State Registration


Hello, why registration by qualification is not a good answer here? Thanks.

Hi @Hungry_turquoise_par - good question.

Registration by qualification is reserved for securities that will trade in one state only. Securities subject to this registration process will only be registered with the state administrator. The question states a security is subject to registration with the SEC and the state administrator. If a security must register with the SEC, it will not be registered by qualification (again, this is registration with the state only). When a security must register at both the federal and state level, it will be registered by coordination.

Here’s an easy way to break down the three registration methods:

  • Registration by filing (notice filing) = SEC registration only
  • Registration by coordination = SEC and state registration
  • Registration by qualification = state registration only
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ok, thanks Brandon. this makes sense.

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