Series 63 practice questioneasyJurisdiction
Which of the following transactions would give the State Administrator jurisdiction under the USA?
- AA sale of securities to a resident of the state, even if the issuer is located elsewhere.✓ Correct answer
- BA sale of securities between two residents of a different state.
- CA transaction involving only federal covered securities.
- DA purchase of securities by a bank.
Explanation
Why A — A sale of securities to a resident of the state, even if the issuer is located elsewhere.
Any sale to a resident of the Administrator’s state gives that Administrator jurisdiction (USA Sec 414). Transactions outside the state or with federal covered securities may be outside state jurisdiction.
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