Series 63 practice questionmediumDistinction: equipment trust certificate vs. fixed annuity
Which of the following is included in the definition of a security under the Uniform Securities Act, but a fixed annuity contract is NOT?
- AAn insurance policy
- BAn equipment trust certificate✓ Correct answer
- CAn endowment policy
- DA treasury bill
Explanation
Why B — An equipment trust certificate
An equipment trust certificate is expressly included in the USA definition of a security. Insurance policies, endowment policies, and fixed annuities issued by an authorized insurer are excluded. Treasury bills are securities, but they are exempt from state registration as U.S. government obligations.
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