Section 240.16a-9 - Stock splits, stock dividends, and pro rata rightsThe following shall be exempt from section 16 of the Act:
(a) The increase or decrease in the number of securities held as a result of a stock split or stock dividend applying equally to all securities of a class, including a stock dividend in which equity securities of a different issuer are distributed; and(b) The acquisition of rights, such as shareholder or pre-emptive rights, pursuant to a pro rata grant to all holders of the same class of equity securities registered under section 12 of the Act.56 FR 7265, Feb. 21, 1991, as amended at 61 FR 30393, June 14, 1996 The exercise or sale of a pro rata right shall be reported pursuant to § 240.16a-4 and the exercise shall be eligible for exemption from section 16(b) of the Act pursuant to § 240.16b-6(b) .