WHAT IS A SECURITY?
This article gives a definition of "security." The term security means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral trust certificate, pre-organization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or mineral rights, or in general any interest or instrument commonly known as a security, or any certificate of interest or participation in, temporary or interim certificate for, receipt of, guarantee of, warrant or right to subscribe to or purchase, any of the foregoing. Among the more common instruments which have been held to be securities are certificates in a trust estate. Such certificates, though legally very different from corporate stock, are in practical effect very similar to shares of stock. If the stockholders of a corporation permit of a voluntary assessment on their stock, the receipts for money paid may be considered as securities. Similarly, a corporation which before maturity date of its outstanding convertible certificates offered the certificate holders new certificates with a new maturity date, was held to have issued new securities.
- DOI
- 10.2308/tar-7042422
- Volume
- 17 (3)
- Pages
- 303-308
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref