Series 63 practice questioneasyVariable annuity vs. fixed annuity
Which of the following is LEAST likely to be considered a security under the Uniform Securities Act?
- AA variable annuity contract
- BA fixed annuity contract✓ Correct answer
- CA participation in a profit-sharing agreement
- DA collateral trust certificate
Explanation
Why B — A fixed annuity contract
Fixed annuity contracts are excluded from the USA's definition of 'security' because they do not involve investment risk being assumed by the purchaser. Variable annuities, profit-sharing agreements, and trust certificates are specifically included. See USA Sec. 401(13).
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