Series 63: 3.1.7.1. Reasons For Issuing A Stop Order

Taken from our Series 63 Online Guide

3.1.7.1. Reasons for Issuing a Stop Order

A state securities administrator is allowed to issue a stop order as long as the order is in the public interest and one of the following conditions also applies:

The registration is materially incomplete, false, or misleading.

Any of the following persons have willfully violated state securities law:

» The filer of the registration statement

» The issuer or any officer, director, or partner of the issuer

» Any underwriter

Another state or federal regulator or court entered a stop order or injunction against the security within the past year.

The issuer’s business includes illegal activities.

The offering is fraudulent.

The offering involves unreasonable amounts of commissions and other compensation, or unreasonable amounts or kinds of options.

The security’s issuer applies for registration by notification, but the security is not eligible.

A security’s issuer applies for registration by coordination, but it does not forward amendments to the federal prospectus to the

Since you're reading about Series 63: 3.1.7.1. Reasons For Issuing A Stop Order, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 63
Please Enable Javascript
to view this content!