Intrastate Offering


DEFINITION of 'Intrastate Offering'

In the United States, a securities offering that can only be purchased in the state in which it is being issued. Because the offering does not include more than one state, it does not fall under the jurisdiction of the Securities and Exchange Commission and therefore does not need to be registered with the SEC. The offering does, however, fall under the jurisdiction of state regulators.

BREAKING DOWN 'Intrastate Offering'

In order to be exempt from SEC regulations, the offering must meet the following requirements: it must be sold only to residents of the state in which it is issued; the issuing company must be registered in the state; and the company must do a significant amount of business in the state. Some companies choose this type of issue because it is less expensive than registering with the SEC.

  1. Security

    A financial instrument that represents an ownership position ...
  2. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  3. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context ...
  4. New Issue

    A reference to a security that has been registered, issued and ...
  5. State Administrator

    The government agency or official who oversees and enforces state-level ...
  6. Securities Act Of 1933

    A federal piece of legislation enacted as a result of the market ...
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