An investor who resides in State Y is visiting State X. Before returning to his home, he meets with a friend who is an agent and is registered in State X. While at a restaurant in State X, the agent convinces the client to immediately buy a specific security, rather than waiting until the client gets home. The client pays for the purchase and is told that the confirmation will be sent to his home in State Y. If the agent sold this client an unregistered, non-exempt security, which of the following statements is TRUE?
a) The transaction is legal because it occurred in State X.
b) The transaction is legal because the confirmation will be sent to State Y.
c) The transaction is illegal because the client resides in State Y.
d) The transaction is legal if the security is exempt.