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Covered Security
(redirected from Federal covered security)

   Also found in: Wikipedia 0.02 sec.
Covered Security
A security that has special exemption from state and local regulations. Thus, a covered security is only subject to federal regulations. This type of security was created in 1996 by the National Securities Markets Improvement Act, which was intended to standardize regulations for securities trading throughout the United States. As a result, most stocks traded in America are covered securities.


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