Letter Security

Letter Security - Letter Security is an un-registered stock or bond, called letter bond, sold directly by the issuer to the purchaser who sends a signed letter, called a 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 sell to the public for not qualifying for registration with the country's securities regulation agency. A security that is unregistered with the Security and Exchange Commission and therefore not sold publicly. These securities enter the portfolios of institutional investors through private placements.