SIE (Securities Industry Essentials) Practice Exam

Under the Securities Act of 1933, registration is required for which of the following securities?

1. American Depositary Receipts (ADRs)

2. U.S. Treasury bonds

3. Municipal bonds

4. Short-term commercial paper

The correct answer is: American Depositary Receipts (ADRs)

The Securities Act of 1933 requires registration for most securities offered to the public, including American Depositary Receipts (ADRs). This is because ADRs represent ownership in a foreign company and are sold in the United States, so they fall under the definition of a security. U.S. Treasury bonds and Municipal bonds are both types of fixed income securities issued by the government and are exempt from registration under the Securities Act of 1933. This is because they are backed by the full faith and credit of the U.S. government. Short-term commercial paper also does not require registration under the Securities Act of 1933, as it is a type of unsecured debt instrument that matures in less than a year and is typically only sold to institutional investors. Therefore, ADRs are the only option that requires registration under the Securities Act of 1933 out of the given choices.