In This Chapter
• Six key securities laws
• Federal regulation
• State regulation
• Rights and liabilities of shareholders
The official definition of securities contained in the Securities Exchange Act of 1934 begins with “any note, stock, treasury stock, bond …” and continues on for a long list of options. The easier definition is that securities are an investment instrument, other than an insurance policy or fixed annuity, issued by a corporation, government, or other organization, which offers evidence of debt or equity. Stock in a Fortune 500 Company is an example of an equity security. A mortgage would be an example of a security that evidences debt. This chapter will review the major laws that apply to this area of law. ...