Stock Brokers Monopoly

Under article 1 of the Law of January 22, 1988 relating to stock exchanges, "negotiations" (brokerage transactions) and "sales" (direct or indirect) of listed securities must be made by a "societe de bourse" (stock broker). The law of February 14, 1996 extends this right to banks and to entities having their registered office in the European Economic Area.

There are several exceptions to the requirement that sales be made by a broker. These include :

(i) sales between individuals; or

(ii) sales between two companies, one of which holds at least 20% of the capital stock of the other; or

(iii) sales which are part of an agreement other than a sale and which are necessary to such agreement (e.g., a merger); or