Tex.
Gov't Code Section 4005.023
Options
(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 (Scope of Exemption) 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 (Listed Securities); or(B)
quoted on the NASDAQ stock market and meets the requirements of Sections 4005.019 (Secondary Market Sales)(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.
Source:
Section 4005.023 — Options, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.4005.htm#4005.023 (accessed Jun. 5, 2024).
