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. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | Words to Know Security The term "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. Read More » Related to "Security" 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 » Preferred Stocks vs. Bonds: What's the Difference? Preferred stocks and corporate bonds are both used by companies to raise capital. Here's a look at the similarities and differences between the two. Read More » The 4 Ways to Buy and Sell Securities Know the four main ways to buy and sell investment instruments. The most common are brokerages and banks. Read More » SPONSORED BY INVESCO The Complete Guide to ETFs ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. Learn More » Related Definitions Fungibility Fungibility is the interchangeability of a good or asset with other individual goods/assets of the same type. Read More » Financial Instrument A financial instrument is a real or virtual document representing a legal agreement involving any kind of monetary value. Read More » Equity There are various types of equities, but equity typically refers to shareholders' equity, which represents the amount of money that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debt was paid off. Read More » Debt Debt is an amount of money borrowed by one party from another, often for making large purchases that they could not afford under normal circumstances. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy