Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69W - Securities › Chapter 69W-500 - EXEMPT TRANSACTIONS › Section 69W-500.018 - Exemption for the Offer or Sale of a Single-Share Stock Certificate as a Gift

Current through Reg. 50, No. 138; July 16, 2024
(1) For the
				purposes of this rule, the term "single-share stock certificate retailer" means
				a person or business entity engaged in the business of framing or mounting
				single-share stock certificates for retail sale to purchasers as gifts,
				decorations, or novelty items. The term "single-share stock certificate
				retailer" also includes the employees of the person or business
				entity.
(2) The offer or sale of a
				single-share stock certificate by a single-share stock certificate retailer is
				subject to the registration requirements of sections
				517.07 and
				517.12(1),
				F.S.; however, because the dollar amount of the securities involved in these
				transactions is small and the character of the offering is limited, the Office
				finds that the application of the registration requirements of sections
				517.07 and
				517.12(1),
				F.S., to these transactions is not necessary for the public interest or for the
				protection of the investors, if conducted in accordance with this
				rule.
(3) Any single-share stock
				certificate retailer that claims entitlement to the exemption provided under
				this rule bears the burden of proving such entitlement in any proceeding
				brought under chapter 517, F.S.
(4)
				In order for an offer or sale of a single-share stock certificate by a
				single-share stock certificate retailer to qualify for an exemption from the
				registration requirements of sections
				517.07 and
				517.12(1),
				F.S., the offer or sale must comport with all of the following requirements:
(a) The single-share stock certificate
				retailer purchases the shares of stock through a registered dealer;
(b) The single-share stock certificate
				retailer markets, offers and sells the single-share stock certificate as a
				gift, decoration, or novelty item;
(c) The single-share stock certificate is
				mounted, matted, or framed;
(d)
				Each framed single-share stock certificate represents one share of stock in the
				underlying company;
(e) The
				single-share stock certificate retailer does not offer the single-share stock
				certificate for investment purposes;
(f) The single-share stock certificate
				retailer does not offer investment advice;
(g) The single-share stock certificate
				retailer does not directly or indirectly promote itself as a dealer;
(h) The single-share stock certificate
				retailer is not paid compensation solely for the single-share purchase
				transaction by the single-share stock certificate retailer;
(i) The single-share purchase transaction by
				the single-share stock certificate retailer and the transfer of ownership of
				the single-share certificate to the purchaser is completed within sixty (60)
				days after the purchase of the stock by the single-share stock certificate
				retailer; and,
(j) The offer and
				sale of the share by the single-share stock certificate retailer is not made
				for the direct or indirect promotion of any scheme or enterprise with the
				intent of violating or evading any provision of chapter 517,
				F.S.