Sale of business doctrine

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Sale of business doctrine

Definition

A notion that had been adopted by many federal courts, declaring that the sale of 100 percent of a closely-held corporation’s stock was exempt from federal securities laws. This doctrine was rejected by the United States Supreme Court in Landreth Timber Company v. Landreth, stating that the sale of traditional stock is considered a security.

Related rules

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— Landreth Timber Co. v. Landreth

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