Definition of "Person"
Chapters in this video
- 0:00 Why "person" is a massive exam trap
- 1:15 The broad definition: natural persons and legal entities
- 2:52 The trust exception: evidenced by a security
- 3:28 The permanently banned list: three exclusions
- 4:52 Governments as persons: the municipal bond gotcha
- 5:51 Pause-and-test: deceased billionaire vs. county
- 6:56 Seven-minute rapid-fire recap
What this video covers
- Why the USA intentionally defines person as any entity that can buy, sell, or issue securities, not just human beings
- The complete VIP list of natural persons and legal entities, including corporations, partnerships, joint-stock companies, and unincorporated organizations
- The trust exception: when beneficiary interests must be evidenced by a security for the trust to qualify as a person
- The three permanently excluded categories: deceased individuals, minors, and mentally incompetent individuals, and why each lacks legal capacity
- How the exam uses counterintuitive hypotheticals to test whether you know a minor is not a person but a government is
- Why state and local governments, including political subdivisions, count as persons when they issue municipal bonds
- The Stan-the-bouncer mental framework for quickly deciding whether any entity on the exam qualifies as a person
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. When you're ready to drill the topic, the full Series 63 course adds adaptive practice questions and spaced-repetition flashcards.