Capital MarketsQuestion 321 of 398
Which of the following is an example of an exempt security under the Securities Act of 1933?
a.Common stock of a newly formed technology startup selling to the public
b.Corporate bonds issued in a public offering
c.U.S. government (Treasury) securities
d.Shares of a foreign company listed on a U.S. exchange
Explanation
U.S. government securities are exempt securities, meaning they are not required to register under the Securities Act of 1933. Other exempt securities include municipal bonds and certain bank and nonprofit issues; most corporate stock and bond offerings to the public must be registered.
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