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Security
Definition Of Security:
A type of investment instrument that represents either an ownership interest in a company or evidence of debt.
Stocks, bonds, mutual funds, variable annuities, and investment contracts all are types of securities. A few other types of securities include debentures, futures, puts, calls, warrants, and mineral rights. Insurance policies and fixed annuities typically are not securities. The term security is precisely defined in the Securities Act of 1933 and the Securities Exchange Act of 1934, as well as through case law.Other definition of security- 1. General: Prevention of and protection against assault, damage, fire, fraud, invasion of privacy, theft, unlawful entry, and other such occurrences caused by deliberate action. See also safety. 2. Computing: Extent to which a computer system is protected data corruption, destruction, interception, loss, or unauthorized access. See also secure system. 3. Finance: Financing or investment instrument (which may or may not be a negotiable instrument) issued by a firm or government agency which denotes an ownership interest and provides evidence of a debt, a right to share in the earnings of the issuer, or a right in the distribution of a property. Securities include bonds, debentures, notes, options, shares (stocks), and warrants but not insurance policies, and may be traded in financial markets such as stock exchanges. 4. Pledging: Asset(s) pledged to guaranty the repayment of a loan, satisfaction of an obligation, or in compliance of an agreement. Security gives a lender or obligee a legal right of access to the pledged asset(s) and to take their possession and title in case of default for a foreclosure sale.
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