A security is a financial asset that can be bought and sold—including stocks, bonds, debentures, municipal securities, futures, and options—and a securities transaction involves the purchase, sale, redemption, or other transfer of a security.
In New Jersey, securities are regulated under the New Jersey Uniform Securities Law (NJSA 49:3-47 et seq.), which governs the issuance, sale, and transfer of securities within the state. This law requires the registration of securities, as well as the licensing and oversight of broker-dealers, agents, investment advisers, and their representatives. The law also includes provisions to protect investors from fraudulent and manipulative practices in the securities market. Additionally, securities transactions in New Jersey are subject to federal laws and regulations enforced by the Securities and Exchange Commission (SEC), including the Securities Act of 1933 and the Securities Exchange Act of 1934, which provide for the registration of securities, reporting requirements for public companies, and rules against fraudulent activities in the securities markets. It is important for anyone involved in securities transactions in New Jersey to comply with both state and federal regulations, and those with specific questions or concerns may wish to consult with an attorney who specializes in securities law.