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Rule 153: Definition of Preceded by a Prospectus

The phrase “preceded by a prospectus” in regards to any contractual requirement by one broker selling a security to another broker via a national security exchange, trading facility of a national securities association, or an alternative trading system, will be satisfied if the following conditions are met:

• Securities of the same class as those being sold between the two parties are trading on a national security exchange, trading facility of a national securities association, or an alternative trading system
• The registration statement relating to the securities is effective and not the subject of any administrative proceedings
• Neither the issuer, underwriter or the broker is subject is the subject of pending administrative proceedings in connection with the offering
• The issuer has filed or will file a prospectus that meets the requirements of Section 10(a)

 
 
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