Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 101

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 101
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    broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quality of the
    penny stock to be purchased.

In
order to approve a person’s account for transactions in penny stocks, the broker or dealer must:

    ●
    Obtain
    financial information and investment experience objectives of the person; and

    ●
    Make
    a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge
    and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.

27

The
broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the Commission relating
to the penny stock market, which, in highlight form:

    ●
    Sets
    forth the basis on which the broker or dealer made the suitability determination; and

    ●
    That
    the broker or dealer received a signed, written agreement from the investor prior to the transaction.

Generally,
brokers may be less willing to execute transactions in securities subject to the “penny stock” rules. This may make it more
difficult for investors to dispose of our common stock and cause a decline in the market value of our stock.

Disclosure
also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the commissions
payable to both the broker-dealer and the registered representative, current quotations for the securities and the rights and remedies
available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent
price information for the penny stock held in the account and information on the limited market in penny stocks.

State
securities laws may limit secondary trading, which may restrict the states in which and conditions under which you can sell the shares
offered by this prospectus.

Secondary
trading in common stock may not be possible in any state until the common stock is qualified for sale under the applicable securities
laws of the state or there is confirmation that an exemption, such as listing in certain recognized securities manuals, is available
for secondary trading in the state. If we fail to register or qualify, or to obtain or verify an exemption for the secondary trading
of, the common stock in any particular state, the common stock could not be offered or sold to, or purchased by, a resident of that state.
In the event that a significant number of states refuse to permit secondary trading in