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Dictionary by pitch.dog
Funding instruments & exemptions · Core

Security

Also called: financial security

ELI5

A legally regulated investment instrument.

Used in conversation

“Whether the token is a security requires legal analysis.”

Definition

A financial instrument such as a share, note or investment contract subject to applicable securities law.

Here “Security” means: A financial instrument such as a share, note or investment contract subject to applicable securities law.

Pitch context

You will see “Security” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding instruments & exemptions.

Why it matters: In funding instruments & exemptions, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

  • SecurityThe same visible label “security” names different concepts.
  • CollateralThe search label “security” can route to both entries.
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Sources & evidence · 5

Direct term-level sources and supporting source families.