Covered security


In U.S. law, a covered security may refer to two categories of securities:
The latter category was created in an amendment to section 6045 of the Internal Revenue Code in of the Energy Improvement and Extension Act of 2008. The law refers to any security in this category as "specified security", and defines such securities to include stock in a corporation, notes, bonds, debentures and other evidence of indebtedness, commodities, commodity contracts or derivatives, and any other financial instrument for which the Secretary of the Treasury or his delegate determines that the reporting of adjusted basis is appropriate. Information is reportable if the security is acquired after a certain effective date.