An interest in securities is the asset of a client for whom an intermediary holds securities on an unallocated basis, commingled with the interests in securities of other clients. The distinction between securities and interests in securities is often overlooked in practice.
Interests in securities are always intangible. The only evidence of them comprises electronic records. Interests in securities confer property rights in relation to the underlying securities, and in some cases these underlying securities comprise tangible bearer instruments. However, this does not mean that interests in securities are themselves tangible. They are unallocated, and therefore do not attach to any tangible asset.
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Famous quotes containing the words interest in and/or interest:
“Take it all around, I was feeling ruther comfortable, on accounts of taking all this trouble for that gang, for not many would a done it. I wished the widow knowed about it. I judged she would be proud of me for helping these rapscallions, because rapscallions and dead beats is the kind the widow and good people takes the most interest in.”
—Mark Twain [Samuel Langhorne Clemens] (18351910)
“Social Security is a government program with a constituency made up of the old, the near old and those who hope or fear to grow old. After 215 years of trying, we have finally discovered a special interest that includes 100 percent of the population. Now we can vote ourselves rich.”
—P.J. (Patrick Jake)