Massachusetts General Laws ch. 271 sec. 35 – Definition of words and phrases used in Secs. 35 to 38
Section 35. The following words and phrases used in this and the three following sections of this chapter shall, unless a different meaning is required by the context, have the following meanings:
Terms Used In Massachusetts General Laws ch. 271 sec. 35
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
”Person”, an individual, partnership, corporation or association, whether acting in his or their own right or as the officer, agent, servant, correspondent or representative of another.
”Contract”, any agreement, trade or transaction.
”Securities”, all evidences of debt or property and options for the purchase and sale thereof, shares in any corporation, joint stock company or association, bonds, coupons, scrip, rights, choses in action and other evidences of debt or property and options for the purchase or sale thereof.
”Commodities”, anything movable that is bought and sold.
”Bucket shop”, any room, office, store, building or other place where any contract prohibited by the following section is made or offered to be made.
”Keeper”, any person owning, keeping, managing, operating or promoting a bucket shop, or assisting to keep, manage, operate or promote a bucket shop.
”Bucketing” or ”Bucket-shopping”,
(a) The making of, or offering to make, any contract respecting the purchase or sale, either upon credit or upon margin, of any securities or commodities, wherein both parties thereto intend, or such keeper intends, that such contract shall be, or may be, terminated, closed or settled according to, or upon the basis of, the public market quotations of prices made on any board of trade or exchange upon which said securities or commodities are dealt in, and without a bona fide purchase or sale of the same; or
(b) The making of, or offering to make, any contract respecting the purchase or sale, either upon credit or upon margin, of any securities or commodities, wherein both parties intend, or such keeper intends, that such contract shall be, or may be, deemed terminated, closed or settled, when such public market quotations of prices for the securities or commodities named in such contract shall reach a certain figure without a bona fide purchase or sale of the same; or
(c) The making of, or offering to make, any contract respecting the purchase or sale, either upon credit or upon margin, of any securities or commodities, wherein both parties do not intend, or such keeper does not intend, the actual or bona fide receipt or delivery of such securities or commodities, but do intend, or such keeper does intend, a settlement of such contract based upon the differences in such public market quotations of prices at which said securities or commodities are, or are asserted to be, bought and sold.