17 C.F.R. § 240.16a-9 Stock splits, stock dividends, and pro rata rights.
Title 17 - Commodity and Securities Exchanges
The following shall be exempt from section 16 of the Act: (a) The increase or decrease in the number of securities held as a result of a stock split or stock dividend applying equally to all securities of a class, including a stock dividend in which equity securities of a different issuer are distributed; and (b) The acquisition of rights, such as shareholder or pre-emptive rights, pursuant to a pro rata grant to all holders of the same class of equity securities registered under section 12 of the Act. Note: The exercise or sale of a pro rata right shall be reported pursuant to §240.16a–4 and the exercise shall be eligible for exemption from section 16(b) of the Act pursuant to §240.16b–6(b). [56 FR 7265, Feb. 21, 1991, as amended at 61 FR 30393, June 14, 1996]
Title 17: Commodity and Securities Exchanges
PART 240—GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF 1934
Registration of Government Securities Brokers and Government Securities Dealers
§ 240.16a-9 Stock splits, stock dividends, and pro rata rights.
