13-221_V1.0
  • Exam Name: HCIP-Intelligent Computing V1.0
  • Version: V15.95
  • Q & A: 258 Questions and Answers

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Which of the following describes an "exempt security," as defined by the Uniform Securities Act (USA)?
A. An exempt security is any security that is being sold by an institutional investor, such as a bank, to another institutional investor, such as another bank or an insurance company.
B. An exempt security is any security being sold as a private placement.
C. An exempt security is any security that is being sold in an isolated non-issuer transaction.
D. An exempt security is one that need not be registered in the state in which it is sold.
Answer: D
Explanation: As defined by the Uniform Securities Act, an exempt security is one that need not be registered in the state in which it is sold. Selections A and D describe exempt transactions. Although securities issued by financial institutions, such as banks, are exempt securities, not all securities that a bank purchases and sells qualify as exempt securities. Private placements may also be exempt transactions, but there are other stipulations that must be met.

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