San Diego California 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: San Diego
• 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. San Diego, California is a bustling city located on the southwestern coast of the United States. It is known for its beautiful beaches, warm climate, and vibrant cultural scene. As for the statement or legend on a stock certificate, "Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption" refers to a specific restriction placed on the transfer of stock in San Diego, California. This legend suggests that the stock in question is not registered and can only be traded within the state's boundaries, commonly referred to as an intrastate exemption. In San Diego, there might be different variations of the statement or legend on the stock certificate, depending on the specific circumstances and compliance regulations. Some possible types could include: 1. Limited-Intrastate Transfer: This variant of the legend limits the transfer of stock within a particular region or county within San Diego, California, rather than the entire state. It signifies that the stock can only be traded among specific intrastate entities. 2. Conditional-Intrastate Transfer: This type of statement indicates that the stock's transfer is restricted to certain conditions or requirements that must be met by both the buyer and seller. These conditions could include residency, ownership of qualifying assets, or compliance with specific regulations. 3. Not Registered — Planned Public Offering: This variant of the legend implies that the stock has not been registered with any regulatory authority, but the issuer has intentions to conduct a public offering in the near future. It serves as a notice to potential investors that the stock is not yet available for public trading but may become so in the upcoming planned offering. These are just a few potential types of the San Diego, California statement or legend on a stock certificate for Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption. The specific wording and conditions may vary based on individual circumstances and compliance requirements. It is crucial for investors and potential buyers to thoroughly understand the restrictions and limitations associated with these legends before engaging in any stock transfers or transactions.

San Diego, California is a bustling city located on the southwestern coast of the United States. It is known for its beautiful beaches, warm climate, and vibrant cultural scene. As for the statement or legend on a stock certificate, "Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption" refers to a specific restriction placed on the transfer of stock in San Diego, California. This legend suggests that the stock in question is not registered and can only be traded within the state's boundaries, commonly referred to as an intrastate exemption. In San Diego, there might be different variations of the statement or legend on the stock certificate, depending on the specific circumstances and compliance regulations. Some possible types could include: 1. Limited-Intrastate Transfer: This variant of the legend limits the transfer of stock within a particular region or county within San Diego, California, rather than the entire state. It signifies that the stock can only be traded among specific intrastate entities. 2. Conditional-Intrastate Transfer: This type of statement indicates that the stock's transfer is restricted to certain conditions or requirements that must be met by both the buyer and seller. These conditions could include residency, ownership of qualifying assets, or compliance with specific regulations. 3. Not Registered — Planned Public Offering: This variant of the legend implies that the stock has not been registered with any regulatory authority, but the issuer has intentions to conduct a public offering in the near future. It serves as a notice to potential investors that the stock is not yet available for public trading but may become so in the upcoming planned offering. These are just a few potential types of the San Diego, California statement or legend on a stock certificate for Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption. The specific wording and conditions may vary based on individual circumstances and compliance requirements. It is crucial for investors and potential buyers to thoroughly understand the restrictions and limitations associated with these legends before engaging in any stock transfers or transactions.