FINRA FINRA Certifications FINRA-SERIES-63 Questions & Answers

• Question 251:

  Assuming the security is not registered under the Uniform Securities Act, which of the following would not be exempt from state registration?

  A. a variable annuity contract offered by an insurance company with offices in the state

  B. a stock that is listed on the American Stock Exchange

  C. a stock that is listed on the OTC Bulletin Board

  D. a put option on a stock that sells in the over-the-counter market

  Correct Answer: C

  A stock that is listed on the OTC Bulletin Board would not be exempt from state registration unless it already happens to be registered under the Uniform Securities Act. Variable annuities and stocks listed on the American Stock Exchange are classified as federal covered securities by the NSMIA of 1996 and are exempt from state registration. An amendment to the Securities and Exchange Act of 1934 exempts option contracts from state registration.