Series 63 practice questioneasyCovered Securities: Examples
Which of the following offerings is NOT considered a 'covered security' under NSMIA?
- AAn offering of shares exclusively to residents of one state (intrastate offering)✓ Correct answer
- BA security traded on the NASDAQ
- CA security issued by a registered investment company
- DA security issued by the U.S. government
Explanation
Why A — An offering of shares exclusively to residents of one state (intrastate offering)
Intrastate offerings are exempt from federal registration but are NOT covered securities under NSMIA (USA Section 18(b)(4)), so they may be regulated by state Blue Sky laws. The others are covered securities.
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