Series 63 practice questionmediumStop Order Grounds
Under the USA, which of the following is NOT grounds for a state Administrator to issue a stop order against a security registration?
- AFailure to pay registration fees
- BA registration statement containing a false statement of material fact
- CThe issuer's business model is considered too risky✓ Correct answer
- DUnreasonable commissions paid to underwriters
Explanation
Why C — The issuer's business model is considered too risky
The riskiness of the business is not a stop order ground (USA Section 306). Material misstatements, unpaid fees, and excessive commissions are.
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