Series 63 practice questioneasyExempt Securities — Federal Covered Securities
Which of the following is considered a federal covered security and therefore exempt from state registration?
- AA security issued by a startup in an intrastate offering
- BA security issued by a company with less than A security listed on the New York Stock Exchange million in assets
- CA private placement sold to only 5 investors in one state
- DA security listed on the New York Stock Exchange✓ Correct answer
Explanation
Why D — A security listed on the New York Stock Exchange
Under NSMIA and USA Section 102(6), securities listed on national exchanges such as the NYSE, NASDAQ, or American Stock Exchange are considered federal covered securities. These securities are exempt from state registration requirements, though states retain antifraud authority over them.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 646+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Regulation of Securities & Issuers questions
- Which of the following securities is EXEMPT from registration under the Uniform Securities Act?
- An issuer filing by coordination must provide the state Administrator with a statement regarding the amount of…
- Securities issued, insured, or guaranteed by which of the following entities are exempt from state registration under…
- A state Administrator issues a stop order against an issuer's registration statement after discovering that the…