Question

All of the following are defined as either a "sale" or an "offer to sell" common stock of an issuer EXCEPT:

A. any offer to sell the common stock for value
B. any solicitation of an offer to buy the common stock for value
C. the gift of the common stock to an employee of the issuer
D. the sale of a bond with detachable warrants to buy the common stock of that issuer

Answer 1

The correct answer is letter "C": the gift of the common stock to an employee of the issuer.

Step-by-step explanation:

Under the Uniform Securities Act a "sale" or "offer to sell" is any offer to sell the common stock for value or any request of an offer to purchase the common stock at a certain value. In that case, gifts of common stocks from any party to another will not fall under this category since in the exchange there is no economic value dealt that made the transaction happen.