The financial encyclopedia uses cookies to improve your user experience. Find out more here!






  1. In the wides sense, documents giving title to property or calims on income which may lodged, e.g. as security for a bank loan.
  2. Income-yielding paper traded on the stock-exchange or in secondary markets. Usually a synonym for stocks and shares. An essential characteristic of a security is that it is saleable. The main types of secruities are:
    1. Fixed interest: Debentures, preference shares, stocks and bonds (including all governement securities and local suthority securitites);
    2. Variable interest: Ordinary shares;
    3. Other: Bills of exchange, assurance policies.

Securities may be redeemable or irredeemable, quoted or unquoted.

Reference: The Penguin Dictionary of Economics, 3rd edt.