# 17 CFR § 260.3(4)-1: (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

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-17-260.3(4)-1

## Section

- **Citation:** 17 CFR § 260.3(4)-1
- **Heading:** (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
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 17—Commodity and Securities Exchanges > CHAPTER II—SECURITIES AND EXCHANGE COMMISSION > PART 260—GENERAL RULES AND REGULATIONS, TRUST INDENTURE ACT OF 1939 > Rules Under Section 303

## Text

(a) The term commission in section 303(4) shall include such remuneration, commonly known as a spread, as may be received by a distributor or dealer as a consequence of reselling securities bought from an underwriter or dealer at a price below the offering price of such securities, where such resales afford the distributor or dealer a margin of profit not in excess of what is usual and customary in such transactions.
(b) The term commission from an underwriter or dealer in section 303(4) shall include commissions paid by an underwriter or dealer affiliated with the issuer.
(c) The term usual and customary distributors' or sellers' commission in section 303(4) shall mean a commission or remuneration, commonly known as a spread, paid to or received by any person selling securities either for his own account or for the account of others, which is not in excess of the amount usual and customary in the distribution and sale of issues of similar type and size, and not in excess of the amount allowed to other persons, if any, for comparable service in the distribution of the particular issue; but such term shall not include amounts paid to any person whose function is the management of the distribution of all of a substantial part of the particular issue, or who performs the functions normally performed by an underwriter or underwriting syndicate.

## Nearby sections

- [17 CFR § 260.0-1 § 260.0-1 Application of definitions contained in the act.](https://www.frixlaw.com/law-library/statutes/ecfr-17-260.0-1.md)
- [17 CFR § 260.0-2 § 260.0-2 Definitions of terms used in the rules and regulations.](https://www.frixlaw.com/law-library/statutes/ecfr-17-260.0-2.md)
- [17 CFR § 260.0-3 § 260.0-3 Definition of “rules and regulations” as used in certain sections of the Act.](https://www.frixlaw.com/law-library/statutes/ecfr-17-260.0-3.md)
- [17 CFR § 260.0-4 § 260.0-4 Sequential numbering of documents filed with the Commission.](https://www.frixlaw.com/law-library/statutes/ecfr-17-260.0-4.md)
- [17 CFR § 260.0-5 § 260.0-5 Business hours of the Commission.](https://www.frixlaw.com/law-library/statutes/ecfr-17-260.0-5.md)
- [17 CFR § 260.0-6 § 260.0-6 Nondisclosure of information obtained in the course of examinations and investigations.](https://www.frixlaw.com/law-library/statutes/ecfr-17-260.0-6.md)
- [17 CFR § 260.0-7 § 260.0-7 Small entities for purposes of the Regulatory Flexibility Act.](https://www.frixlaw.com/law-library/statutes/ecfr-17-260.0-7.md)
- [17 CFR § 260.0-11 § 260.0-11 Liability for certain statements by issuers.](https://www.frixlaw.com/law-library/statutes/ecfr-17-260.0-11.md)
- [17 CFR § 260.3(4)-1 § 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/ecfr-17-260.3(4)-1.md)
- [17 CFR § 260.3(4)-2 § 260.3(4)-2 Definition of “distribution” in section 303(4) for certain transactions.](https://www.frixlaw.com/law-library/statutes/ecfr-17-260.3(4)-2.md)
- [17 CFR § 260.3(4)-3 § 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/ecfr-17-260.3(4)-3.md)
- [17 CFR § 260.4a-1 § 260.4a-1 Exempted securities under section 304(a)(8).](https://www.frixlaw.com/law-library/statutes/ecfr-17-260.4a-1.md)
- [17 CFR § 260.4a-2 § 260.4a-2 Exempted securities under section 304(d).](https://www.frixlaw.com/law-library/statutes/ecfr-17-260.4a-2.md)
- [17 CFR § 260.4a-3 § 260.4a-3 Exempted securities under section 304(a)(9).](https://www.frixlaw.com/law-library/statutes/ecfr-17-260.4a-3.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-17-260.3(4)-1. Check the current official text before relying on it. Not legal advice.