On a final review set, the question is presented in this context. Treat the facts as a straight Series 63 application question. 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. The extra setup is just noise; the controlling state-law rule stays the same.

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