Collin Texas Statement or Legend on Stock Certificate - Notice of Restriction on Transfer - Stock not Registered - Intrastate Exemption

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Collin
• Control #: US-1057BG
• Format: Word; Rich Text

Description

A Legend is a statement on a stock certificate noting restrictions on the transfer of the stock, often due to SEC requirements for unregistered securities. The Securities Act of 1933 regulates the initial sale of securities to the public. Some securities are exempt from coverage of the Act. Certain stock issue transactions are also exempt (i.e., exempt from registration with the Securities and Exchange Commission). The most common exempt transaction that close corporations take advantage of is the intrastate offering. To qualify for this exemption, both the investors and the issuer must all be residents of the same state. The issuer must also meet the following requirements: • 80% of its assets must be located in the state; • 80% of its income must be earned from operations within the state; and • 80% of the proceeds from the sale must be used on operations within the state. Also, for nine months after the issuance, the stock can only be sold to state residents. Collin Texas is a county located in the state of Texas, known for its thriving business community and robust economic growth. When it comes to stock certificates, a Collin Texas Statement or Legend may be seen on some stock certificates that are subject to certain restrictions on transfer. These legends serve as a notice to investors and potential buyers about the limitations associated with the stock. The Collin Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption indicates that the stock being issued is not registered with the U.S. Securities and Exchange Commission (SEC). This means that the stock cannot be freely traded on national stock exchanges or sold to out-of-state investors. There can be different types of Collin Texas Statements or Legends on Stock Certificates — Notice of Restriction on Transfer: 1. Non-Registered Stock Legend: This legend specifically mentions that the stock being issued is not registered with the SEC. It warns that the stockholder is subject to certain restrictions on resale or transfer. 2. Stock Not Eligible for Interstate Trade: This legend highlights that the stock cannot be traded or sold across state lines. It implies that the only permissible transactions involving the stock can occur within the boundaries of Texas. 3. Intrastate Exemption Legend: This legend signifies that the stock being issued is exempt from registration under an intrastate exemption. It indicates that the stock is limited to intrastate transactions, meaning it can only be bought, sold, or traded within the state of Texas. It is crucial for investors and potential buyers to carefully read and understand the Collin Texas Statement or Legend on Stock Certificates. These legends serve to protect investors by ensuring they are aware of the stock's limitations and the potential risks associated with their investment. Compliance with these restrictions is essential as violating them could have legal and regulatory consequences. Therefore, it is advisable to consult with legal and financial professionals before engaging in any transactions involving stock certificates with such legends.

Collin Texas is a county located in the state of Texas, known for its thriving business community and robust economic growth. When it comes to stock certificates, a Collin Texas Statement or Legend may be seen on some stock certificates that are subject to certain restrictions on transfer. These legends serve as a notice to investors and potential buyers about the limitations associated with the stock. The Collin Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption indicates that the stock being issued is not registered with the U.S. Securities and Exchange Commission (SEC). This means that the stock cannot be freely traded on national stock exchanges or sold to out-of-state investors. There can be different types of Collin Texas Statements or Legends on Stock Certificates — Notice of Restriction on Transfer: 1. Non-Registered Stock Legend: This legend specifically mentions that the stock being issued is not registered with the SEC. It warns that the stockholder is subject to certain restrictions on resale or transfer. 2. Stock Not Eligible for Interstate Trade: This legend highlights that the stock cannot be traded or sold across state lines. It implies that the only permissible transactions involving the stock can occur within the boundaries of Texas. 3. Intrastate Exemption Legend: This legend signifies that the stock being issued is exempt from registration under an intrastate exemption. It indicates that the stock is limited to intrastate transactions, meaning it can only be bought, sold, or traded within the state of Texas. It is crucial for investors and potential buyers to carefully read and understand the Collin Texas Statement or Legend on Stock Certificates. These legends serve to protect investors by ensuring they are aware of the stock's limitations and the potential risks associated with their investment. Compliance with these restrictions is essential as violating them could have legal and regulatory consequences. Therefore, it is advisable to consult with legal and financial professionals before engaging in any transactions involving stock certificates with such legends.