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The Klodhoffer Corporation has assets amounting to $2,000,000 and needs additional capital to finance expansion of its marketing operation.The board of directors decides to promote an issue of $500,000 of common stock in order to raise capital.At the time the stock is issued, Klodhoffer has 250 shareholders owning common stock.If Klodhoffer is to trade the stock over the counter, does it need to register with the SEC?
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