Unit 4 Flashcards
no person can lawfully offer or sell any security in state unless
- the security is exempt from registration under the act
2.security is federally covered 3.transaction is exempted
4.registered under USA
are short term notes and debt obligations a form of exempt securities, give an example?
Yes, commercial paper
are securities issued by exempt issuers exempt securities? give example of exempt issuers
Yes- U.S government agencies, municipalities, Canadian governments, issues guaranteed by foreign governments.
Are securities issued by a bank exempt securities?
Yes, anything like a bank including credit unions
if insurance companies issue securities are they exempt from state registration?
Yes, but not variable products
Notice Filing
Federally covered securities need to send in a “notice” to states that it’ll be selling securities in that state.
Registration by coordination
File with both SEC and state.
is a pre organization certificate an exam or transaction?
Yes but only at a maximum of 10 subscribers.
is a private placement a form of an exempt transaction
yes but it is restricted to 10 offers in any 12 consecutive months
true or false exempt securities must te establish their exemptions at least annually
false
registered by qualification is effective
when determined by the administrator
What are the registration requirements in regards to USA?
Must say how much of the security is being issued in state, and administrator can request regular reports as frequent as quarterly
the administrator is not empowered to deny an exemption from state registration to?
U.S government securities and municipal bonds issued by another state
what is a nonissuer transaction
when someone other than the issuer sells the securities
when a security is registered by qualification, the registration statement may be filed by all of the following except
administrator
