Series 63 practice questioneasyStop Order Procedures
All of the following are grounds for the Administrator to issue a stop order EXCEPT:
- AA registration statement contains a material misstatement.
- BThe issuer is subject to a court injunction related to securities fraud.
- CThe security is a blue-chip stock.✓ Correct answer
- DThe offering is being made in violation of the USA.
Explanation
Why C — The security is a blue-chip stock.
Being a blue-chip stock is not grounds for a stop order. Material misstatements, court injunctions, and violations of the Act are all grounds per USA Sec. 306.
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