Series 63 practice questioneasyDefinition of Security
Under Section 401(l) of the Uniform Securities Act, which of the following is considered a security?
- AA stock issued by a corporation✓ Correct answer
- BA fixed annuity contract
- CA whole life insurance policy
- DA personal loan from a bank
Explanation
Why A — A stock issued by a corporation
Stocks are explicitly included in the definition of a security under Section 401(l) of the USA. Fixed annuities and insurance policies are excluded, and personal loans are not securities.
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