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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Stephaine

8 days ago

Because a security must be rated investment grade to be considered exempt, and BB is considered investment grade.

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Tegan

9 days ago

Why do you think that?

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Sharee

10 days 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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Stephaine

18 days ago

I disagree, I believe the answer is D.

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Sabra

1 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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Sharee

18 days ago

I think you're right, D seems like the safest option.

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Tegan

1 months ago

I think the answer is B.

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Shannan

1 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

16 days ago

User 3: Yeah, that makes sense. It meets the requirements for an exempt security.

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Adolph

1 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

1 months ago

User 1: I think C is the correct answer.

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Annelle

2 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

25 days ago

User 3: Yes, that option meets the requirements for an exempt security.

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Long

29 days 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

1 months ago

User 1: I think the answer is B.

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