We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


Investment Securities

  

Categories: Investing

See: Investment Product.

More or less anything you'd invest in that is meaningful, or has scale, will be an investment security.

Stocks. Bonds. Derivatives therein. The security itself is backed by a given issuer of a bond's ability to repay...or in the case of a share, it represents a percentage ownership of the thing being bought into.

Is a piece of rare art a security? Not really. It's the thing itself that represents all the value in it, so it's just...valuable art. A call option to buy that Mona Lisa for $50 mil any time in the next year? That's an investment security.

Related or Semi-related Video

Finance: What is The Securities Amendmen...9 Views

00:00

finance a la shmoop what is the Securities Amendments Act of 1975

00:08

alright people before 1975 we're thinking Nixon era here trading stocks [People greeting Nixon]

00:14

was very much a regional thing New York was the Sun and the rest of the world

00:20

well more or less just orbited the 1975 Act created a national market clearing [Countries orbiting galaxy]

00:25

system so that a share of IBM traded for generally the same price in California

00:30

Georgia New Hampshire and New York this way smaller less liquid regional systems [US states appear beside IBM]

00:37

or regional pieces or regional trading bins weren't penalized with higher

00:42

transaction costs than you know those suit-and-tie wearing wolves on Wall [Transaction costs crossed out]

00:47

Street and that's pretty much it that's what the 1975 securities Amendment Act

00:51

was all about basically it just was passed to ensure that the SEC would

00:55

consider any new regulation that might come down the pike from that point

00:59

forward in terms of fairness across a level playing field [Moving through a tunnel]

01:03

nationally yeah fairness or the wind [Football player placing football on the field]

Up Next

Finance: What does securitized mean?
1 Views

What does securitized mean? Securitized is the completed method by which a financial institution’s debt is assembled into an instrument, such as...

Find other enlightening terms in Shmoop Finance Genius Bar(f)