Series 63 practice questionhardRegistration by Coordination vs Federal Covered Status
Which statement correctly distinguishes registration by coordination from federal covered security status?
- ACoordination is a state registration method tied to a federal Securities Act filing; using it does not by itself make the security federal covered✓ Correct answer
- BEvery security registered with the SEC is automatically exempt from all state registration requirements
- CCoordination is available only for securities that states are forbidden to register
- DNSMIA eliminated registration by coordination in every state
Explanation
Why A — Coordination is a state registration method tied to a federal Securities Act filing; using it does not by itself make the security federal covered
Registration by coordination lets a state registration become effective in coordination with a federal Securities Act registration statement. Federal covered status is a separate preemption classification under federal law; a federal filing alone does not make every offering federal covered.
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