Tex. Gov't Code § 4005.023 · Subchapter A. EXEMPT TRANSACTIONS
OPTIONS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) In this section, "option" means and includes a put, call, straddle, or other option or privilege of buying from another person or selling to another person a specified number of securities at a specified price, without being obligated to do so, on or before a specified date. The term does not include an option or privilege that by its terms may terminate before the specified date on the occurrence of a specified event.
(b) The exemption provided by Section 4005.001 applies to a sale of an option by or through a registered dealer if, at the time of the sale:
(1) the performance of the terms of the option is guaranteed by a broker-dealer registered under the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.);
(2) the guaranty and broker-dealer described by Subdivision (1) are in compliance with any requirements or rules adopted or approved by the board;
(3) the option is not sold by or for the benefit of the issuer of the security that may be purchased or sold on exercise of the option;
(4) the security that may be purchased or sold on exercise of the option is either:
(A) exempted under Section 4005.054; or
(B) quoted on the NASDAQ stock market and meets the requirements of Sections 4005.019(b)(1), (6), (7), and (8); and
(5) the sale is not directly or indirectly for the purposes of providing or furthering a scheme to violate or evade this title.
Notes and commentary — not statutory text
History
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/GV/htm/GV.4005.htm
- Text hash
- sha256 832f5afdc9b742055916aa6dd2453816073f8f3ca2c50313d1a37deed6f401bb
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
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