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:
“You will think me very pedantic, gentlemen, but holiday though it may be, I have not the smallest interest in any holiday, except as it celebrates real and not pretended joys.”
—Ralph Waldo Emerson (1803–1882)
“We women are not made for governing and if we are good women, we must dislike these masculine occupations; but there are times which force one to take interest in them mal gré bon gré, and I do, of course, intensely.”
—Victoria (1819–1901)