A security is any investment product that can be exchanged for value and involves risk. In order for an investment to be considered a security, it must be readily transferable between two parties and the owner must be subject to the loss of some, or all, of the invested principal. If the product is not transferable or does not contain risk, it is not a security.

Types of securities Types of non-securities
Common stock Whole life insurance
Preferred stock Term life insurance
Bonds IRAs
Mutual funds Retirement plans
Variable annuities Fixed annuities
Variable life insurance Prospectus
Options Confirmations
Rights
Warrants
Real Estate Investment Trust
CMOs
ETS / ETNs

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Equity = Stock

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