Laws & RegulationsQuestion 31 of 100
The definition of 'sale' or 'offer to sell' under the Uniform Securities Act generally includes:
a.A gift of assessable stock
b.A bona fide pledge of securities as loan collateral
c.A stock dividend where no consideration is given
d.A bona fide gift of nonassessable stock
Explanation
The Act treats a gift of assessable stock as a sale because the recipient may owe future assessments, constituting value. Bona fide gifts of nonassessable stock, stock dividends, and collateral pledges are generally not sales. These definitional nuances affect when the Act applies.
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