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.
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unregistered security

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
However, an unknown number of unregistered security companies and facilities need to be added to this number.
Jablonski, 62, of Castle Rock, Colo., were each sentenced to 10 years in prison after pleading guilty last November to one count each of securities fraud and selling an unregistered security.
Charges against Wichtendahl include three counts of mail fraud, three counts of wire fraud, four counts of securities fraud, four counts of selling an unregistered security and two counts of money laundering.
Since then, 57 unregistered security firms have been dissolved and the process of dissolving another 52 is in progress.
Ratner pleaded to selling an unregistered security and was sentenced to probation.
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.
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. (18) In this context, the terms "sale" and "sell" are defined in F.S.
"For the most part, if an unlicensed broker calls someone and is pitching an unregistered security, that is a big red flag," Galindo said.
The CAB probe began after investigating officers noticed how extraordinary amounts of cash were being chanelled through an unregistered security company set up by the pair.
* 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.