Intrastate Offering

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Blue Sky Laws

    State regulations designed to protect investors against securities ...
  2. Over-The-Counter - OTC

    A security traded in some context other than on a formal exchange ...
  3. New Issue

    A reference to a security that has been registered, issued and ...
  4. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  5. Security

    A financial instrument that represents: an ownership position ...
  6. Securities Act Of 1933

    A federal piece of legislation enacted as a result of the market ...
Related Articles
  1. Interpreting A Company's IPO Prospectus ...
    Fundamental Analysis

    Interpreting A Company's IPO Prospectus ...

  2. Policing The Securities Market: An Overview ...
    Investing Basics

    Policing The Securities Market: An Overview ...

  3. How to Register Your Trademark
    Investing

    How to Register Your Trademark

  4. Filing A Patent
    Investing

    Filing A Patent

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center