Cuyahoga Ohio Legend on Stock Certificate with Reference to Separate Document Restricting Transfer of Shares

State:
Multi-State
County:
Cuyahoga
Control #:
US-1058BG
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Word; 
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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). This Legend restricts the transfer of stock in accordance with the Articles of Incorporation or the Corporation's Bylaws or a Shareholder's Buy Sell Agreement.

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FAQ

A share of stock represents an ownership interest in a company, while a certificate of stock serves as physical proof of that ownership. Specifically, the Cuyahoga Ohio Legend on Stock Certificate with Reference to Separate Document Restricting Transfer of Shares may dictate how these shares are managed. Understanding this distinction can help you navigate the complexities of stock ownership and transfers more effectively.

A stock assignment separate from a certificate is a document that allows for the transfer of ownership without presenting the physical certificate. This document is often necessary when dealing with restrictions, such as the Cuyahoga Ohio Legend on Stock Certificate with Reference to Separate Document Restricting Transfer of Shares. By using an assignment, investors can facilitate smooth transfers while adhering to specific legal requirements.

A legend is a statement on a stock certificate noting restrictions on the transfer of the stock. A stock legend is typically put in place due to the requirements established by the Securities and Exchange Commission (SEC) for unregistered securities.

Legend Removal Period means, with respect to any securities, any period during which (a) a registration statement (including the Registration Statement) covering the resale of such securities is effective under the Securities Act, (b) such securities have been or are being sold pursuant to Rule 144 or Rule 144A and the

Restricted and unrestricted stocks are important components of corporate executive compensation packages. Restricted stocks have particular conditions that must be fulfilled before they can be transferred or sold, whereas unrestricted stocks have no such conditions. There are two types of restricted stocks.

If you receive stock from a company affiliate -- an executive officer, director or large investor -- the shares are restricted control securities. Under SEC Rule 144, you can lift stock restrictions by holding the shares for a set amount of time.

If you want to remove the restrictive legend, you should contact the company that issued the securitiesor the transfer agent for the company's securitiesto ask about the procedures for removing a legend. If you have a broker, you may want to ask your broker to help you.

Restrictive legends are stamped or printed on the certificate or instrument, face or reverse, of restricted securities and usually begin with These securities are not registered . . . . Restricted securities that are not represented by a certificate (generally referred to as book entry) will have a notation of

Restricted stock refers to unregistered shares of ownership in a corporation that are issued to corporate affiliates, such as executives and directors. Restricted stock is non-transferable and must be traded in compliance with special Securities and Exchange Commission (SEC) regulations.

Advantages. RSUs provide an incentive for employees to stay with a company for the long term and help it perform well so that their shares increase in value.

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Cuyahoga Ohio Legend on Stock Certificate with Reference to Separate Document Restricting Transfer of Shares