68. Which of the following activities engaged in by a registered person is considered a private securities transaction?
Answer: B
Helping a friend raise money for a startup company they founded is considered a private securities transaction.
This activity involves a registered person engaging in the sale of securities outside of their regular employment, which aligns with the definition of a private securities transaction.
A) Soliciting donations to a charity
This option is incorrect because soliciting donations does not involve the sale of securities or any financial transaction related to investments. It pertains to charitable contributions rather than private securities activities.
B) Helping a friend raise money for a startup company they founded
This is the correct option as it involves a registered person facilitating the sale of securities to others outside their employment context, qualifying it as a private securities transaction. This activity directly relates to the raising of capital for a business venture, which is a key characteristic of such transactions.
C) Working for an insurance company selling term life insurance policies
This option is incorrect since selling insurance policies does not involve securities transactions. Insurance products are regulated separately from securities, and this activity does not fall under the definition of a private securities transaction.
D) Investing personal money in shares of a listed security in a brokerage account
This choice is also incorrect because investing personal funds in publicly traded securities is a standard investment activity and does not constitute a private securities transaction. It involves a personal investment decision rather than a transaction conducted on behalf of others.
Conclusion
The correct answer, helping a friend raise money for a startup company, is clearly a private securities transaction as it involves the sale of securities outside the scope of the registered person's employment. All other options either do not involve securities or pertain to activities that do not meet the criteria for private securities transactions, thus making them incorrect.