§ 25130 Security Sale Qualification Rules

Corporations Code·California

AI SummaryVerified

This law says you can't sell a security (like a stock or bond) in the state unless it meets the state's qualification rules or is specifically exempt.

Key Takeaways

•You may only sell securities if they are qualified under the chapter or sections 25111/25113.
•If a court order under sections 25140 or 25143(a) is in place, you still can’t sell.
•Some securities are exempt or not subject to qualification, and those can be sold.

Example

John wants to sell his share of a small private company to his neighbor without any paperwork or approval.

Because John's sale is a "nonissuer transaction" and the security isn’t qualified or exempt, the law says John is breaking the rule and could be fined or stopped.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 25130 Security Sale Qualification Rules

It is unlawful for any person to offer or sell any security in this state in any nonissuer transaction unless it is qualified for such sale under this chapter or under Section 25111 or 25113 of Chapter 2 (commencing with Section 25110) of this part (and no order under Section 25140 or subdivision (a) of Section 25143 is in effect with respect to such qualification) or unless such security or transaction is exempted or not subject to qualification under Chapter 1 (commencing with Section 25100) of this part. (Amended by Stats. 1997, Ch. 391, Sec. 12. Effective January 1, 1998.)

Last verified: January 10, 2026

Key Terms

nonissuer transaction qualified exempted Section 25111 Section 25113 Section 25140 subdivision (a) of Section 25143 Chapter 1

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 25130.

§ 25130 Security Sale Qualification Rules

Corporations Code·California

AI SummaryVerified

§ 25130 Security Sale Qualification Rules

This law says you can't sell a security (like a stock or bond) in the state unless it meets the state's qualification rules or is specifically exempt.

Key Takeaways

•You may only sell securities if they are qualified under the chapter or sections 25111/25113.
•If a court order under sections 25140 or 25143(a) is in place, you still can’t sell.
•Some securities are exempt or not subject to qualification, and those can be sold.

Example

John wants to sell his share of a small private company to his neighbor without any paperwork or approval.

Because John's sale is a "nonissuer transaction" and the security isn’t qualified or exempt, the law says John is breaking the rule and could be fined or stopped.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 25130 Security Sale Qualification Rules

Last verified: January 10, 2026

Key Terms

nonissuer transaction qualified exempted Section 25111 Section 25113 Section 25140 subdivision (a) of Section 25143 Chapter 1

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 25130.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References