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 Rhode Island, securities are regulated under the Rhode Island Uniform Securities Act (RIUSA), which is designed to protect investors from fraud and ensure fairness in the securities market. The RIUSA requires the registration of securities, as well as the licensing and oversight of broker-dealers, agents, investment advisers, and investment adviser representatives involved in the securities business within the state. The Act also includes provisions for the filing of sales and advertising literature, reporting requirements, and the investigation of securities fraud. Additionally, the Act grants the Rhode Island Department of Business Regulation the authority to enforce securities laws, including the power to issue orders and impose penalties for violations. It's important for anyone dealing with securities transactions in Rhode Island to comply with both state statutes and applicable federal laws, such as the Securities Act of 1933 and the Securities Exchange Act of 1934, which govern the registration and trading of securities at the federal level.