Series 65: Exercise

Exercise

Choose security or not a security

1. 1. _ A valuable antique musical instrument
2. 2. _ A variable annuity
3. 3. _ A term life insurance policy
4. 4. _ A bond issued by a local school district
5. 5. _ Interest in a collection of antique musical instruments
6. 6. _ An option on commodities
7. 7. _ A personal residence

Answers

1. 1. Not a security. Collectibles, such as antiques, are not considered to be securities.
2. 2. Security. Annuities without variable features are not considered to be securities. In contrast, variable annuities are securities.
3. 3. Not a security. Because it is a fixed and non-variable type of insurance contract, a term life insurance policy is not an annuity.
4. 4. Security. All bonds are considered to be securities.
5. 5. Security. An interest in something, meaning a situation in which an investment