Security (finance)

A security is a document or its digital equivalent that represents a property right. It may or may not be traded on stock exchanges. Depending on the type of security, it may also be registered in the name of a specific holder.

Among the best-known securities are stocks, which represent an ownership interest in a company, and bonds, which represent a debt obligation.

Funds and ETFs are special types of securities that bundle various other securities. Companies use securities to raise capital and finance their business operations.