Uniform Securities Agent State Law (Series 63) Practice Exam 2025 - Free Series 63 Practice Questions and Study Guide

Non-exempt securities are the type of securities that require registration in every state where they are sold. This is because non-exempt securities do not fall under the exemptions provided by the Uniform Securities Act, which allows certain types of securities or transactions to be exempt from registration requirements. Non-exempt securities typically include common stocks, corporate bonds, and other securities that are subject to state regulations.

The requirement for registration ensures that these securities undergo the necessary scrutiny to protect investors from potential risks and fraudulent activities. By necessitating registration, states can ensure that adequate information about the securities, including financial disclosures and regulatory compliance, is available to potential investors.

Exempt securities, on the other hand, include government bonds and bank securities, which are considered to pose a lower risk to investors and therefore do not need to be registered in every state. Foreign securities might have specific registration protocols but do not fit the general category requiring registration in every state either. Mutual funds, while often required to register at the federal level with the SEC, also typically have exemptions under certain conditions and do not universally require registration in every state.

Thus, the requirement for registration of non-exempt securities in every state serves as a critical mechanism to ensure investor protection across various jurisdictions.