Exempt Security

Definition - What does Exempt Security mean?

Exempt Security is a security that is exempt from the registration requirements of The Securities Act of 1933.

Testopedia explains Exempt Security

The Securities Act of 1933 requires issuers to file a registration statement with the SEC to ensure that adequate information regarding the issuer of securities is available to investors and that the government has had an opportunity to review the information. Certain issuers are exempt from this registration process and are therefore known as exempt issuers. Exempt issuers include the Federal Government and state and municipal governments.

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