# Wis. Stat. § 408.103: Rules for determining whether certain obligations and interests are securities or financial assets

> Wisconsin · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.103

## Section

- **Citation:** Wis. Stat. § 408.103
- **Heading:** Rules for determining whether certain obligations and interests are securities or financial assets
- **Jurisdiction:** Wisconsin
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** WI Code / Chapter 408 / Section 408.103

## Text

(1) A share or similar equity interest issued by a corporation, business trust, joint stock company or similar entity is a security.

(2) An “investment company security” is a security. In this chapter, “investment company security” means a share or similar equity interest issued by an entity that is registered as an investment company under the federal investment company laws, an interest in a unit investment trust that is so registered, or a face-amount certificate issued by a face-amount certificate company that is so registered. “Investment company security” does not include an insurance policy or endowment policy or annuity contract issued by an insurance company.

(3) An interest in a partnership or limited liability company is not a security unless it is dealt in or traded on securities exchanges or in securities markets, its terms expressly provide that it is a security governed by this chapter or it is an investment company security. However, an interest in a partnership or limited liability company is a financial asset if it is held in a securities account.

(4) A writing that is a security certificate is governed by this chapter and not by ch. 403 , even though it also meets the requirements of that chapter. However, a negotiable instrument governed by ch. 403 is a financial asset if it is held in a securities account.

(5) An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.

(6) A commodity contract, as defined in s. 409.102 (1) (dm) , is not a security or a financial asset.

(7) A document of title, as defined in s. 401.201 (2) (i) , is not a financial asset unless s. 408.102 (1) (i) 1. c. applies.

History: 1997 a. 297 ; 2001 a. 10 ; 2009 a. 322 ; 2011 a. 257 .

## Nearby sections

- [Wis. Stat. § 408.101 Short title.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.101.md)
- [Wis. Stat. § 408.102 Definitions.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.102.md)
- [Wis. Stat. § 408.103 Rules for determining whether certain obligations and interests are securities or financial assets.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.103.md)
- [Wis. Stat. § 408.104 Acquisition of security or financial asset or interest therein.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.104.md)
- [Wis. Stat. § 408.105 Notice of adverse claim.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.105.md)
- [Wis. Stat. § 408.106 Control.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.106.md)
- [Wis. Stat. § 408.107 Whether endorsement, instruction or entitlement order is effective.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.107.md)
- [Wis. Stat. § 408.108 Warranties in direct holding.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.108.md)
- [Wis. Stat. § 408.109 Warranties in indirect holding.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.109.md)
- [Wis. Stat. § 408.110 Applicability; choice of law.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.110.md)
- [Wis. Stat. § 408.111 Clearing corporation rules.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.111.md)
- [Wis. Stat. § 408.112 Creditor’s legal process.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.112.md)
- [Wis. Stat. § 408.113 Statute of frauds inapplicable.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.113.md)
- [Wis. Stat. § 408.114 Evidentiary rules concerning certificated securities.](https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.114.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_WI_C408_S408.103. Check the current official text before relying on it. Not legal advice.