Short Swing Profit quiz question

[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!

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

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