[SRS] Is a security a legally defined financial instrument?

**£Sir Severed** · November 18, 2022

After getting randomly pm'd by someone encouraging me to consider an investment and pulling teeth trying to get any substantial information out of them it has come to my attention that after two hours of discussing said investment that the person is completely clueless as to the reason why they think it is a good investment and too stubborn to admit they are wrong.

tldr;

Ripple (XRP) is a crytpo coin that is currently in court against the SEC who claims they illegally sold XRP as a security without following the proper regulations.

https://www.sec.gov/news/press-release/2020-338

Said person thinks that XRP will win the case and the price will skyrocket. At this point nobody can say whether or not this will happen.

HOWEVER it has been revealed that this person does not even understand what the case is about and doesn't understand that a financial security is a legally defined investment instrument as according to Investopedia:

Quote

The term "security" refers to a fungible, negotiable financial instrument that holds some type of monetary value. A security can represent ownership in a corporation in the form of stock, a creditor relationship with a governmental body or a corporation represented by owning that entity's bond; or rights to ownership as represented by an option.

In conclusion:

"Him" thinks the SEC brought XRP to court because they were selling a coin that was "insecure". He claims XRP is "ofc secure" and will win the case...which is entirely what the case isn't about. The case is a question of whether XRP illegally sold "a security" and if it was "ofc secure" that would mean they are found guilty and it would be a terrible investment.

Please set this young retard straight. He claims he made a grammar error however considering the above and how the two statements are in opposition to each other...he needs serious help.