Series 63 practice questionmediumRegistration by Coordination vs Qualification
Which of the following statements BEST distinguishes registration by qualification from registration by coordination?
- AQualification is generally used for multi-state offerings.
- BCoordination is tied to federal registration effectiveness.✓ Correct answer
- CCoordination requires a prospectus; qualification does not.
- DQualification is reserved for securities exempt from federal registration.
Explanation
Why B — Coordination is tied to federal registration effectiveness.
Coordination’s effectiveness depends on federal registration (USA Sec. 303), while qualification is independent. Both require a prospectus. Qualification is used when federal registration is not occurring.
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