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 correctbecause raising money for a startup involves the sale of securities and must be reported as a private securities transaction.
Ais incorrect because soliciting charitable donations does not involve securities.
Cis incorrect because selling term life insurance policies is not a securities transaction.
Dis incorrect because investing personal money does not involve soliciting or selling securities to others.
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