In a remedial practice session, the fact pattern is framed this way. The key is the registration, exemption, or ethical rule doing the real work. Prior to NSMIA, a company conducting a multi-state offering had to register its securities in each state where the securities would be sold. After NSMIA, this requirement was eliminated for which category?

Why C — Securities listed on specified national exchanges and other designated federal covered securities

NSMIA eliminated state registration requirements for federal covered securities, which include securities listed on national exchanges such as NYSE and NASDAQ, securities issued by registered investment companies, securities sold under SEC Rule 506, and securities sold to qualified purchasers. This dramatically reduced the regulatory burden of multi-state offerings for qualifying issuers. This version tests the same concept with a different fact pattern wrapper.