The term "security" is vitally important to the USA; therefore, you will find the exact definition from the USA below. You are strongly encouraged to memorize this definition for the exam.
As defined by the Uniform Securities Act, asecurity is any of the following:
- a note;
- treasury stock;
- security future;
- evidence of indebtedness;
- certificate of interest or
- participation in a 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 other mineral rights;
- put, call, straddle, option, or privilege on a security,
- certificate of deposit, or
- group or index of securities, including an interest therein or based on the value thereof; put, call, straddle, option, or
- privilege entered into on a national securities exchange relating to foreign currency; or, in general,
- an interest or instrument commonly known as a "security"; or
- a certificate of interest or participation in,
- temporary or interim certificate for, receipt for, guarantee of, or
- warrant or right to subscribe to or purchase any of the foregoing.
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