Series 63 practice questioneasyDefinition of Federal Covered Securities
Which of the following is considered a federal covered security under the Uniform Securities Act (USA)?
- AA security listed on the New York Stock Exchange (NYSE)✓ Correct answer
- BA security issued by a local municipality within the same state
- CAn interest in a fixed annuity contract
- DA security issued under Regulation D Rule 504
Explanation
Why A — A security listed on the New York Stock Exchange (NYSE)
Securities listed on exchanges such as the NYSE are federal covered securities under Section 18 of the Securities Act of 1933 and are preempted from state registration. Municipal securities and fixed annuities are exempt, but not federal covered. Rule 504 offerings are not automatically federal covered.
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