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Under the Securities Act of 1933, any offer to sell securities must either be registered with the SEC or meet an exemption. Issuers and broker-dealers most commonly conduct private placements under Regulation D of the Securities Act of 1933, which provides three exemptions from registration.
The act?also known as the "Truth in Securities" law, the 1933 Act, and the Federal Securities Act?requires that investors receive financial information from securities being offered for public sale. This means that prior to going public, companies have to submit information that is readily available to investors.
Section 33. Civil Liability with Respect to Issuance or Sale of a Security. Section 33-1. Civil Liability of Investment Advisers and Investment Adviser Representatives.
A private placement is an offering of unregistered securities to a limited pool of investors. In a private placement, a company sells shares of stock in the company or other interest in the company, such as warrants or bonds, in exchange for cash.
Rule 701 limits the amount of securities that may be sold to the greater of: (a) $1,000,000, (b) 15% of the total assets of the issuer (or of the issuer's parent if the issuer is a wholly-owned subsidiary and the parent guarantees the securities offered); or (c) 15% of the total outstanding amount of the class of ...
Texas' Blue Sky Laws, similar to such laws across the country, are designed to protect investors from fraudulent securities transactions within the state. They ensure an environment of transparency and trust in the securities industry, safeguarding the interests of investors.
The Texas Securities Act is the state law regarding the regulation of the securities industry in Texas. The Act provides for the registration of securities offered or sold in Texas, and of firms and individuals who sell securities or render investment advice in the state.
Violations of the Act include such activities as: illegal sales of unregistered securities; sales of securities or the rendering of investment advice by unregistered persons; or fraud committed in connection with the sale of securities.