Series 63 practice questioneasyExempt Securities — Nonprofit Securities
Securities issued by a religious, educational, or charitable organization that is organized as a nonprofit are:
- AAlways required to register with the state Administrator
- BExempt from state registration under the USA✓ Correct answer
- COnly exempt if they are also registered with the SEC
- DRequired to file by qualification in every state
Explanation
Why B — Exempt from state registration under the USA
Under USA Section 401, securities issued by nonprofit organizations organized for religious, educational, benevolent, charitable, fraternal, or social purposes are exempt from state registration. The exemption applies provided the organization does not operate for pecuniary profit and no part of the net earnings inures to the benefit of any private shareholder.
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.
Related Regulation of Securities & Issuers questions
- Under the Uniform Securities Act, which of the following Canadian securities may qualify for an exemption from state…
- Securities issued by an open-end investment company (mutual fund) registered under the Investment Company Act of 1940…
- A financial adviser tells a client that because a security is exempt from state registration, it is also exempt from…
- An insurance policy or fixed annuity contract issued by an insurance company authorized to do business in the state is: