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

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• 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. The Maryland Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption is an important component of stock certificates issued in the state of Maryland. This statement or legend serves as a notice to investors and potential buyers about restrictions on the transfer of stock and its exemption from federal registration requirements. This statement is typically included on the face or back of stock certificates and contains specific language prescribed by Maryland securities laws. It highlights that the stock being issued is not registered with the Securities and Exchange Commission (SEC) and is limited in its transferability within the state of Maryland. The purpose of this restriction is to ensure compliance with the intrastate exemption under Maryland securities regulations. The Maryland Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption safeguards against unlawful interstate sales of unregistered securities, ensuring that investors are aware of the limitations of the stock they hold. This restriction promotes transparency and protects both the issuer and shareholders. Different variations or types of the Maryland Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption might exist based on the specific language required by Maryland securities laws. While the core message of the legend remains the same, the precise wording may vary slightly depending on the issuer or the circumstances of the stock issuance. In summary, the Maryland Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption is a crucial disclosure on stock certificates in Maryland. It informs investors, potential buyers, and other interested parties about the stock's limited transferability within the state and serves to comply with Maryland securities regulations and the intrastate exemption.

The Maryland Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption is an important component of stock certificates issued in the state of Maryland. This statement or legend serves as a notice to investors and potential buyers about restrictions on the transfer of stock and its exemption from federal registration requirements. This statement is typically included on the face or back of stock certificates and contains specific language prescribed by Maryland securities laws. It highlights that the stock being issued is not registered with the Securities and Exchange Commission (SEC) and is limited in its transferability within the state of Maryland. The purpose of this restriction is to ensure compliance with the intrastate exemption under Maryland securities regulations. The Maryland Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption safeguards against unlawful interstate sales of unregistered securities, ensuring that investors are aware of the limitations of the stock they hold. This restriction promotes transparency and protects both the issuer and shareholders. Different variations or types of the Maryland Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption might exist based on the specific language required by Maryland securities laws. While the core message of the legend remains the same, the precise wording may vary slightly depending on the issuer or the circumstances of the stock issuance. In summary, the Maryland Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption is a crucial disclosure on stock certificates in Maryland. It informs investors, potential buyers, and other interested parties about the stock's limited transferability within the state and serves to comply with Maryland securities regulations and the intrastate exemption.