Letter security

Letter security,

Definition of Letter security:

  1. Un-registered stock or bond (called letter bond) sold directly by the issuer to the purchaser who sends a signed letter (called letter of intent) to the regulatory authorities that he or she is buying it for long-term investment only and will not resell it for a specified number of years. Letter securities cannot be sold to the public for not qualifying for registration with the countrys securities regulation agency.

Meaning of Letter security & Letter security Definition