A simple definition of a security is any proof of owner ship or debit that has been
assigned a value and may be sold. (Today, evidence of ownership is likely to be a
computer file, while once it was a written piece of paper.) For the holder, a security
represents an investment as an owner, creditor or rights to ownership and which the
person hopes to gain profit. Examples are stocks, bonds and options.
The securities and Exchange Act of 1934
provides the more complicated definitions.
The term, security means any note, stock treasury stock, 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, certificate of deposit ,for a
security any put, call straddle option or privilege all any security, certificate of deposit or
group or index of securities.
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