Look Out!

The term "security" is vitally important to the USA; therefore, you will find the exact definition from the USA below. You are strongly encouraged to memorize this definition for the exam.

Definition: Stock
As defined by the Uniform Securities Act, asecurity is any of the following:

  • a note;
  • stock;
  • treasury stock;
  • security future;
  • bond;
  • debenture;
  • evidence of indebtedness;
  • certificate of interest or
  • participation in a profit-sharing agreement;
  • collateral trust certificate;
  • pre-organization certificate or subscription;
  • transferable share;
  • investment contract;
  • voting trust certificate;
  • certificate of deposit for a security;
  • fractional undivided interest in oil, gas, or other mineral rights;
  • put, call, straddle, option, or privilege on a security,
  • certificate of deposit, or
  • group or index of securities, including an interest therein or based on the value thereof; put, call, straddle, option, or
  • privilege entered into on a national securities exchange relating to foreign currency; or, in general,
  • an interest or instrument commonly known as a "security"; or
  • a certificate of interest or participation in,
  • temporary or interim certificate for, receipt for, guarantee of, or
  • warrant or right to subscribe to or purchase any of the foregoing.
Stock Term Specifics

Related Articles
  1. Insights

    What Is a Silver Certificate Dollar Bill Worth Today?

    Although a silver-certificate dollar bill no longer can be exchanged for silver, the date, grade and unique features make certain certificates very valuable.
  2. Managing Wealth

    Index-Linked Certificates Of Deposit: Upside Potential, Low Risk

    Index-linked CDs generate returns similar to indexes, without the potential for loss.
  3. Investing

    Old Stock Certificates: Lost Treasure Or Wallpaper?

    What if you've discovered some old shares in bearer form? Follow our tips and find out what they're worth.
  4. Financial Advisor

    Succeeding At The Series 63 Exam

    Your career as a securities agent begins with this test. We'll show you how to score high.
  5. Trading

    Profit On Any Price Change With Long Straddles

    In this strategy, traders cash in when the underlying security rises - and when it falls.
  6. Investing

    What's an Incumbency Certificate?

    An incumbency certificate lists an organization’s incumbent directors and officers.
  7. Investing

    Old Stock Certificates: Lost Treasure?

    Today, most stocks reside electronically in a broker’s computer. But it is possible to stumble across a physical stock certificate.
  8. Trading

    Straddle Strategy A Simple Approach To Market Neutral

    Being both short and long has advantages. Find out how to straddle a position to your advantage.
  9. Insights

    Finding the Right Accounting Certification

    An accounting certification may be the boost your career needs. Find out how to get the most bang for your buck.
  10. Investing

    7 Facts You Didn't Know About The Greenback

    There's more to that $10 bill in your pocket than you think - read on for some interesting facts about U.S. currency.
Frequently Asked Questions
  1. I'm about to retire. If I pay off my mortgage with after-tax money I have saved, I can save 6.5%. Should I do this?

    Only you and your financial advisor, family, accountant, etc. can answer the "should I?" question because there are many ...
  2. My wife and I both converted our Traditional IRAs to Roth IRAs over a decade ago and have invested the maximum allowed each year since. We're buying our first home soon. Do we both qualify for one-time, tax-free, $10,000 distributions?

    You and your spouse each qualify for a penalty-free distribution of up to $10,000 for the purchase, acquisition or construction ...
  3. Is a Thrift Savings Plan (TSP) a qualified retirement plan?

    Take advantage of the government's retirement plan for employees with the Thrift Savings Plan. As with a 401(k), contributions ...
  4. Who manages the assets in a Roth 401(k) account?

    Learn how to personally manage the assets in your Roth 401(k) plan and determine the best options available to help meet ...
Trading Center