# 17 C.F.R. § 260.3(4)-2 (2026): (4)-2 Definition of “distribution” in section 303(4) for certain transactions

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_3(4)_2

## Section

- **Citation:** 17 C.F.R. § 260.3(4)-2 (2026)
- **Heading:** (4)-2 Definition of “distribution” in section 303(4) for certain transactions
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 17 CFR: Commodity and Securities Exchanges / Chapter II: SECURITIES AND EXCHANGE COMMISSION / Part 260: GENERAL RULES AND REGULATIONS, TRUST INDENTURE ACT OF 1939 / § 260.3(4)-2: § 260.3(4)-2   Definition of “distribution” in section 303(4) for certain transactions.

## Text

A person, the chief part of the business of which consists in the purchase of the securities of any one issuer and/or its affiliate and in the sale of its own securities to furnish the proceeds with which to acquire the securities of such issuer and/or affiliate, is to be regarded as engaged in the distribution of the securities of such issuer and/or affiliate within the meaning of section 303(4).

## Nearby sections

- [17 C.F.R. § 260.0-1 (2026) § 260.0-1   Application of definitions contained in the act.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_0_1.md)
- [17 C.F.R. § 260.0-2 (2026) § 260.0-2   Definitions of terms used in the rules and regulations.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_0_2.md)
- [17 C.F.R. § 260.0-3 (2026) § 260.0-3   Definition of “rules and regulations” as used in certain sections of the Act.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_0_3.md)
- [17 C.F.R. § 260.0-4 (2026) § 260.0-4   Sequential numbering of documents filed with the Commission.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_0_4.md)
- [17 C.F.R. § 260.0-5 (2026) § 260.0-5   Business hours of the Commission.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_0_5.md)
- [17 C.F.R. § 260.0-6 (2026) § 260.0-6   Nondisclosure of information obtained in the course of examinations and investigations.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_0_6.md)
- [17 C.F.R. § 260.0-7 (2026) § 260.0-7   Small entities for purposes of the Regulatory Flexibility Act.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_0_7.md)
- [17 C.F.R. § 260.0-11 (2026) § 260.0-11   Liability for certain statements by issuers.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_0_11.md)
- [17 C.F.R. § 260.3(4)-1 (2026) § 260.3(4)-1   Definition of “commission from an underwriter or dealer not in excess of the usual and customary distributors' or sellers' commissions” in section 303(4), for certain transactions.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_3(4)_1.md)
- [17 C.F.R. § 260.3(4)-2 (2026) § 260.3(4)-2   Definition of “distribution” in section 303(4) for certain transactions.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_3(4)_2.md)
- [17 C.F.R. § 260.3(4)-3 (2026) § 260.3(4)-3   Definitions of “participates” and “participation” as used in section 303(4), in relation to certain transactions.](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_3(4)_3.md)
- [17 C.F.R. § 260.4a-1 (2026) § 260.4a-1   Exempted securities under section 304(a)(8).](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_4a_1.md)
- [17 C.F.R. § 260.4a-2 (2026) § 260.4a-2   Exempted securities under section 304(d).](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_4a_2.md)
- [17 C.F.R. § 260.4a-3 (2026) § 260.4a-3   Exempted securities under section 304(a)(9).](https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_4a_3.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T17_P260_S260_3(4)_2. Check the current official text before relying on it. Not legal advice.