Question of the Week

If ABC corporation, which is listed on the New York Stock Exchange, plans to distribute a stock dividend to current shareholders, which of the following statements is true?

A) ABC must file a registration by qualification with the Administrator
B) ABC must file a registration by coordination with the Administrator
C) ABC must file a registration by filing with the Administrator
D) ABC does not have to file any registration with the Administrator because the transaction is exempt.

Answer: The correct answer is d).

This transaction would qualify under two different exemptions – the first because it is an exchange listed stock and the second because no commissions or other compensation is involved with a stock dividend.