Series 63 practice questionhardExempt Securities - Bank Holding Companies
An agent inquires whether securities issued by a bank holding company are exempt under the USA. Which is the correct response?
- ANo, only securities issued by the bank itself are exempt✓ Correct answer
- BYes, because bank holding companies are treated like banks for exemption purposes
- CNo, unless the holding company is also a registered public company
- DYes, but only if the security is federally covered
Explanation
Why A — No, only securities issued by the bank itself are exempt
The exemption (USA Section 402(a)(2)) specifically applies to banks, savings institutions, and trust companies, not bank holding companies. Holding company securities require separate qualification.
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