Investment Securities

AAA

DEFINITION of 'Investment Securities'

Securities that are purchased in order to be held for investment. This is in contrast to securities that are purchased by a broker-dealer or other intermediary for resale. Banks often purchase marketable securities to hold in their portfolios.

INVESTOPEDIA EXPLAINS 'Investment Securities'

Investment securities held by banks are usually one of two main sources of revenue, along with loans. Investment securities provide banks with a source of liquidity along with the profits from realized capital gains when they are sold.

RELATED TERMS
  1. Investment Bank - IB

    A financial intermediary that performs a variety of services. ...
  2. Commercial Code

    Private and public laws that regulated how commerce is to be ...
  3. Investment

    An asset or item that is purchased with the hope that it will ...
  4. Investment Banker

    An individual who works in a financial institution that is in ...
  5. Security

    A financial instrument that represents: an ownership position ...
  6. Commercial Bank

    A financial institution that provides services, such as accepting ...
Related Articles
  1. Introduction To Treasury Inflation-Protected ...
    Bonds & Fixed Income

    Introduction To Treasury Inflation-Protected ...

  2. Choosing An Advisor: Wall Street Vs. ...
    Brokers

    Choosing An Advisor: Wall Street Vs. ...

  3. What is a Ginnie Mae security?
    Retirement

    What is a Ginnie Mae security?

  4. Where does the stock come from when ...
    Investing

    Where does the stock come from when ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center