Suffolk New York 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: Suffolk
• 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. Suffolk New York Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption: A Suffolk New York Statement or Legend on a stock certificate refers to a specific notification or restriction placed on a stock certificate issued in Suffolk County, New York. This statement or legend indicates that the particular stock being transferred or traded is not registered with the appropriate regulatory authorities and is eligible for an intrastate exemption instead. The intrastate exemption implies that the stock can only be bought, sold, or transferred within the boundaries of Suffolk County, New York. It is important for potential buyers or investors to be aware of this restriction as it limits the stock's marketability and its ability to be traded on a national or international scale. The notice of restriction on transfer serves as a legal warning or precautionary measure, ensuring that investors understand the limitations and potential risks associated with purchasing or holding such stocks. The Suffolk New York Statement or Legend is typically printed directly on the stock certificate to guarantee its visibility and easy identification by potential buyers. Different types of Suffolk New York Statements or Legends on Stock Certificates may exist, depending on the specific circumstances and regulations applicable. Some variations of this statement may include the following: 1. "Suffolk County Restriction — Intrastate Exemption": This legend indicates that the stock can only be transferred or sold within the borders of Suffolk County, New York, and cannot be traded across state or national boundaries. 2. "Restricted Transfer — Not Registered with SEC": This statement highlights that the stock has not been registered with the U.S. Securities and Exchange Commission (SEC), which further emphasizes the importance of observing the intrastate exemption restrictions. 3. "Suffolk County Only — Unregistered Stock": This legend provides a concise description, clearly stating that the stock is limited to Suffolk County alone and is not formally registered with any relevant authorities. Investors interested in stocks with Suffolk New York Statements or Legends on the certificates should carefully evaluate the restriction and seek legal advice if necessary. Understanding the limitations and implications of holding such stocks is crucial to make informed investment decisions and ensure compliance with local regulatory requirements.

Suffolk New York Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption: A Suffolk New York Statement or Legend on a stock certificate refers to a specific notification or restriction placed on a stock certificate issued in Suffolk County, New York. This statement or legend indicates that the particular stock being transferred or traded is not registered with the appropriate regulatory authorities and is eligible for an intrastate exemption instead. The intrastate exemption implies that the stock can only be bought, sold, or transferred within the boundaries of Suffolk County, New York. It is important for potential buyers or investors to be aware of this restriction as it limits the stock's marketability and its ability to be traded on a national or international scale. The notice of restriction on transfer serves as a legal warning or precautionary measure, ensuring that investors understand the limitations and potential risks associated with purchasing or holding such stocks. The Suffolk New York Statement or Legend is typically printed directly on the stock certificate to guarantee its visibility and easy identification by potential buyers. Different types of Suffolk New York Statements or Legends on Stock Certificates may exist, depending on the specific circumstances and regulations applicable. Some variations of this statement may include the following: 1. "Suffolk County Restriction — Intrastate Exemption": This legend indicates that the stock can only be transferred or sold within the borders of Suffolk County, New York, and cannot be traded across state or national boundaries. 2. "Restricted Transfer — Not Registered with SEC": This statement highlights that the stock has not been registered with the U.S. Securities and Exchange Commission (SEC), which further emphasizes the importance of observing the intrastate exemption restrictions. 3. "Suffolk County Only — Unregistered Stock": This legend provides a concise description, clearly stating that the stock is limited to Suffolk County alone and is not formally registered with any relevant authorities. Investors interested in stocks with Suffolk New York Statements or Legends on the certificates should carefully evaluate the restriction and seek legal advice if necessary. Understanding the limitations and implications of holding such stocks is crucial to make informed investment decisions and ensure compliance with local regulatory requirements.