"A security is a tradable financial asset."
A detailed discussion of the different types of securities, including stocks, bonds, mutual funds, options, and futures.
Stocks: A type of security that represents ownership in a corporation.
Bonds: A type of security that represents a loan made by an investor to a corporation, government or other organization.
Mutual Funds: An investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.
Exchange-Traded Funds (ETFs): Similar to a mutual fund, but trades like a stock on an exchange.
Options: A type of security that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date.
Futures: A type of security that is an agreement to purchase or sell an asset at a future date at a predetermined price.
Derivatives: Financial instruments that derive their value from an underlying asset or group of assets.
Securities Regulation: The laws and regulations that govern the issuance, sale, and trading of securities in the market.
Insider Trading: The illegal buying or selling of securities while in possession of material, non-public information.
Securities Fraud: Any deceptive practices that misrepresent securities or withhold material facts from investors.
Securities Litigation: Legal actions brought by investors or regulators for violations of securities laws or fraudulent practices.
Securities Exchange: A market where securities are bought and sold, such as the New York Stock Exchange.
Securities Investor Protection Corporation (SIPC): A nonprofit organization that protects investors from losses due to the failure of a securities firm.
Securities and Exchange Commission (SEC): A federal agency responsible for enforcing securities laws, regulating the securities markets, and protecting investors.
Initial Public Offerings (IPOs): A company's first sale of stock to the public, raising capital for operations or expansion.
Equity Securities: These are securities that represent ownership in a company, such as common stock or preferred stock.
Debt Securities: These are securities that represent a loan made by an investor to an issuer, such as bonds, notes, or debentures.
Derivative Securities: These are securities whose value is derived from an underlying asset or benchmark, such as options, futures contracts, or swaps.
Convertible Securities: These are securities that can be converted from one type to another, such as convertible bonds that can be converted into equity securities at the option of the holder.
Securitized Securities: These are securities that are created by pooling and repackaging other financial assets, such as mortgage-backed securities, asset-backed securities, or collateralized debt obligations.
Warrants: These are securities that give the holder the right to purchase an underlying security at a predetermined price for a predetermined period of time.
Units: These are securities that are comprised of a combination of other securities or assets, such as a unit trust, which is a portfolio of securities managed by a professional fund manager.
Depositary Receipts: These are securities that represent an ownership interest in a foreign company, but are traded on a domestic exchange, such as American Depositary Receipts (ADRs).
Rights: These are securities that give current shareholders the right to buy additional shares of a company's stock at a discounted price.
Commercial Paper: These are short-term debt securities issued by corporations or financial institutions to fund short-term operating expenses.
"The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction."
"People commonly use the term 'security' to refer to any form of financial instrument."
"Some jurisdictions specifically exclude financial instruments other than equities and fixed income instruments."
"In some jurisdictions, it includes some instruments that are close to equities and fixed income, e.g., equity warrants."
"Securities may be represented by a certificate or, more typically, they may be 'non-certificated,' that is in electronic (dematerialized) or 'book entry only' form."
"Certificates may be bearer, meaning they entitle the holder to rights under the security merely by holding the security, or registered, meaning they entitle the holder to rights only if they appear on a security register maintained by the issuer or an intermediary."
"They include shares of corporate stock or mutual funds, bonds issued by corporations or governmental agencies, stock options or other options, limited partnership units, and various other formal investment instruments that are negotiable and fungible."
"Securities are tradable financial assets."
"Non-certificated securities are in electronic (dematerialized) or 'book entry only' form."
"Some jurisdictions specifically exclude financial instruments other than equities and fixed income instruments."
"In some jurisdictions, it includes some instruments that are close to equities and fixed income, e.g., equity warrants."
"Registered certificates entitle the holder to rights only if they appear on a security register maintained by the issuer or an intermediary."
"Some examples include shares of corporate stock or mutual funds, bonds issued by corporations or governmental agencies, stock options or other options, limited partnership units."
"Yes, formal investment instruments that are negotiable and fungible are considered securities."
"A security register is maintained by the issuer or an intermediary to determine the rights of the holder."
"Yes, non-certificated securities are often in electronic (dematerialized) form."
"Securities are tradable financial assets."
"No, not all financial instruments are considered securities, as some jurisdictions have specific exclusions."
"Holding the security, whether in certificated or non-certificated form, entitles the holder to rights under the security."