[timmyj]

Which of the following are exempt from the registration requirements of the Securities Act of 1933?

A.
All industrial development bonds issued by municipalities
B.
Stock of a corporation offered and sold only to residents of the state in which the issuer was incorporated and doing all of its business
C.
Bankers’ acceptances with maturities at the time of issue ranging from one to two years
D.
Participation interests in a money market fund that consists wholly of short-term commercial paper
You answered: A. The correct answer is: B
Explanation:
The Securities Act of 1933 generally requires all securities to be registered before they may be offered or sold to the public except for those securities which the Act exempts. One of the available exemptions, known as the Intrastate exemption, is for securities which are part of an issue offered and sold only to persons who are residents of the same state by an issuer also residing and doing business within that same state.
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I was under the impression that bonds issued by a municipality (government) are also exempt. Why is this answer not also correct?