Final answer:
If a registered representative (RR) participates in private securities transactions, the broker-dealer is affected and must be notified and give approval beforehand.
Step-by-step explanation:
If a registered representative (RR) participates in private securities transactions, then the broker-dealer is affected. Private securities transactions refer to transactions that occur away from the broker-dealer firm. When an RR engages in such transactions, they must notify their firm in writing and receive approval beforehand. Failure to do so can result in disciplinary action by regulatory bodies such as the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).