What is a Broker-Dealer? - Davis Polk & Wardwell
What is a Broker-Dealer? - Davis Polk & Wardwell
What is a Broker-Dealer? - Davis Polk & Wardwell
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<strong>What</strong> Is a <strong>Broker</strong>-<strong>Dealer</strong>? § 1A:8.5<br />
innocent parties who buy securities through unreg<strong>is</strong>tered brokerdealers.<br />
505<br />
[C] Section 29<br />
As d<strong>is</strong>cussed above, section 29(b) of the Exchange Act renders<br />
contracts involving a violation of section 15(a) void and provides for<br />
a private right of resc<strong>is</strong>sion for innocent parties. 506<br />
505. See, e.g., CAL. CORP. CODE § 25501.5 (2009); CONN. GEN. STAT. § 36b-29<br />
(2008); FLA. STAT. § 517.211 (2009); 815 ILCS 5/13 (2009); Tex. Sec. Act<br />
§ 33; N.J.S.A. 49:3-71(a)(2); Bramblewood Investors, Ltd. v. C&G Assocs.,<br />
262 N.J. Super. 96, 619 A.2d 1332 (June 26, 1992); Carrousel N., Inc. v.<br />
Chelsea Moore Co., 9 Ohio App. 3d 344, 460 N.E.2d 316 (1983);<br />
Brandenburg v. Miley Petroleum Exploration Co., 16 F.2d 933 (N.D.S.D.<br />
1926).<br />
506. See, e.g., DeHuff v. Digital, et al., Civil Action No. 3:08CV327TSL-JCS<br />
(S.D. M<strong>is</strong>s. Dec. 11, 2009); Eastside Church of Chr<strong>is</strong>t v. Nat’l Plan, Inc.,<br />
391 F.2d 357 (5th Cir.), cert. denied, 393 U.S. 913 (1968).<br />
(<strong>Broker</strong>-<strong>Dealer</strong> Reg., Rel. #9, 9/10)<br />
1A–113