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← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionmediumComparison of Exempt and Federal Covered

Which statement accurately compares exempt securities and federal covered securities under the USA?

  1. AFederal covered securities are always exempt from antifraud provisions; exempt securities are not
  2. BBoth may be subject to notice filings, but only federal covered securities are preempted from state registration✓ Correct answer
  3. CExempt securities require registration by qualification; federal covered do not
  4. DOnly exempt securities may be listed on a national exchange
Explanation

Why B — Both may be subject to notice filings, but only federal covered securities are preempted from state registration

Federal covered securities are preempted from state registration; both may require notice filings. Antifraud rules apply to both. Exempt securities are not always listed on exchanges.

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