§ 240.12a-7. Exemption of stock contained in standardized market baskets from section 12(a) of the Act.
181 words·~1 min read·
/us/cfr/t17/s§ 240.12a-7·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Any component stock of a standardized market basket shall be exempt from the registration requirement of section 12(a) of the Act, solely for the purpose of inclusion in a standardized market basket, provided that all of the following terms and conditions are met:
(1)The standardized market basket has been duly approved by the Commission for listing on a national securities exchange pursuant to the requirements of section 19(b) of the Act; and
(2)The stock is an NMS stock as defined in § 242.600 of this chapter and is either:
(i)Listed and registered for trading on a national securities exchange by the issuer or
(ii)Quoted on the National Association of Securities Dealers Automated Quotation System;
(b)When used in this rule, the term standardized market basket means a group of at least 100 stocks purchased or sold in a single execution and at a single trading location with physical delivery and transfer of ownership of each component stock resulting from such execution. \[56 FR 28322, June 20, 1991, as amended at 70 FR 37618, June 29, 2005\]