Question

A company is going to be performing an initial offering. The offering will be limited to one state. The company has no intention of registering at the federal level. How would this offering typically be registered according the Uniform Securities Act?
[A] This company should go through the coordination process in order to register.
[B] This company should perform a notice filing with the state in which the offering is taking place.
[C] This company should go through the qualification process in order to register.
[D] This company should file with the state in which the offering is taking place.

Answer 1

Answer:

C) This company should go through the qualification process in order to register.

Explanation:

Since this company will only offer its new shares in one state, then it can avoid the registration processes related to the federal level (Uniform Securities Act). The state level registration process is the qualification process. So this is the only process the company must follow and it will avoid the coordination process and the notice filing.