Lucky the Banker mascotLTB
← Series 63: Remedies & Administrative Provisions
Series 63 practice questioneasyCivil Liabilities — Rescission Rights

A buyer purchases an unregistered, non-exempt security. Under the USA, the buyer is entitled to:

  1. ATriple damages
  2. BOnly the return of the original purchase price without interest
  3. CRescission — the right to recover the purchase price plus interest, minus any income received✓ Correct answer
  4. DPunitive damages equal to twice the purchase price
Explanation

Why C — Rescission — the right to recover the purchase price plus interest, minus any income received

Under USA Section 410(a), a buyer who purchases an unregistered, non-exempt security has the right of rescission. The buyer may recover the consideration paid plus interest at the legal rate from the date of payment, less any income received on the security.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Practice Series 63 freeSeries 63 exam guide

Spot an error in this question or explanation? Tell us — we fix these fast.

Related Remedies & Administrative Provisions questions