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Question 13: To say a security is "exempt," means that
I. it is exempt from the state's anti-fraud laws.
II. it is exempt from state registration requirements.
III. any transaction involving it is considered to be an exempt transaction.
A. I, II, and III
B. I and II only
C. II and III only
D. II only
Correct Answer: D
Explanation: To say a security is "exempt" means only that the security is exempt from state
registration
requirements. It is not exempt from the state's anti-fraud laws and may or may not be part of an
exempt
transaction. That is defined by the transaction.
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