Series 63: Exercise

Exercise

Answer true or false

1. 1. _Exercising an option on a security is considered a sale.
2. 2. _Sales calls are not considered to be offers.
3. 3. _A radio communication broadcast from State A and heard in State B is considered to be an offer in both State A and State B.
4. 4. _State administrators have some jurisdiction over federal covered securities.
5. 5. _An administrator can never institute a stop order against a registration statement on the basis of information that he or she knew at the time that registration went into effect.

Answers

1. 1. True. The exercise of options on securities is always considered to be a sale.
2. 2. False. Sales calls are always considered to be offers.
3. 3. False. A radio broadcast is only considered to be an offer in the state where the broadcast originated.
4. 4. True. Securities listed on national e