What is a 'Security'?

A security is a fungible, negotiable financial instrument that represents some type of financial value, usually in the form of a stock, bond, or option.

Sharper Insight. Smarter Investing. Manage Preferences TERM OF THE DAY Security A security is a fungible, negotiable financial instrument that holds some type of monetary value. It represents an ownership position in a publicly-traded corporation (via stock), a creditor relationship with a governmental body or a corporation (represented by owning that entity's bond), or rights to ownership as represented by an option. Breaking it Down: Securities can be broadly categorized into two distinct types: equities and debts. Hybrid securities, as the name suggests, combine some of... Read More Related to "Security" A Look At Primary And Secondary Markets Knowing how the primary and secondary markets work is key to understanding how stocks, bonds and other securities are traded. Read More The 4 Ways To Buy And Sell Securities Know the four main avenues of buying and selling investment instruments. Read More Common examples of marketable securities Learn about marketable securities and the most common types of debt and equity securities, including common stock, bonds and preference shares. Read More Related Definitions Income Deposit Security - IDS A security that combines common stock and notes of the issuer to provide regular income payments to the holder of the security. Read More Borrowing Power Of Securities The value associated with being able to invest in securities on margin, and being able to use securities as collateral in other transactions, such as taking on a loan. Read More Universe Of Securities A set of securities that shares a common feature such as the same market capitalization, industry or index. Read More Retired Securities Securities that have been repurchased by the issuer out of the company's retained earnings and cancelled according to Securities & Exchange Commission (SEC) regulations. Read More You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: