If a privately owned company having 200,000 shares outstanding registers the sale of 50,000 new shares under the 1933 Act and is subject to the reporting requirements of the 1934 Act, the 50,000 shares must be registered under the 1934 Act.

Question

Quizplus · Accepted Answer

The 1934 Act requires registration of securities traded on national exchanges and periodic reporting, but it does not require registration of new shares issued by a company already subject to its reporting requirements.

If a Privately Owned Company Having 200,000 Shares Outstanding Registers