Series 63 practice questioneasyNSMIA Preemption
Under the National Securities Markets Improvement Act (NSMIA), which of the following securities is most likely to be considered a 'covered security' and preempted from state registration?
- AA stock listed on the NYSE✓ Correct answer
- BA small business private placement
- CA municipal bond issued outside the state
- DAn intrastate offering registered only in one state
Explanation
Why A — A stock listed on the NYSE
Securities listed on national exchanges like the NYSE are 'covered securities' under NSMIA and generally preempted from state registration (USA Section 18). Private placements and intrastate offerings are not covered securities (B, D). Municipal bonds are exempt from state registration under the Uniform Securities Act, but states cannot require registration for municipal bonds issued outside the state (C).
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