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Series 63: Regulation of Securities & Issuers
Series 63 practice questionmediumQualification Process Timing

An issuer files for registration by qualification in State Z. The Administrator issues a stop order for a material omission. Two weeks later, the missing disclosure is provided and all other requirements are met. Which is the MOST LIKELY result?

  1. AThe registration becomes effective immediately upon filing the missing disclosure.
  2. BThe Administrator must lift the stop order before effectiveness.✓ Correct answer
  3. CThe registration automatically becomes effective 20 days after the original filing date.
  4. DThe registration never becomes effective.
Explanation

Why BThe Administrator must lift the stop order before effectiveness.

The Administrator must affirmatively lift the stop order for registration to become effective (USA Sec. 306). Effectiveness is not automatic after filing corrections.

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