A corporation’s stock is traded only in the over-the-counter (OTC) market and is not listed on any national exchange. Which statement is TRUE regarding state regulation of this security?

1. AIt is subject to full state registration requirements✓ Correct answer
2. BIt is automatically a covered security and exempt from state registration
3. CIt is exempt from both federal and state regulations
4. DIt may only be sold to institutional investors

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.

• How did the NSMIA affect state authority over the registration of certain securities?
• Which municipal-style obligation is NOT automatically exempt from registration under the USA?
• Securities issued, insured, or guaranteed by which of the following entities are exempt from state registration under…
• An open-end mutual fund registered under the Investment Company Act of 1940 plans to offer shares in State Y. Under the…
• Under the USA, which of the following is a responsibility that state Administrators retain for federally covered…
• Which of the following securities is most likely exempt from state registration, regardless of federal status?
• Which of the following meets the USA’s definition of a 'covered security' under NSMIA?
• Which of the following actions may a state securities Administrator NOT take regarding a federally covered security?