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Code of Federal Regulations Title 17. Commodity and Securities Exchanges § 17.270.17a–5 Pro rata distribution neither “sale” nor “purchase.”

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When a company makes a pro rata distribution in cash or in kind among its common stockholders without giving any election to any stockholder as to the specific assets which such stockholders shall receive, such distribution shall not be deemed to involve a sale to or a purchase from such distributing company as those terms are used in section 17(a) of the Act.

Cite this article: FindLaw.com - Code of Federal Regulations Title 17. Commodity and Securities Exchanges § 17.270.17a–5 Pro rata distribution neither “sale” nor “purchase.” - last updated October 02, 2022 | https://codes.findlaw.com/cfr/title-17-commodity-and-securities-exchanges/cfr-sect-17-270-17a-5.html


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