Under Exempt Securities, which category includes depository institutions such as banks and savings institutions?

• A. Public Utility Securities
• B. Depository Institutions
• C. Securities of employee benefit plans
• D. Securities issued by nonprofit organizations

Answer: (B)

Under this concept, certain issuers are granted exemption from registration because of their regulatory status. Depository Institutions specifically covers banks and savings institutions, which are regulated financial entities. Securities issued by these institutions are exempt from state registration under this category to facilitate their financing without the extra burden of filing for each issue. The other categories refer to different exempt issuer types (such as utilities, employee benefit plans, or nonprofits) and do not broadly cover banks and savings institutions. So the category that includes depository institutions like banks and savings institutions is Depository Institutions.