Covered Security
A class of securities, created by the NSIMA, that enjoys federally imposed exemptions from state restrictions and regulations. Most stocks trading in the US are covered securities. Investopedia Says:
Also known as a 'federal covered security,' its purpose was to standardize security regulations and filings across the United States. Rather than having individual companies register, file, and comply with the differing regulations in all the states, a uniform set of rules was created. Related Terms:
NSMIA
SEC
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