Under SEC rules, which of the following products is a security?

Question

Certilyst · Accepted Answer

C Rationale: An exchange-traded fund (ETF) is considered a security under SEC rules. ETFs are investment funds that are traded on stock exchanges, similar to individual stocks, and they represent a collection of assets, making them subject to securities regulations.

Silver bullion does not qualify as a security because it is a physical commodity, not an investment contract. It represents ownership of a tangible asset rather than an investment in a pooled fund or financial instrument.

Foreign currency is also not classified as a security, as it involves the exchange of one currency for another in the forex market and does not represent an ownership stake in a company or a financial asset.

A future on the S&P 500 Index (SPX) is a derivative contract and while it is regulated, it does not fall under the traditional definition of a security, which typically involves direct ownership of a financial instrument.

Securities Industry Essentials SIE Exam Study Guide

Under SEC rules, which of the following products is a security?