### Question
Can you define what covered security means?


### Answer
**Covered security** is defined as the following in *15 U.S.C. § 78bb*:

> a security that satisfies the standards for a covered security specified in paragraph (1) or (2) of section 18(b) of the Securities Act of 1933 [15 U.S.C. 77r(b)], at the time during which it is alleged that the misrepresentation, omission, or manipulative or deceptive conduct occurred, except that such term shall not include any debt security that is exempt from registration under the Securities Act of 1933 [15 U.S.C. 77a et seq.] pursuant to rules issued by the Commission under section 4(2) [1](#78bb_1_target) of that Act [15 U.S.C. 77d(a)(2)]

#### Citation:
  - *15 U.S.C. § 78bb*
  - Heading: **CHAPTER 2B-SECURITIES EXCHANGES**

