security

Piece of paper that proves ownership of stocks, bonds and other investments.

An investment that is represented by a negotiable document issued by a corporation or governmental entity for the purpose of raising capital. A listed security is one that is approved for trading on an exchange. A delisted security is one that is removed because of financial insufficiency or breaking of exchange rule. Two main categories: equity (claims against the earnings of a company by shareholders - includes stocks and mutual funds) and debt (claims against the assets of a company or government - includes bonds, notes, bills, and commercial paper). Some securities have hybrid characteristics such as preferred and convertible bonds. Securities are also classified by whether they are taxable, or tax-exempt. Most securities can be identified by unique ID numbers called CUSIP numbers or by symbols. Note: The term investment is more generic than security.