Question

Under the provisions of the Securities Act of 1933, which of the following are exempt securities? (check all that apply)

a. State Chartered Banks
b. Municipal Bonds
c. Federal Government Securities
d. Small Business Investment Companies

Answer 1

Municipal bonds, federal government securities, and small business investment companies are exempt securities under the Securities Act of 1933.

Step-by-step explanation:

The following options are exempt securities under the provisions of the Securities Act of 1933:

1. Municipal Bonds: Municipal bonds are issued by state and local governments to finance infrastructure projects. They are exempt from registration requirements because they are considered low-risk investments that serve a public purpose.
2. Federal Government Securities: These include bonds issued by the U.S. government, such as Treasury bonds, Treasury notes, and Treasury bills.
3. They are exempt from registration requirements because they are backed by the full faith and credit of the U.S. government.
4. Small Business Investment Companies: These are privately owned and managed investment firms that provide capital and other resources to small businesses. They are exempt from registration requirements because they play a vital role in supporting the growth of small businesses.

The other option, state chartered banks, are not exempt securities under the Securities Act of 1933.