Series 63 practice questionmediumPrivate Placements and Federal Coverage
Which of the following private placements is considered a federal covered security under Section 18 of the Securities Act of 1933?
- AA Rule 504 Regulation D offering
- BA Rule 506 Regulation D offering✓ Correct answer
- CAn intrastate offering under Rule 147
- DA Regulation S offering for foreign sales
Explanation
Why B — A Rule 506 Regulation D offering
Only Rule 506 (Reg D) offerings are federal covered securities; they are not subject to state registration though notice filings may be required. Other private placements are not federal covered.
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