§ 25101 Exempt Securities Listing

This law says that securities from companies that already have listed securities on a certified national exchange are usually exempt from Section 25130, but that exemption disappears if the securities are offered under a registration or Regulation A and raise more than $50,000.

Key Takeaways

•Securities from a company that already has a listed security on a certified exchange are exempt from Section 25130.
•The exemption does NOT apply if the securities are offered under a registration or Regulation A and the total offering price is more than $50,000.
•The rule only changes how Section 25130 treats those securities; it doesn’t affect other laws.

Example

A tech company whose stock is listed on a certified national exchange issues new shares to investors. Because the company already has a listed security, those new shares are exempt from Section 25130. However, if the same company runs a Regulation A offering and sells $60,000 worth of those new shares, the exemption no longer applies.

The first part (a) lets the new shares be exempt because the company is already listed. The second part (b) says that if the offering is done under Regulation A and the total price is over $50,000, the exemption is taken away.

The following securities are exempt from the provisions of Section 25130: (a) Any security issued by a person that is the issuer of any security listed on a national securities exchange, if the exchange is certified by rule or order of the commissioner. (b) The exemption provided by subdivision (a) does not apply to securities offered pursuant to a registration under the Securities Act of 1933 or pursuant to the exemption afforded by Regulation A under that act if the aggregate offering price of the securities offered pursuant to that exemption exceeds fifty thousand dollars ($50,000). (Amended by Stats. 2009, Ch. 131, Sec. 10. (AB 991) Effective January 1, 2010.)

Key Takeaways

•Securities from a company that already has a listed security on a certified exchange are exempt from Section 25130.
•The exemption does NOT apply if the securities are offered under a registration or Regulation A and the total offering price is more than $50,000.
•The rule only changes how Section 25130 treats those securities; it doesn’t affect other laws.

Key Takeaways

Example

Key Terms

References

§ 25101 Exempt Securities Listing

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References