§ 1205 Securities Sale Approval

This rule says the commissioner can give a permit to sell securities if they think the sale is fair, and can say no if they think it isn’t.

Key Takeaways

•The commissioner decides if a securities sale is fair, just, and equitable.
•If it’s fair, the commissioner issues a permit that says how much can be sold and under what conditions.
•If it’s not fair, the commissioner must deny the application.

Example

A company wants to sell shares of its stock to the public.

The commissioner looks at the offer. If they decide the price and terms are fair, they hand out a permit so the company can sell the shares. If they think the deal is unfair, they refuse the permit and the company can’t sell the shares.

If the commissioner finds that the proposed sale of securities is fair, just, and equitable, he or she shall issue to the applicant a permit authorizing it to offer and sell the securities in such amount and upon such terms and conditions as he or she may provide in the permit. If the commissioner finds otherwise, he or she shall deny the application. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

This rule says the commissioner can give a permit to sell securities if they think the sale is fair, and can say no if they think it isn’t.

Key Takeaways

•The commissioner decides if a securities sale is fair, just, and equitable.
•If it’s fair, the commissioner issues a permit that says how much can be sold and under what conditions.
•If it’s not fair, the commissioner must deny the application.

Example

A company wants to sell shares of its stock to the public.

Key Takeaways

Example

Key Terms

References

§ 1205 Securities Sale Approval

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References