Equity security.
Equity security. Equity security means the same as in 240.3a111 of this chapter, but for purposes of this section only does not include:
(1) Any debt security that is convertible into an equity security, with or without consideration;
(2) Any debt security that includes a warrant or right to subscribe to or purchase an equity security;
(3) Any such warrant or right; or
(4) Any put, call, straddle, or other option or privilege that gives the holder the option of buying or selling a security but does not require the holder to do so.