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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.


Definition: Stock
As defined by the Uniform Securities Act, asecurity is any of the following:

  • a note;
  • stock;
  • treasury stock;
  • security future;
  • bond;
  • debenture;
  • 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

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    The Dutch East India Co. held an IPO in 1602, making it the first company to issue stock.
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