What Is a Collateral Proceeding, and How Does It Relate

question 79

Essay

What is a collateral proceeding, and how does it relate to the exclusionary rule?

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Definitions:

Securities

Assets which embody either ownership in a stock of a company available to the public, a lending relationship with a government or corporate entity through bonds, or claims to ownership via options.

Warrant Holder

An individual or entity that owns a warrant, giving them the right, but not the obligation, to buy a company's stock at a specified price before the warrant expires.

Cash Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Underlying Stock

The stock that is the basis for a particular derivatives contract, such as options or futures.