Practice question
An enterprise records investors' shares entirely through electronic records. An investor argues that the shares cannot be securities without paper certificates. Which answer is correct?
- Correct; only notarized paper instruments qualify.
- Correct; electronic records can evidence debt but never shares.
- Correct; shares become securities only after printing.
- Incorrect; electronic evidence automatically exempts the shares from all regulation.
- Incorrect; the statutory definition recognizes electronic instruments.
Legal references
- RA 8799, Sections 3.1 and 3.14; https://lawphil.net/statutes/repacts/ra2000/ra_8799_2000.html
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