Exempt Securities

Question 1

U.S and Canadian Government Municipal Securities

Answer 1

These exempt securities include securities issued, insured or guaranteed by the United States or Canada, by a state or province or by their political subdivisions

This is one of 5 securities where an individual representing the issuer in the sale of it’s securities is excluded from the definition of an agent

Question 2

Foreign Government Securities

Answer 2

These exempt securities issued, insured, or guaranteed by a foreign government with which the United States maintains diplomatic relations. However, unlike U.S. or Canadian issues, political subdivisions are not included(unless guaranteed by the sovereign Government)

This is one of 5 securities where an individual representing the issuer in the sale of it’s securities is excluded from the definition of an agent

Question 3

Depository Institutions

Answer 3

These exempt securities are any security issued by and representing an interest in or a debt or guaranteed by any Bank organized by the U.S. or any savings institution or trust company organized and supervised under the laws of any state..

Includes federal savings, federal crediti union or any credit union, industrial loan association or similar association organized & supervised under the laws of this state.

other than actual bank’s the other institutions MUST be federally chartered

This is one of 5 securities where an individual representing the issuer in the sale of it’s securities is excluded from the definition of an agent

Question 4

Insurance Companies Securities

Answer 4

These exempt securities are referring to the stocks or bonds issued by insurance companies, not the variable policies sold by the companies

Question 5

Public Utility Securities

Answer 5

These exempt Securities include any security issued by a public utility company or railroad or other common carrier regulated in respect to rates by federal or state authority; or regulated in respect ot issuance or guarantee of the security by a governmental authority of the United States, any state, Canada, or any Canadian Province

Question 6

Federal Covered Securites

Answer 6

These exempt securities include any security of an issuer equal to or senior to the common stock, such as include rights, warrants, preferred stock, and any debt security

Question 7

Securities Issued by non-profit organizations

Answer 7

These exempt securities included securities issued by religious, educational, fraternal, charitable, social, athletic, reformatory, or trade associations and not for pecuniary profit. Nonprofit is the key word

Question 8

Securities Issued by cooperatives

Answer 8

These exempt securities include securities issued by a nonprofit membership cooperative to members of that cooperative

Question 9

Securities of employee benefit plans

Answer 9

These exempt securities include any investment contract issued by an employee stock purchase, saving, pension, or profit sharing plan

This is one of 5 securities where an individual representing the issuer in the sale of it’s securities is excluded from the definition of an agent

Question 10

Certain Money Market Instruments

Answer 10

Commercial paper and bankers acceptances are the two most common examples.

This is one of 5 securities where an individual representing the issuer in the sale of it’s securities is excluded from the definition of an agent

Question 11

What are the 5 examples where an individual representing the issuer in the sale of these securities is excluded from the definition of an agent?

Answer 11

1. U.S. and Canadian Government and Municipal Securities
2. Foreign Government Securities
3. Depository Institutions
4. Securities of Employee Benefit Plans
5. Certain Money Market Instruments (commercial paper, bankers acceptance are 2 most common)