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.
Read more about Interest In Securities: Legal Consequences of Being Intangible
Famous quotes containing the words interest in and/or interest:
“Indiana was really, I suppose, a Democratic State. It has always been put down in the book as a state that might be carried by a close and careful and perfect organization and a great deal of—[from audience: “soap”Ma reference to purchased votes, the word being followed by laughter].
I see reporters here, and therefore I will simply say that everybody showed a great deal of interest in the occasion, and distributed tracts and political documents all through the country.”
—Chester A. Arthur (1829–1886)
“I proclaim that might is right, justice, the interest of the stronger.”
—Plato (c. 427–347 B.C.)