RegulationsQuestion 43 of 110
Which of the following is an exempt security under the Securities Act of 1933?
a.Shares of a newly organized open-end investment company
b.Common stock of a listed manufacturing company
c.Units of a unit investment trust holding corporate bonds
d.General obligation bonds issued by a state or municipality
Explanation
Municipal and U.S. government securities are exempt from the registration requirements of the 1933 Act, though the antifraud provisions still apply. Investment company shares, including UIT units, must be registered and sold with a prospectus. Corporate equity offerings are the classic example of securities that must be registered.
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