Lucky the Banker mascotLTB
Series 63: Regulation of Securities & Issuers
Series 63 practice questionmediumExempt Securities - Bank Securities (Scenario)

A client is offered bonds issued by a state-chartered bank located in another state. Under the USA, the bonds are:

  1. AExempt securities regardless of the state of issue✓ Correct answer
  2. BNot exempt unless the bank is chartered in the client's home state
  3. CExempt only if the bonds are federally covered
  4. DNot exempt if sold in interstate commerce
Explanation

Why AExempt securities regardless of the state of issue

Securities issued by any bank (state or federal) qualify for exemption under USA Section 402(a)(2), regardless of the state of issue.

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.

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

Related Regulation of Securities & Issuers questions