A SEC rule that considers certain types of securities reclassifications as sales that are subject to the registration and prospectus requirements of theĀ Securities Act of 1933. The reclassifications include:

  • An issuer that substitutes one security for another.
  • A merger or consolidation in which the securities of one corporation are exchanged for the securities of another corporation.
  • A transfer of assets from one corporation to another.

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