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Security
A security is a financial instrument or investment that may represent ownership, debt, a financial claim or other investment rights. Shares and bonds are common examples, although the precise legal definition of a security varies between jurisdictions.
Why it matters to you
A token does not stop being subject to securities laws simply because it exists on a blockchain. If a token qualifies as a security under the applicable law, its issuance, sale and trading may be subject to specific regulatory requirements.
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