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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?''

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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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Stephaine
1 months ago
Because a security must be rated investment grade to be considered exempt, and BB is considered investment grade.
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Tegan
1 months ago
Why do you think that?
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Sharee
1 months ago
Ha! Trick question. The only 'exempt security' here is the one that doesn't exist - a $1 million bill that matures in 10 years. Now that's what I call 'exempt'!
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Trinidad
20 days ago
C) a $25,000 promissory note that matures in three months
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Millie
21 days ago
B) commercial paper with a $100,000 face value and a maturity of five months that is rated AA by Standard and Poors
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Art
29 days ago
A) a $500,000 promissory note that matures in two years
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Stephaine
2 months ago
I disagree, I believe the answer is D.
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Sabra
2 months ago
Hmm, I'm not so sure. Isn't an 'exempt security' something that doesn't need to be registered with the SEC? I'd go with D, just to be safe.
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Wilson
9 days ago
Let's go with D then, it seems to be the most likely choice.
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Renato
10 days ago
I'm not sure, but D does seem to match the criteria for an exempt security.
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Nilsa
13 days ago
I agree, D is the one that fits the definition of an exempt security.
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Sharee
2 months ago
I think you're right, D seems like the safest option.
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Tegan
2 months ago
I think the answer is B.
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Shannan
2 months 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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Buck
2 months ago
User 3: Yeah, that makes sense. It meets the requirements for an exempt security.
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Adolph
2 months ago
User 2: I agree, a $25,000 promissory note that matures in three months would be considered an 'exempt security'.
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Brittani
2 months ago
User 1: I think C is the correct answer.
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Annelle
3 months 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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Georgiana
2 months ago
User 3: Yes, that option meets the requirements for an exempt security.
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Long
2 months ago
User 2: I agree, commercial paper with a $100,000 face value and a maturity of five months that is rated AA by Standard and Poors is an exempt security.
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Aja
2 months ago
User 1: I think the answer is B.
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