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.
As defined by the Uniform Securities Act, asecurity is any of the following:
- a note;
- treasury stock;
- security future;
- 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
InsightsAlthough a silver-certificate dollar bill no longer can be exchanged for silver, the date, grade and unique features make certain certificates very valuable.
Managing WealthIndex-linked CDs generate returns similar to indexes, without the potential for loss.
InvestingWhat if you've discovered some old shares in bearer form? Follow our tips and find out what they're worth.
TradingIn this strategy, traders cash in when the underlying security rises - and when it falls.
InvestingToday, most stocks reside electronically in a broker’s computer. But it is possible to stumble across a physical stock certificate.
InvestingThe right accounting certification can open the doors of opportunity.
TradingBeing both short and long has advantages. Find out how to straddle a position to your advantage.
InvestingSecurities lending is the act of loaning a stock or other security to an investor or firm.
TradingWith options, the direction of a stock's next major move becomes less important than its magnitude.
InvestingKnow the four main avenues of buying and selling investment instruments.