Security. The first meaning of security is a financial instrument that can be bought or sold. The second meaning is Collateral, any form of asset that is pledged (made available to a Counterparty) in the context of other financial contracting. This entry focuses on the first meaning of the term.
A security can be:
- any note, stock, treasury stock, security future, security-based swap, bond, debenture,certificate of interest
- or participation in any profit-sharing agreement
- or in any oil, gas, or other mineral royalty or lease,
- any collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security
- any put, call, straddle, option, or privilege on any security, certificate of deposit,
- or group or index of securities (including any interest therein or based on the value thereof),
- or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency,
- or in general, any instrument commonly known as a security,
- or any certificate of interest or participation in, temporary or interim certificate for, receipt for, or warrant or right to subscribe to or purchase, any of the foregoing;
A security does not include:
- or any note, draft, bill of exchange, or bankers' acceptance which has a maturity at the time of issuance of not exceeding nine months, exclusive of days of grace, or any renewal thereof the maturity of which is likewise limited.
- Securities Exchange Act of 1934, as amended 12 August 2012
This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.