Short Swing Profit quiz question

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[H6GB8] An affiliate of an issuer makes a profit on a sale of ... | Achievable SIE…

One of the final exams had the question linked above. In the answer explanation, it reads: “However, it is clear the stock is publicly traded, so it’s a safe assumption it is registered and non-restricted. Only restricted stocks can trade in the public markets.”

Is that last sentence correct, or is it a typo? It seems to contradict the prior sentence (and my understanding of restricted stock). If it’s correct, can someone explain? Are public markets different than exchanges?

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Hi, I appreciate you bringing this to our attention! You’re right; the last sentence had a typo with restricted instead of registered, which I’ve just corrected.

Only registered stock can trade in the public markets.

And yes, public markets basically just means exchanges!

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Thanks! I’m starting to get nervous now that my exam is approaching, and I’m second guessing everything!

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