Series 63 practice questionhardExempt Securities - Exchange-Listed Security with Unlisted Warrants
A company listed on the NASDAQ issues warrants not listed on any exchange. Under the USA, how are the warrants treated?
- AThey are not exempt unless themselves listed or otherwise qualifying✓ Correct answer
- BThey are automatically exempt as the underlying stock is listed
- CThey are exempt if sold only to institutional investors
- DThey are exempt if the company’s stock is federal covered
Explanation
Why A — They are not exempt unless themselves listed or otherwise qualifying
Only the security actually listed on the exchange is exempt under NSMIA/USA Section 402(a)(13). Unlisted warrants are not automatically exempt.
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
- Under the Uniform Securities Act, which of the following transactions would MOST likely be considered an exempt private…
- A nonprofit hospital creates a for-profit subsidiary that issues bonds to fund a new wing. Under the USA, the…
- A trustee is selling shares from a trust's portfolio to settle the estate of a deceased client. Under the Uniform…
- A state Administrator may issue a stop order to:
- Which of the following is an example of an exempt transaction under the Uniform Securities Act?
- An agent is asked whether bonds issued by a municipality in France are exempt under the USA. Which statement is TRUE?
- Preorganization subscriptions are exempt from registration under the USA if they meet which of the following conditions?
- A parent company is listed on the NYSE, and its subsidiary issues its own stock to investors in State R. Under the USA,…