Series 63 practice questioneasyDefinition and Examples
Which of the following best describes a security that is 'federal covered'?
- AA security that is exempt from federal registration requirements under the Securities Act of 1933
- BA security registered with the SEC and traded on a national securities exchange✓ Correct answer
- CA security issued by a local business within one state
- DA security offered and sold exclusively to residents of one state
Explanation
Why B — A security registered with the SEC and traded on a national securities exchange
Federal covered securities include those registered with the SEC and listed on national exchanges. Exempt securities and intrastate offerings are not federal covered.
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