Security Entitlement
/ˈsɪkjʊrɪti ɛnˈtaɪtlmənt/
Definitions
- (n.) A legal right or interest granted to a person or entity in respect to a security, such as shares, bonds, or other financial instruments.
The investor held a security entitlement to the shares registered in the brokerage account.
- (n.) A claim against a financial intermediary arising from a securities account under securities law, reflecting the person’s ownership of financial assets.
Under the Uniform Commercial Code, a security entitlement evidences a person's property interest in securities held by a broker.
Forms
- security entitlement
- security entitlements
Related terms
See also
Commentary
The term is especially significant in the context of intermediated securities systems where the legal rights to securities are reflected as entitlements against intermediaries, rather than direct property rights in the underlying instruments.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.