Series 63 practice questioneasyFederal covered securities definition
All of the following are considered federal covered securities under the Uniform Securities Act EXCEPT:
- AMutual funds registered under the Investment Company Act of 1940
- BCommon stock listed on the NYSE
- CFinancial institution CDs issued and sold intrastate only✓ Correct answer
- DSecurities sold to qualified purchasers as defined by the SEC
Explanation
Why C — Financial institution CDs issued and sold intrastate only
CDs offered and sold exclusively intrastate are not federal covered securities. NYSE stocks, mutual funds, and securities to qualified purchasers are covered by federal preemption (USA Sec 18(b)).
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