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Unformatted text preview: and prospectus on the 300,000 new shares to be issued as a result of the split? Explain. Sample Answer: No. Under federal securities law, a stock split is exempt from registration re-quirements. This is because no sale of stock is involved. The existing shares are merely being split, and no consideration is received by the corporation for the additional shares created....
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- Spring '11
- Business Law