SIE Exam Question 17: Answer and Explanation

Question: 17

Which of the following securities are exempt from registration under the Securities Act of 1933?

• A. Common stock
• B. Municipal bond
• C. Corporate bond
• D. Preferred stock

Correct Answer: B

Explanation:

A municipal bond is exempt from registration, under the Securities Act of 1933, because it is issued by a government agency. Common stock, preferred stock, and corporate bonds are required to be registered because they are not issued by entities with high credit standing or by government agencies.