Series 63 practice questionmediumDefinition of a Covered Security
Which of the following meets the USA’s definition of a 'covered security' under NSMIA?
- AA closed-end fund registered with the SEC✓ Correct answer
- BA corporate bond issued through an intrastate offering
- CA non-listed, non-registered oil and gas interest
- DA private placement not meeting Rule 506 requirements
Explanation
Why A — A closed-end fund registered with the SEC
SEC-registered closed-end funds are covered securities (USA Section 18(b)(2)). Intrastate offerings (B), non-registered interests (C), and non-506 private placements (D) are not covered.
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