PLEASE ANSWER THE QUESTION USING THIS FORMAT (ANSWER IN 3-4 DIRECT SENTENCES. NO MORE, NO LESS)

Case 11.3 Transaction Exemption Continental Enterprises, Inc., had 2,510,000 shares of stock issued and outstanding. Louis E. Wolfson and members of his im- mediate family and associates owned in excess of 40 percent of those shares. The balance was in the hands of approximately five thousand outside shareholders. Wolfson was Continental's largest shareholder and the guiding spirit of the corpo- ration, who gave direction to and controlled the company's officers. During the course of five months, without public disclosure, Wolfson and his family and asso- ciates sold 55 percent of their stock through six brokerage houses. Wolfson and his family and associates did not file a registration statement with the SEC with re- spect to these sales. Do the securities sales by Wolfson and his family and associ- ates qualify for an exemption for registration as a sale "not by an issuer, an underwriter, or a dealer? United States v. Wolfson, 405 F.2d 779 (2nd Cir. 1968)