State Intermediary Licensing Requirements for Participation in Offerings


Summary

This practice note discusses state requirements for intermediary licenses for participation in securities offerings. In the offer and sale of securities, intermediary is the functional descriptor for brokers, dealers, representatives, agents, salespersons, and any person who, by their activities, effects or facilitates transactions. In capital formation, intermediaries play a critical role in any distribution of securities into the hands of investors, without regard to the public or private nature of the offering, as for example, in the identification and solicitation of potential qualified investors. Formally or informally, intermediaries engage in activities which are intended to bring about securities transactions, and for which they are compensated in some form.