Investment securities (stocks, bonds, etc.) are normally held for owners in securities accounts by broker/dealers. Broker/dealers, in their turn, have securities held for them in accounts with depository companies, the major one being the Depository Trust Corporation in New York. In Article 8 of the Uniform Commercial Code, there is little recognition of securities accounts, and what is recognized is of little help to those transacting business through such accounts. The 1994 revision to Article 8 remedies this deficiency.

The Revised Article 8:

• Establishes customers' specific rights in their securities accounts against their broker/dealers.
  
• Enables customers of broker/dealers to obtain credit that is secured by their securities accounts.
  
• Makes it easier for broker/dealers to obtain secured credit on their accounts with securities depositories.
  
• Helps avoid any meltdown because broker/dealers cannot obtain credit when a market crashes.
  
• Gives creditors better control over collateral that includes securities accounts.
  
• Assures smoother function of securities markets over the long term.
  
• Reduces the prospect of litigation over broker/dealer - customer relationships.
  
• Assures that the transfer rules for securities will remain state law rather than federal regulation.
  
• Makes it easier and less risky for people to invest through broker/dealers.