Security

From Recessipedia

In the context of finance, a security is a financial instrument or contract that promises the buyer, holder, or owner of the security or instrument interest on a loan (e.g. a bond), an ownership stake in a business enterprise (e.g. a share or equity), a combination of the two (e.g. a part bond, part equity hybrid, as in a convertible bond or a preferred share), or a cash payment tied to the value of an underlying asset (e.g., a financial derivative).^[1]

Notes

1. ↑ Robert E. Wright and Vincenzo Quadrini, Money and Banking (Flat World Knowledge, 2009): http://www.flatworldknowledge.com/pub/1.0/money-and-banking/financial-system/financial-markets.