Legend
Legend is a term used in the financial world to refer to a type of security that is not registered with the Securities and Exchange Commission (SEC). These securities are not subject to the same regulations as registered securities, and as such, they are often considered to be more risky investments. Legends are typically issued by private companies and are not traded on public exchanges. They are often used to raise capital for start-up companies or to finance mergers and acquisitions.
History of the Term
The term “legend” was first used in the financial world in the early 1900s. At the time, the term was used to refer to securities that were not registered with the SEC. These securities were often issued by private companies and were not traded on public exchanges. As such, they were considered to be more risky investments than registered securities.
In the 1930s, the SEC began to regulate the issuance of securities. This led to the creation of the Securities Act of 1933, which required all securities to be registered with the SEC. As a result, the term “legend” began to be used to refer to securities that were not registered with the SEC. These securities were often issued by private companies and were not traded on public exchanges.
Table of Comparisons
| Security Type | Registered with SEC? | Traded on Public Exchange? |
|---|---|---|
| Legend | No | No |
| Registered Security | Yes | Yes |
Summary
Legend is a term used in the financial world to refer to a type of security that is not registered with the Securities and Exchange Commission (SEC). These securities are not subject to the same regulations as registered securities, and as such, they are often considered to be more risky investments. Legends are typically issued by private companies and are not traded on public exchanges. For more information about legends, you can visit the SEC website or consult a financial advisor.
See Also
- Registered Security
- Securities Act of 1933
- Securities and Exchange Commission (SEC)
- Private Placement
- Initial Public Offering (IPO)
- Risk Tolerance
- Investment Banking
- Venture Capital
- Mergers and Acquisitions
- Equity Financing
