{"data":{"id":"us/17-cfr-240.16c-2","jurisdiction":"us","citation":"17 CFR 240.16c-2","heading":"c-2 Transactions effected in connection with a distribution.","body":"Any transaction shall be exempt from section 16(c) of the Act to the extent necessary to render lawful any sale made by or on behalf of a dealer in connection with a distribution of a substantial block of securities, where the sale is represented by an over-allotment in which the dealer is participating as a member of an underwriting group, or the dealer or a person acting on the dealer's behalf intends in good faith to offset such sale with a security to be acquired by or on behalf of the dealer as a participant in an underwriting, selling, or soliciting-dealer group of which the dealer is a member at the time of the sale, whether or not the security to be acquired is subject to a prior offering to existing security holders or some other class of persons.","path":["Title 17—Commodity and Securities Exchanges","CHAPTER II—SECURITIES AND EXCHANGE COMMISSION","PART 240—GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF 1934"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-17.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:31Z","sha256":"1baf23df2ce47aafc82e898fc63901ea6978a2c50ef93b8002f1d9195d4a5c11","source_id":"us-cfr","stale":true,"prev":"us/17-cfr-240.16c-1","next":"us/17-cfr-240.16c-3"},"notice":"GroundRules: Original legal text. Not legal advice."}