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Difficulty: MediumState Securities Regulators and Blue Sky Laws

An issuer files a registration statement with the Securities and Exchange Commission (SEC) under the Securities Act of 1933 for a new public offering of equity securities and intends to offer the securities in multiple states. Under state Blue Sky laws (the Uniform Securities Act), which method of state registration allows the state registration to become effective simultaneously with the federal registration?

  1. Registration by coordinationAnswer
  2. B
    Registration by qualification
  3. C
    Notice filing
  4. D
    Registration by notification

Answer

Registration by coordination is the correct procedure under state Blue Sky laws for securities registered simultaneously with the SEC under the Securities Act of 1933.
Registration by coordination is the statutory process used under state Blue Sky laws when an issuer registers an issue with the SEC under the Securities Act of 1933. By submitting copies of the federal prospectus to state regulators, state registration becomes effective at the exact same time as federal effectiveness.

Step-by-Step Solution

1
Identify the issuer's federal registration status
The issuer is currently registering a new equity security with the SEC under the Securities Act of 1933.
Federal registration under the 1933 Act dictates which state registration options under the Uniform Securities Act are available.
2
Determine the appropriate state registration method for simultaneous SEC filings
Registration by coordination is specifically designed to allow state registration to become effective concurrently with federal registration.
Under state Blue Sky laws, submitting the federal prospectus alongside state filings enables coordinated simultaneous effective dates.

Key Concept

State Registration of Securities via Coordination under Blue Sky Laws

Practice More

Review the specific conditions under which a State Securities Administrator can issue a stop order against a registration statement filed by coordination.
Estimated Time:1m 15s
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Topics

State Securities Regulators and Blue Sky Laws

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