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SIE practice questionhardExempt Securities

Which of the following securities is EXEMPT from registration under the Securities Act of 1933?

  1. ACommon stock of a publicly traded technology company
  2. BU.S. government securities (Treasury bonds, notes, bills)✓ Correct answer
  3. CCorporate bonds offered to the general public
  4. DShares of a startup company sold in an IPO
Explanation

Why B — U.S. government securities (Treasury bonds, notes, bills)

U.S. government securities (Treasuries) are exempt from registration under the Securities Act of 1933 because they are backed by the full faith and credit of the U.S. government. Other exempt securities include municipal bonds, bank securities, and securities of non-profit organizations. Note that 'exempt from registration' does NOT mean exempt from anti-fraud provisions — all securities are subject to anti-fraud rules. Common stocks in IPOs and publicly offered corporate bonds must be registered.

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