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

Noncovered securities are not as common as covered securities because the majority of securities are now subject to federal regulations.

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non-correlated assets noncumulative