Series 79: Exceptions

Exceptions

Rule 101 offers a major exemption for actively traded securities, defined as securities with an ADTV of at least $1 million that are issued by an entity with a minimum $150 million public float of common stock. Investment grade nonconvertible and asset-backed securities are also excepted. Distribution participants can buy these securities at will.

Rule 101 contains several other exceptions, including:

• • De minimis transactions that total less than 2% of the ADTV of the security being purchased
• • Transactions among distribution participants in connection with a distribution
• • The publication or distribution of research or recommendations, if otherwise permitted by law
• • Odd-lot transactions
• • Exercises of options, warrants, ri