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← Series 63: Regulation of Securities & Issuers
Series 63 practice questionmediumRegistration by Coordination vs Qualification

Which of the following statements BEST distinguishes registration by qualification from registration by coordination?

  1. AQualification is generally used for multi-state offerings.
  2. BCoordination is tied to federal registration effectiveness.✓ Correct answer
  3. CCoordination requires a prospectus; qualification does not.
  4. 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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