What is an exempt issue in securities?

• A. A type of investment fund
• B. A securities issue for which a prospectus is not required
• C. A document detailing a company's financial condition
• D. A security that can be publicly traded immediately

Answer: (B)

An exempt issue in securities refers to a securities offering that does not require a prospectus under certain regulatory frameworks. This exemption typically applies to specific categories of securities offerings that the regulatory authority identifies as not posing a significant risk to investors or where public disclosure is not as critical. For instance, such exemptions can include private placements or certain offerings to accredited investors.

By not requiring a prospectus, which is a detailed document that provides information about an investment offering, exempt issues streamline the capital-raising process for issuers and reduce the burdens of regulatory compliance. This allows businesses, particularly smaller companies or startups, to access capital more easily.

The other choices do not accurately describe exempt issues. Investment funds, company financial details, and publicly traded securities can have different regulatory requirements and implications that do not pertain directly to the concept of being exempt from the prospectus requirement.