unregistered security

Restricted Security

A stock or right that one acquires through some means other than the open market. One may receive a restricted security through a merger or acquisition, private placement prior to an IPO, or sometimes through a stock option. A restricted security is not registered with the SEC and thus may not be sold publicly until registration has been made. It is less commonly called a letter security.

unregistered security

References in periodicals archive ?
Since then, 57 unregistered security firms have been dissolved and the process of dissolving another 52 is in progress.
He also urged the security companies for hiring ex-army and ex-police officials for better functioning of their systems, and assuring strict action against unregistered security agencies.
Abshure rejected the idea that the investments were loans, calling them instead a type of unregistered security.
In a letter dated October 22, 2007 to Jet Blue CEO David Barger, Local 32BJ expressed concerns about Summit Security's tainted track record - including a 2002 Department of State audit showing Summit employed unregistered security officers.
Last night, hundreds of Merseyside construction sites were visited as police searched for illegal immigrants, unregistered security guards and benefit frauds.
There are only two elements to this crime: a "sale" or an "offer to sell," and an unregistered security.
For the most part, if an unlicensed broker calls someone and is pitching an unregistered security, that is a big red flag," Galindo said.
Sale of an unmarketable asset, such as real estate, closely held stock or an unregistered security for which there is no available exemption permitting public sale.
He said: ``It relates to a licensing matter and there is also an inquiry into the possible use of unregistered security staff.
Under section 12(1), there is no liability for the sale of an unregistered security pursuant to an exemption.
Other charges include failure of the firm to maintain the required net capital while receiving customer funds, violations of the Securities and Exchange Commission's penny stock rules, failure to implement procedures to adequately supervise the activities of each registered representative and the sale of an unregistered security.