§ 8113 Security Contract Enforceability

• •You can buy or sell stocks or investments with just a spoken agreement—no need for a signed paper.
• •Even if the deal takes more than a year to finish, it’s still valid.
• •The rule applies even if someone tries to back out later.

You agree over the phone to buy 10 shares of a company from your friend, but you don’t sign anything.

The deal is still real, even without a signed paper, and your friend can’t say it doesn’t count just because you didn’t write it down.