Series 63 practice questioneasyFederal Covered Security Status
Which security would require registration with the state Administrator under the USA?
- AA security listed on the Chicago Stock Exchange
- BA security issued by an investment company registered with the SEC
- CA security sold under a private placement under Rule 506 of Regulation D
- DA security issued by a local business, not listed on any exchange or exempted✓ Correct answer
Explanation
Why D — A security issued by a local business, not listed on any exchange or exempted
Securities not listed, not exempt, or not federal covered typically require state registration. The other choices are federal covered securities or exempt under NSMIA.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulation of Broker-Dealers & Agents questions
- A mutual fund registered under the Investment Company Act of 1940 wishes to offer shares in State Y. What may the State…
- Under the National Securities Markets Improvement Act (NSMIA), which of the following is NOT subject to state…
- Which of the following best describes a security that is 'federal covered'?
- An agent in State A is offering shares of a company listed on the NASDAQ Stock Market. Under the USA, the Administrator…
- A broker-dealer is underwriting an IPO for a company intending to list its shares on the NYSE. The broker-dealer wishes…
- Which of the following is considered a federal covered security under the Uniform Securities Act (USA)?
- If an agent sells shares of an SEC-registered open-end mutual fund to a client in State Z, which of the following…
- A broker-dealer with no office in State N effects securities transactions exclusively for a national bank with branches…