SIE practice questionmediumExempt Securities
Which of the following is true about exempt securities under the Securities Act of 1933?
- AThey can be sold with misleading statements
- BThey are still subject to anti-fraud provisions even if registration is not required✓ Correct answer
- CThey are not regulated by the SEC
- DMunicipal bonds are not considered exempt
Explanation
Why B — They are still subject to anti-fraud provisions even if registration is not required
Exempt securities, such as municipal bonds, are not required to register but are still subject to anti-fraud rules. Misleading statements and fraud are never allowed, and the SEC enforces anti-fraud provisions.
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