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Security

• Any claim that trades in the marketplace. Stocks, bonds, negotiable CDs, bankers acceptances are examples of securities. A bank loan is a private contract and it can not be bought or sold. Hence, it is not a security.

• According to the Securities Exchange Act of 1934, a security is any note, stock, treasury stock, bond, debenture, certificate of interest or participation in any profit-sharing agreement or in any oil, gas, or other mineral royalty or lease, any collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit, for a security, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or in general, any instrument commonly known as a security'; or any certificate of interest or participation in, temporary or interim certificate for, receipt for, or warrant or right to subscribe to or purchase, any of the foregoing; but shall not include currency or any note, draft, bill of exchange, or banker's acceptance which has a maturity at the time of issuance of not exceeding nine months, exclusive of days of grace, or any renewal thereof the maturity of which is likewise limited.
A simpler definition is that a security is a piece of paper that can be assigned a value and sold, or any investment made with the expectation of a profit.

• Piece of paper that proves ownership of stocks, bonds and other investments.

 
 

Follow this link for all the terms related to security.

 
 Embedded terms in definition
 Banker's acceptance
Bill of exchange
Bond
Call
Certificate of deposit
Contract
Currency
Debenture
Draft
Exchange
Foreign currency
Foreign
Index
Interest
Investments
Lease
Maturity
Note
Option
Paper
Participation
Profit
Purchase
Put
Right
Securities exchange act of 1934
Securities
Share
Stock
Straddle
Time
Treasury stock
Warrant
 
 Referenced Terms
 Accrued interest: Is the amount of interest which has accumulated since the last coupon interest payment. It is the amount of interest which the holder is entitled but is not due until the payment date. The buyer pays the seller of the bond the accrued interest.The accumulated coupon interest earned but not yet paid to the seller of a bond by the buyer (unless the bond is in default).Interest due from issue or from the last coupon date to the present on an interest-bearing Security. The buyer of the security pays the quoted dollar price plus accrued interest.

 Add on rate: A specific rate of interest to be paid. Stands in contrast to the rate on a discount Security, such as a Treasury bill, that pays no interest. Repo rate is an add-on rate.

 Adjusted basis: The value attributed to an asset or Security that reflects any deductions taken on, or capital improvements to the asset or security. Adjusted basis is used to compute the gain or loss on the sale or other disposition of the asset or security.

 Advance/decline line: A technical analysis tool representing the total of differences between advances and declines of Security prices. The advance/decline line is considered the best indicator of market movement as a whole.

 Agency: Is a Security issued by a government organization but not the treasury. These organizations include: the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac), the Federal National Mortgage Association (FNMA or Fannie Mae), the Government National Mortgage Association (GNMA or Ginnie Mae).

 
 Related Terms
 

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