Security (finance)

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In finance, a security is an instrument representing ownership (stocks), a debt agreement (bonds) or the rights to ownership (derivatives). A security is essentially a contract that can be assigned a value and traded.

Examples of a security include a note, stock, preferred share, bond, debenture, option, future, swap, right, warrant, or virtually any other financial asset.[1]


  1. "Security Definition", Investopedia, referenced 2011-11-17.