Finra Exam Series-63 Topic 5 Question 9 Discussion

Actual exam question for Finra's Series-63 exam

Question #: 9
Topic #: 5

[All Series-63 Questions]

: 65

Which of the following would meet the requirements for an ''exempt security?''

Aa $500,000 promissory note that matures in two years

Bcommercial paper with a $100,000 face value and a maturity of five months that is rated AA by Standard and Poors

Ca $25,000 promissory note that matures in three months

Dcommercial paper with a $200,000 face value and a maturity of three months that is rated BB by Standard and Poors

Show Suggested Answer

Suggested Answer: B

An issue of commercial paper with a $100,000 denomination and a maturity of five months with an AA rating from Standard and Poors meets the requirements for an ''exempt security.'' A short-term security, with no more than 270 days to maturity, that has a denomination of at least $50,000, and has a rating of AAA, AA, or A from a recognized rating agency is exempt from registration with the state Administrator.

by Malcom at May 02, 2025, 12:30 PM

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Shannan

3 hours ago

C seems like the correct answer to me. A $25,000 promissory note that matures in three months would be considered an 'exempt security'.

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Annelle

6 days ago

I think the answer is B. Commercial paper with a $100,000 face value and a maturity of five months that is rated AA by Standard and Poors meets the requirements for an 'exempt security'.

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