investment security

investment security
A security dealt in upon securities exchanges or markets or commonly recognized in any area in which it is issued or dealt in as a medium for investment, evidencing a share, participation, or other interest in property, or in an enterprise, or evidencing an obligation of the issuer. UCC § 8-102(1)(a). A security normally traded on securities markets, as distinguished from ordinary commercial paper. This distinction is of importance in the case of bonds of private or public bodies, since, prior to the enactment of the Uniform Commercial Code in a particular jurisdiction, such bonds were subject to the requirements of the Negotiable Instruments Act, while, under the code, such bonds are subject to the code article dealing with "investment securities." 12 Am J2d Bonds § 49.

Ballentine's law dictionary. . 1998.

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