Which statement about private securities transactions is FALSE?

The statement indicating that private securities transactions may not involve private placements is false. Private securities transactions, by their nature, often include private placements, which are offerings of securities to a limited number of investors without a public offering. These transactions are typically exempt from registration requirements under securities regulations, making them a common aspect of private securities dealings.

In private securities transactions, it is crucial for registered persons to adhere to regulations that ensure proper oversight and compliance with industry standards. When compensation is involved, the requirements necessitate approval from the firm, which helps maintain transparency and regulatory compliance. If there is no compensation, while notification to the firm is required, the nature of the transactions remains the same—still potentially involving private placements. Personal transactions in mutual funds by registered persons are also specifically addressed under these rules, making them a regulated area requiring attention.