Series 63 practice questionmediumSection 18 Preemption
Section 18(b) of the Securities Act of 1933 generally preempts state registration requirements for securities that are:
- ASold only within one state
- BListed or authorized for listing on national securities exchanges✓ Correct answer
- CIssued by a government agency
- DSold to fewer than 35 nonaccredited investors
Explanation
Why B — Listed or authorized for listing on national securities exchanges
Section 18(b) preempts state registration for securities listed (or pending listing) on national exchanges and certain others. Intrastate offerings and most government securities are not federal covered under this section.
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