SIE Exam Question 965: Answer and Explanation

Question: 965

Which of the following is a statement on a stock certificate noting restrictions on the transfer of the stock? It contains language informing the holder of the restrictions on the sale or transfer of the unregistered security.

• A. Declaration
• B. Legend
• C. Medallion
• D. Warranty

Correct Answer: B

Explanation:

A legend is a statement on a stock certificate noting restrictions on the transfer of the stock. It contains language informing the holder of the restrictions on the sale or transfer of the unregistered security.