Question

The president of XYZ Corporation owns restricted stock. Under security industry regulations, the restricted shares could be sold in all of the following transactions EXCEPT: (A) A 144 offering. (B) A private placement. (C) A registered offering. (D) An exchange offering.

Answer 1

Answer:

(D) An exchange offering.

Explanation:

You cannot sell stocks in the exchange offering because in exchange offering there is a swap of security with different security which also has the value and does not constitute a "sale". and  different value.

You can sell stocks in 144 offering, A private placement  and a registered offering.

Hence the answer is option d.

Answer 2

Answer:

Under security industry regulations, the restricted shares cannot be sold in exchange offering

Explanation:

The stock can't be "sold" through a bond because an exchange trades security with value for another protection that also has value and does not constitute a "sale,"

 An exchange offer is a type of stock offering in finance, corporate law and securities law in which securities are provided as a consideration rather than cash

in exchange offer a company offers to provide one protection, including a bond or preferred stock, in return for another protection, such as preferred stock shares.