Series 63 practice questionmediumFederal Covered Exclusions
Which of the following is NOT a federal covered security?
- AA security issued by a registered investment company
- BA security listed on the NYSE
- CA security issued by a railroad company exempt under the USA✓ Correct answer
- DA security sold in a private placement under Rule 506
Explanation
Why C — A security issued by a railroad company exempt under the USA
Railroad securities are exempt under the USA, but exemption is not the same as federal covered status. NYSE-listed, mutual fund, and Rule 506 securities are federal covered.
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