Series 63 practice questionmediumStop Order - Suspension vs Revocation
Which of the following is a key distinction between suspension and revocation of a securities registration under the USA?
- ASuspension is usually permanent, while revocation is temporary.
- BRevocation terminates effectiveness, while suspension halts it pending further action.✓ Correct answer
- CSuspension may only be issued after a hearing.
- DRevocation is not permitted for registration by coordination.
Explanation
Why B — Revocation terminates effectiveness, while suspension halts it pending further action.
Revocation ends the registration; suspension temporarily halts it pending further investigation or hearing (USA Sec. 306). Suspensions can be issued prior to a hearing.
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