No-Action Letter

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An individual or entity who is not certain whether a particular action would constitute a violation of the federal securities laws may request a "no-action letter" from the SEC staff. Most no-action letters describe the request, analyze the particular facts and circumstances involved, and discuss applicable laws and rules. If the staff grants the request for no action, the letters typically conclude that the SEC staff would not recommend that the SEC take enforcement action against the requester based on the facts and circumstances set forth in the no-action letter request.  Accordingly, the individual or entity should feel comfortable proceeding with the particular action.
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