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Alternate cryptocurrencies => Altcoin Discussion => Topic started by: LJOSS on May 19, 2019, 08:15:57 PM



Title: Equity Tokens vs Security Tokens
Post by: LJOSS on May 19, 2019, 08:15:57 PM
Hi everybody,

A question about Security and Equity tokens:
In USA, what are the definitions given by the Securities and Exchange Commission for Equity Token and Security Token?

i.e. from a legal point of view, is an Equity token a Security Token, Security Tokens being a general term including both Equity tokens, Debt tokens ?

Many thanks for your replies / comments.

LJOSS


Title: Re: Equity Tokens vs Security Tokens
Post by: mu_enrico on May 20, 2019, 04:55:48 AM
You could remove "tokens," and all the definition in contemporary finance can be applied.

Quote
a security is a tradable financial asset of any kind.
Securities are broadly categorized into:
debt securities (e.g., banknotes, bonds and debentures)
equity securities (e.g., common stocks)
derivatives (e.g., forwards, futures, options, and swaps).
Source: Wikipedia (https://en.wikipedia.org/wiki/Security_(finance))

The word "token" only shows that these financial assets are tokenized (or using blockchain technology).


Title: Re: Equity Tokens vs Security Tokens
Post by: LJOSS on May 20, 2019, 06:26:27 AM
You could remove "tokens," and all the definition in contemporary finance can be applied.

Quote
a security is a tradable financial asset of any kind.
Securities are broadly categorized into:
debt securities (e.g., banknotes, bonds and debentures)
equity securities (e.g., common stocks)
derivatives (e.g., forwards, futures, options, and swaps).
Source: Wikipedia (https://en.wikipedia.org/wiki/Security_(finance))

The word "token" only shows that these financial assets are tokenized (or using blockchain technology).

Many thanks Enrico