Thursday, January 6, 2011

Securities

Securities are financial instruments that can be traded, often on an organized exchange. There are generally three broad categories of securities: debt securities (bonds, debentures, notes), equity securities (common stock, preference shares), and derivatives (forwards, futures, options, swaps). An investment portfolio is made up primarily of these tradeable securities, and most managed investment products hold a number and possibly combinations of various types of securities - the product itself may also be classified as a security e.g. ETFs, etc. The company or entity which issues a security is generally called the issuer (sometimes called the counter-party).

Synonyms: Security, Financial instrument, Negotiable instrument, Stocks and bonds

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