Series 63 practice questionmediumNon-Security Examples
Which of the following is NOT a security under Section 401(l) of the USA?
- AAn interest in a mining partnership
- BA fixed annuity contract issued by an insurance company authorized to do business in the state✓ Correct answer
- CA convertible corporate bond
- DA variable universal life policy
Explanation
Why B — A fixed annuity contract issued by an insurance company authorized to do business in the state
A qualifying fixed annuity is excluded from the USA definition of a security. Bank-issued notes are securities that may be exempt from registration; mining interests, convertible bonds, and variable life policies are securities.
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