Series 63 practice questionmediumExempt Securities - Exchange-Listed Securities (Scenario)
An agent offers shares of a company listed on the NASDAQ Stock Market to a client in State X. Which statement is TRUE regarding registration under the USA?
- AThe security is federally covered and exempt from state registration✓ Correct answer
- BThe agent must register the security with the State Administrator
- CThe agent must rely on an exempt transaction exemption
- DThe agent must provide the client with a prospectus approved by the state
Explanation
Why A — The security is federally covered and exempt from state registration
NASDAQ-listed securities are federal covered securities under NSMIA, and thus exempt from state registration (USA Section 402(a)(13)). State registration and prospectus approval are not required.
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