DEFINITION of 'Universe Of Securities'

A set of securities that shares a common feature such as the same market capitalization, industry or index. Universe of securities can also refer to securities within a defined price range, securities that deal in specific commodities and/or securities with the same product line.

BREAKING DOWN 'Universe Of Securities'

A universe of securities is usually referred to in the context of technical analysis to backtest for technical trading strategies. For example, in order for a technical trader to test a specific trading strategy targeted toward small-cap stocks, he or she will need to limit backtesting analysis to include only small caps. Thus, a trading strategy geared toward a specific universe of securities may not provide reliable results if the strategy is tested on a broad universe of securities.

RELATED TERMS
  1. Security

    A financial instrument that represents an ownership position ...
  2. Generic Securities

    A security backed by recently issued loans or mortgages. Its ...
  3. Marketable Securities

    Very liquid securities that can be converted into cash quickly ...
  4. Investment Securities

    Securities that are purchased in order to be held for investment. ...
  5. Covered Security

    A class of securities, created by the National Securities Market ...
  6. Backtesting

    The process of testing a trading strategy on prior time periods. ...
Related Articles
  1. Trading

    Backtesting: Interpreting The Past

    We offer some tips on this process that can help refine your current trading strategies.
  2. Financial Advisor

    Want A Career In Asset Management? Read This First

    When it comes to landing that job at an asset manager, not all degrees are created equally. Here's a look at the best schools for the job.
  3. Investing

    What's a Marketable Security?

    Marketable securities are financial instruments that can be readily bought and sold in a public market. The key feature is the ease with which it can be sold and converted into cash. Usually, ...
  4. Investing

    How Does Securities Lending Work?

    Securities lending is the act of loaning a stock or other security to an investor or firm.
  5. Investing

    What's a Debt Security?

    A debt security is a financial instrument issued by a company (usually a publicly traded corporation) and sold to an investor.
  6. Personal Finance

    6 World Class Universities In New York City

    A starter guide to six of the many world-class, respected and highly rated universities and colleges in New York City.
  7. Financial Advisor

    The Best Schools for Financial Planning

    Among the best universities for financial planning are the University of Georgia, Boston University, The College of Financial Planning, Texas Tech, San Diego State, Baylor, Fairleigh Dickinson ...
  8. Investing

    What are Government Securities?

    Government securities are debt instruments that governments issue to raise capital.
  9. Investing

    Explaining Market Orders

    A market order is the most common order used to purchase a financial security.
  10. 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 ...
RELATED FAQS
  1. What are the characteristics of a marketable security?

    Find out what it takes for a financial asset to be considered a marketable security, including its liquidity, intent of use ... Read Answer >>
  2. Does working capital include marketable securities?

    Learn how marketable securities such as Treasury bills (T-bills) and commercial papers are part of current assets and the ... Read Answer >>
  3. What's the difference between primary and secondary capital markets?

    Learn how in the primary capital market, securities are issued for the first time, while in the secondary market, investors ... Read Answer >>
  4. Do traders, market makers, specialists or others ever deliberately drive a stock's ...

    Many individual investors have had the experience of closing their position in a stock only to see the price rebound moments ... Read Answer >>
  5. How can I calculate the expected return of my portfolio?

    Understand the components of the equation used to calculate the expected return of an investor's portfolio. Learn why the ... Read Answer >>
Hot Definitions
  1. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  2. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  3. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  4. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  6. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
Trading Center