Website Heading

CALIFORNIA CORPORATE & SECURITIES LAW

Options Trading Without The Issuer’s Consent

In yesterday’s post, I discussed secondary trading of standardized options and noted that the SEC has taken the position that in the case of standardized options the issuer is The Options Clearing Corporation.  This leads to the question of whether the issuer of an underlying security has any say in deciding if there will be secondary trading in standardized options to acquire its security. …

Share on:

Standardized Options – Who’s Your Daddy?

A securities call option is a derivative security representing the right, but not the obligation, to acquire an underlying security.  When the person selling an option is also the issuer of the underlying security, then there is no question that that person is also the issuer of the option.  See Section 2(a)(4) of the Securities Act of 1933…

Share on: