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. Commercial Bank

    A financial institution that provides services, such as accepting ...
  4. Insider Trading

    The buying or selling of a security by someone who has access ...
  5. Investment

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

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

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center