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Title 17 Part 240 → §240.16a-9

Title 17 → Chapter II → Part 240 → §240.16a-9

Electronic Code of Federal Regulations e-CFR

Title 17 Part 240 → §240.16a-9

e-CFR data is current as of August 20, 2019

Title 17Chapter IIPart 240 → §240.16a-9


Title 17: Commodity and Securities Exchanges
PART 240—GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF 1934


§240.16a-9   Stock splits, stock dividends, and pro rata rights.

The following shall be exempt from section 16 of the Act:

(a) The increase or decrease in the number of securities held as a result of a stock split or stock dividend applying equally to all securities of a class, including a stock dividend in which equity securities of a different issuer are distributed; and

(b) The acquisition of rights, such as shareholder or pre-emptive rights, pursuant to a pro rata grant to all holders of the same class of equity securities registered under section 12 of the Act.

Note: The exercise or sale of a pro rata right shall be reported pursuant to §240.16a-4 and the exercise shall be eligible for exemption from section 16(b) of the Act pursuant to §240.16b-6(b).

[56 FR 7265, Feb. 21, 1991, as amended at 61 FR 30393, June 14, 1996]