noncovered security

Definition

A security with limited possibility that is not subject to the federal regulations and so not covered by Regulation D. Instead, such security would be covered under the Restoring American Financial Stability Act 2010- a financial reform bill that aims to address the failures of American corporations that led to the financial crisis in 2008. The bill has however been criticized for making it more difficult for small companies to obtain capital from informal (angel) investors.

Use noncovered security in a sentence

It was noncovered security and we were pretty bummed because we really needed to have something to rely on in the future.

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You should always try to make sure that you have done all of your research before getting involved with a noncovered security

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Be careful when dealing with a noncovered security, as their regulations are slightly different, and many folks don't know about how to manage them effectively.

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non-correlated assets noncumulative