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Security

security n

pl: -ties
1 a : something (as a mortgage or collateral) that is provided to make certain the fulfillment of an obligation [used his property as for a loan]
b : surety see also security for costs
2 : evidence of indebtedness, ownership, or the right to ownership
;specif
: evidence of investment in a common enterprise (as a corporation or partnership) made with the expectation of deriving a profit solely from the efforts of others who acquire control over the funds invested [a involves some form of investment contract] see also due diligence

asset-backed security
: a security (as a bond) that represents ownership in or is secured by a pool of assets (as loans or receivables) that have been securitized

bearer security
: a security (as a bearer bond) that is not registered and is payable to anyone in possession of it

cer·tif·i·cat·ed security
[sər-ti-fə-kā-təd-]
: a security that belongs to or is divisible into a class or series of shares, participations, interests, or obligations, is a commonly recognized medium of investment, and is represented on an instrument payable to the bearer or a specified person or on an instrument registered on books by or on behalf of the issuer

convertible security
: a security (as a share of preferred stock) that the owner has the right to convert into a share or obligation of another class or series (as common stock)

debt security
: a security (as a bond) serving as evidence of the indebtedness of the issuer (as a government or corporation) to the owner

equity security
: a security (as a share of stock) serving as evidence of an ownership interest in the issuer
;also
: one convertible to or serving as evidence of a right to purchase, sell, or subscribe to such a security

ex·empt·ed security
: a security (as a government bond) exempt from particular requirements of the Securities and Exchange Commission (as those relating to registration on a security exchange)

fixed-income security
: a security (as a bond) that provides a fixed rate of return on an investment (as because of a fixed interest rate or dividend)

government security
: a security (as a Treasury bill) that is issued by a government, a government agency, or a corporation in which a government has a direct or indirect interest

hybrid security
: a security with characteristics of both an equity security and a debt security

mortgage-backed security
: a security that represents ownership in or is secured by a pool of mortgage obligations
;specif
: a pass-through security based on mortgage obligations

pass-through security
: a security representing an ownership interest in a pool of debt obligations from which payments of interest and principal pass from the debtor through an intermediary (as a bank) to the investor
;esp
: one based on a pool of mortgage obligations guaranteed by a federal government agency compare collateralized mortgage obligation , remic

registered security
1 : a security (as a registered bond) whose owner is registered on the books of the issuer
2 : a security that is to be offered for sale and for which a registration statement has been submitted

restricted security
: a security accompanied by restrictions on its free transfer or registration of transfer

shelf security
: a corporate security held for deferred issue in a shelf registration

Treasury security
: a security issued by a government treasury
: treasury

un·cer·tif·i·cat·ed security
[ən-sər-ti-fə-kā-təd-]
: a security that belongs to or is divisible into a class or series of shares, participations, interests, or obligations, that is a commonly recognized medium of investment, that is not represented by an instrument, and the transfer of which is registered on books by or on behalf of the issuer

unregistered security
: a security for which a registration statement has not been filed

when-is·sued security
: a security traded on a conditional basis prior to its issue
3 a : measures taken to guard against espionage or sabotage, crime, attack, or escape
b : an organization or department whose task is security


Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.