Houston 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
• City: Houston
• 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. Houston, Texas is a vibrant city located in the southeastern part of the United States. Known for its rich cultural diversity, booming economy, and strong entrepreneurial spirit, Houston offers a myriad of opportunities for both residents and visitors alike. When it comes to stock certificates, a common statement or legend that may be found on them is the Notice of Restriction on Transfer. This statement indicates that there are certain limitations on the transferability of the stock. This restriction could be due to various factors such as regulatory requirements, contractual obligations, or specific conditions set by the company. Additionally, another type of Houston, Texas statement or legend that may appear on a stock certificate is the designation of "Stock Not Registered." This means that the stock being held is not registered with the appropriate regulatory authorities. Companies may choose this option when they are offering shares to a limited group of investors or when they are operating within specific exemptions provided by the securities laws. Furthermore, another relevant statement or legend that may appear on a Houston, Texas stock certificate is the "Intrastate Exemption." This designation signifies that the stock being held is exempt from federal registration requirements and is only authorized for intrastate trading within the state of Texas. This exemption allows the company to sell its securities to Texas residents without having to comply with the full registration process required by federal securities laws. Overall, Houston, Texas is a vibrant city with a thriving economy and a diverse population. When it comes to stock certificates, various statements or legends may be present, including the Notice of Restriction on Transfer, Stock Not Registered, and Intrastate Exemption. These designations highlight the specific restrictions and exemptions related to the transfer and registration of the stocks being held.

Houston, Texas is a vibrant city located in the southeastern part of the United States. Known for its rich cultural diversity, booming economy, and strong entrepreneurial spirit, Houston offers a myriad of opportunities for both residents and visitors alike. When it comes to stock certificates, a common statement or legend that may be found on them is the Notice of Restriction on Transfer. This statement indicates that there are certain limitations on the transferability of the stock. This restriction could be due to various factors such as regulatory requirements, contractual obligations, or specific conditions set by the company. Additionally, another type of Houston, Texas statement or legend that may appear on a stock certificate is the designation of "Stock Not Registered." This means that the stock being held is not registered with the appropriate regulatory authorities. Companies may choose this option when they are offering shares to a limited group of investors or when they are operating within specific exemptions provided by the securities laws. Furthermore, another relevant statement or legend that may appear on a Houston, Texas stock certificate is the "Intrastate Exemption." This designation signifies that the stock being held is exempt from federal registration requirements and is only authorized for intrastate trading within the state of Texas. This exemption allows the company to sell its securities to Texas residents without having to comply with the full registration process required by federal securities laws. Overall, Houston, Texas is a vibrant city with a thriving economy and a diverse population. When it comes to stock certificates, various statements or legends may be present, including the Notice of Restriction on Transfer, Stock Not Registered, and Intrastate Exemption. These designations highlight the specific restrictions and exemptions related to the transfer and registration of the stocks being held.