CA Com Code Section 8302

(a)

Except as otherwise provided in subdivisions (b) and (c), a purchaser of a certificated or uncertificated security acquires all rights in the security that the transferor had or had power to transfer.

(b)

A purchaser of a limited interest acquires rights only to the extent of the interest purchased.

(c)

A purchaser of a certificated security who as a previous holder had notice of an adverse claim does not improve its position by taking from a protected purchaser.