Under what circumstances can an investor provide an exemption for securities registration?

Investors can provide an exemption for securities registration primarily when they qualify under specific exemptions outlined in state or federal securities laws. These exemptions exist to facilitate certain transactions without requiring the extensive registration process normally mandated for securities offerings.

For instance, both federal and state laws may provide exemptions for private placements, intrastate offerings, and transactions with accredited investors, among others. This allows investors to engage in securities transactions while meeting specific criteria that justify bypassing typical registration requirements to promote efficiency and ease in capital formation.

Other options do not align with the criteria established in securities laws. Engaging in insider trading is illegal and does not serve as a valid basis for exemption. The mention of blue chip stocks disregards the broader context of various securities that may qualify for exemptions. Similarly, the recommendation by an agent does not fulfill regulatory criteria for exemption but rather pertains to the advisory role and suitability of investments. Thus, understanding the specific exemptions provided by law is crucial for investors seeking to navigate regulatory requirements effectively.