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← Series 63: Regulation of Securities & Issuers
Series 63 practice questionmediumDistinction—handling of registration statements

Which security would MOST likely still be subject to substantive state review for registration purposes?

  1. AShares of a Nasdaq-listed technology company
  2. BInterests in a federally registered open-end investment company
  3. CLimited partnership interests in an oil and gas program registered under Reg A+ Tier II
  4. DShares of a local operating company that are not exchange-listed, exempt, or otherwise federal covered✓ Correct answer
Explanation

Why D — Shares of a local operating company that are not exchange-listed, exempt, or otherwise federal covered

A non-exempt, non-covered local company security may be subject to substantive state registration review. Nasdaq-listed securities, registered investment-company shares, and Tier 2 Regulation A securities are federal covered, while qualifying bank securities are exempt under the USA.

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