Mississippi 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 Mississippi Statement or Legend on a Stock Certificate refers to a notice or restriction placed on the transfer of stock that is not registered under an intrastate exemption in the state of Mississippi. This statement or legend serves as a legal indication that the stock may only be sold or transferred within the state boundaries and cannot be traded on national securities exchanges. The purpose of this restriction is to ensure compliance with the state's securities regulations and protect investors from potential risks associated with trading unregistered securities. The Mississippi Statement or Legend on a Stock Certificate aims to preserve the integrity of the state's securities market by preventing improper trading and promoting transparency. There are different types of Mississippi Statements or Legends that can be found on Stock Certificates, depending on the specific circumstances. Some common variations include: 1. "Mississippi Restricted" — This legend appears on stock certificates issued by a company that does not meet the qualifications for registration under an intrastate exemption in Mississippi. It indicates that the stock can only be transferred or sold within the boundaries of the state. 2. "Restricted Stock — Transfer Limited— - This statement may be seen on stock certificates where the stock was originally issued under an intrastate exemption, but subsequent transfers or sales are subject to limitations imposed by Mississippi securities laws. 3. "Not for Sale Outside Mississippi" — This legend would be affixed to stock certificates for securities that cannot be transferred or sold outside the state. It implies that the stock is intended for intrastate transactions only. 4. "Intrastate Exemption — Stock Transfer Restricted— - This statement signifies that the stock certificate represents shares issued under an intrastate exemption in Mississippi, but the transfer or sale of the stock is subject to certain restrictions imposed by state securities regulations. It is essential for individuals and entities holding stock certificates with any of these legends to familiarize themselves with the specific restriction or limitation imposed. Violation of these restrictions may lead to legal consequences or void any unauthorized transfer of stock. Before engaging in any stock transfer or sale, it is advisable to consult legal counsel or seek guidance from the appropriate authorities to ensure compliance with Mississippi securities laws.

The Mississippi Statement or Legend on a Stock Certificate refers to a notice or restriction placed on the transfer of stock that is not registered under an intrastate exemption in the state of Mississippi. This statement or legend serves as a legal indication that the stock may only be sold or transferred within the state boundaries and cannot be traded on national securities exchanges. The purpose of this restriction is to ensure compliance with the state's securities regulations and protect investors from potential risks associated with trading unregistered securities. The Mississippi Statement or Legend on a Stock Certificate aims to preserve the integrity of the state's securities market by preventing improper trading and promoting transparency. There are different types of Mississippi Statements or Legends that can be found on Stock Certificates, depending on the specific circumstances. Some common variations include: 1. "Mississippi Restricted" — This legend appears on stock certificates issued by a company that does not meet the qualifications for registration under an intrastate exemption in Mississippi. It indicates that the stock can only be transferred or sold within the boundaries of the state. 2. "Restricted Stock — Transfer Limited— - This statement may be seen on stock certificates where the stock was originally issued under an intrastate exemption, but subsequent transfers or sales are subject to limitations imposed by Mississippi securities laws. 3. "Not for Sale Outside Mississippi" — This legend would be affixed to stock certificates for securities that cannot be transferred or sold outside the state. It implies that the stock is intended for intrastate transactions only. 4. "Intrastate Exemption — Stock Transfer Restricted— - This statement signifies that the stock certificate represents shares issued under an intrastate exemption in Mississippi, but the transfer or sale of the stock is subject to certain restrictions imposed by state securities regulations. It is essential for individuals and entities holding stock certificates with any of these legends to familiarize themselves with the specific restriction or limitation imposed. Violation of these restrictions may lead to legal consequences or void any unauthorized transfer of stock. Before engaging in any stock transfer or sale, it is advisable to consult legal counsel or seek guidance from the appropriate authorities to ensure compliance with Mississippi securities laws.