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


### Answer
**Covered security** is defined as the following in *15 U.S.C. § 77p*:

> a security that satisfies the standards for a covered security specified in paragraph (1) or (2) of section 77r(b) of this title 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 this subchapter pursuant to rules issued by the Commission under section 77d(2) [1](#77p_1_target) of this title

#### Citation:
  - *15 U.S.C. § 77p*
  - Heading: **CHAPTER 2A-SECURITIES AND TRUST INDENTURES > SUBCHAPTER I-DOMESTIC SECURITIES**

