On a final review set, the question is presented in this context. The exam wants the best state-securities answer, not a practical business answer. Registration by notification (filing) is available to issuers that:

AHave been in continuous operation for a specified period and meet certain earnings or financial requirements✓ Correct answer
BAre newly formed corporations with no operating history
CAre registering penny stocks
DHave had a stop order issued against them in the past 12 months

Explanation

Why A — Have been in continuous operation for a specified period and meet certain earnings or financial requirements

Under USA Section 302, registration by notification (also called registration by filing) is the simplest method and is available only to established issuers with a proven track record. The issuer must have been in continuous operation for a specified period and meet minimum earnings or financial stability requirements. This variant keeps the same legal rule but shifts the setup so recall has to stay flexible.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 646+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Practice Series 63 free Series 63 exam guide

Related Regulation of Securities & Issuers questions