408.103 Rules for determining whether certain obligations and interests are securities or financial assets.

307 words·~1 min read·/wi/chapter-408/408-103-2

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)A share or similar equity interest issued by a corporation, business trust, joint stock company or similar entity is a security.

(2)An “investment company security” is a security. In this chapter, “investment company security” means a share or similar equity interest issued by an entity that is registered as an investment company under the federal investment company laws, an interest in a unit investment trust that is so registered, or a face-amount certificate issued by a face-amount certificate company that is so registered. “Investment company security” does not include an insurance policy or endowment policy or annuity contract issued by an insurance company.

(3)An interest in a partnership or limited liability company is not a security unless it is dealt in or traded on securities exchanges or in securities markets, its terms expressly provide that it is a security governed by this chapter or it is an investment company security. However, an interest in a partnership or limited liability company is a financial asset if it is held in a securities account.

(4)A writing that is a security certificate is governed by this chapter and not by ch. 403 , even though it also meets the requirements of that chapter. However, a negotiable instrument governed by ch. 403 is a financial asset if it is held in a securities account.

(5)An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.

(6)A commodity contract, as defined in s. 409.102

(dm), is not a security or a financial asset.

(7)A document of title, as defined in s. 401.201

(i), is not a financial asset unless s. 408.102

(i)1. c. applies.