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What Constitutes a 'Security'?

The definition of what constitutes a "security" has broadened and changed dramatically over the years under both case and statutory law. Attorneys concentrating in securities law (whether by virtue of litigation or transactional work), as well as governmental and self-regulatory organizations, ranging from the Securities and Exchange Commission (SEC) to the National Association of Securities Dealers (NASD) to various exchanges, have been dealing with the increasingly complex question of what constitutes a "security." This question is often posed to resolve particular claims in specialized venues, testing the acumen of even the most sophisticated securities practitioners and industry members. This two-part article describes the transfer process and offers sample forms as examples.

15 minute read June 22, 2004 at 11:32 AM
By
Terri L. Weiss
What Constitutes a 'Security'?

The definition of what constitutes a “security” has broadened and changed dramatically over the years under both case and statutory law.

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