Series 63 practice questioneasyExempt Securities - Nonprofit Organization Securities
Under the USA, securities issued by which of the following are generally exempt from state registration?
- AA nonprofit charitable organization✓ Correct answer
- BA for-profit hospital
- CA mutual fund
- DA startup technology company
Explanation
Why A — A nonprofit charitable organization
Securities issued by nonprofit organizations, including charitable groups, are exempt under USA Section 402(a)(5). For-profit hospitals, mutual funds, and startups do not qualify for this exemption.
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