A private securities transaction involves the sale of securities outside the scope of a registered representative’s employment with their member firm. Such transactions must be disclosed to and approved by the firm under FINRA Rule 3280.
B is correct because raising money for a startup involves the sale of securities and must be reported as a private securities transaction.
A is incorrect because soliciting charitable donations does not involve securities.
C is incorrect because selling term life insurance policies is not a securities transaction.
D is incorrect because investing personal money does not involve soliciting or selling securities to others.
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit