The Meaning of Securities
Learn about what distinguishes securities from other investment instruments.
In this lesson, we’ll learn about what distinguishes securities from other investment instruments.
I. What is a Security?
What is a security? is a foundational question in securities regulation. It’s important because the securities laws regulate only transactions involving securities. That means that if a transaction doesn’t involve a security, then securities laws and their protections don’t apply.
The Securities Act and the Exchange Act don’t provide a functional definition of a security....