Series 65: 9.1.2.4. Federal Covered Securities And Their Sale At The State Level

9.1.2.4. Federal Covered Securities and Their Sale at the State Level

Under NSMIA, a class of securities called federal covered securities only need to be registered at the federal level and do not have to be registered at the state level. This is meant to help avoid redundant filings for issuers and unneeded oversight for regulators.

The following securities are federal covered securities and must be registered at the federal level, which means they will not be registered at the state level:

• Securities listed on the New York Stock Exchange, the Nasdaq Exchange, the American Stock Exchange, or another national exchange

• Debt securities or preferred stock of any of the companies that have stocks listed on the previous exchanges

• Securities issued by an investment company that qualifies under the Investment Company Act of 1940

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