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. Managing Wealth

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

    Index-linked CDs generate returns similar to indexes, without the potential for loss.
  2. 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.
  3. Trading

    Profit On Any Price Change With Long Straddles

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

    The Long Straddle And Price Consolidation

    With options, the direction of a stock's next major move becomes less important than its magnitude.
  5. Investing

    How Does Securities Lending Work?

    Securities lending is the act of loaning a stock or other security to an investor or firm.
  6. Personal Finance

    Financial Data Analyst: Career Path & Qualifications

    Learn more about the career options available to financial data analysts, and determine whether the profession is a good match for you.
  7. 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.
  8. Investing

    What are Fixed-Income Securities?

    For a fixed-income security, the periodic return on the investment is the same throughout the life of the security. Principal is returned at the time of maturity. The payment can be in the form ...
  9. Retirement

    7 Certifications to Get After You Retire

    Your schedule opens up significantly in retirement. Pursuing any of these seven certifications will keep you busy as you gain a great new skill.
  10. Retirement

    Certifications For Estate Planning

    These certifications can lead to a promising career, but is estate planning for you?
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center