{"id":365018,"date":"2013-01-28T16:34:14","date_gmt":"2013-01-28T21:34:14","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/dictionary\/definition\/security.html"},"modified":"2013-01-28T16:34:14","modified_gmt":"2013-01-28T21:34:14","slug":"security","status":"publish","type":"dictionary","link":"https:\/\/dictionary.findlaw.com\/definition\/security.html","title":{"rendered":"Security"},"content":{"rendered":"\n
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term:<\/p>\n

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n<\/p><\/dt>\n

pl:<\/i> -ties<\/b>
1 a<\/b> :<\/b> 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<\/b> :<\/b> surety <\/a> see also security for costs<\/a>
2<\/b> :<\/b> evidence of indebtedness, ownership, or the right to ownership
;specif<\/i>
:<\/b> 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<\/a> <\/p>\n

asset-backed security<\/b>
:<\/b> 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 <\/p>\n

bearer security<\/b>
:<\/b> a security (as a bearer bond) that is not registered and is payable to anyone in possession of it <\/p>\n

cer·tif·i·cat·ed security<\/b>
[sər-ti-fə-kā-təd-]
:<\/b> 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 <\/p>\n

convertible security<\/b>
:<\/b> 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) <\/p>\n

debt security<\/b>
:<\/b> a security (as a bond) serving as evidence of the indebtedness of the issuer (as a government or corporation) to the owner <\/p>\n

equity security<\/b>
:<\/b> a security (as a share of stock) serving as evidence of an ownership interest in the issuer
;also<\/i>
:<\/b> one convertible to or serving as evidence of a right to purchase, sell, or subscribe to such a security <\/p>\n

ex·empt·ed security<\/b>
:<\/b> 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) <\/p>\n

fixed-income security<\/b>
:<\/b> a security (as a bond) that provides a fixed rate of return on an investment (as because of a fixed interest rate or dividend) <\/p>\n

government security<\/b>
:<\/b> 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 <\/p>\n

hybrid security<\/b>
:<\/b> a security with characteristics of both an equity security and a debt security <\/p>\n

mortgage-backed security<\/b>
:<\/b> a security that represents ownership in or is secured by a pool of mortgage obligations
;specif<\/i>
:<\/b> a pass-through security based on mortgage obligations <\/p>\n

pass-through security<\/b>
:<\/b> 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<\/i>
:<\/b> one based on a pool of mortgage obligations guaranteed by a federal government agency compare collateralized mortgage obligation<\/a>, remic<\/a> <\/p>\n

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

restricted security<\/b>
:<\/b> a security accompanied by restrictions on its free transfer or registration of transfer <\/p>\n

shelf security<\/b>
:<\/b> a corporate security held for deferred issue in a shelf registration <\/p>\n

Treasury security<\/b>
:<\/b> a security issued by a government treasury
:<\/b> treasury <\/a> <\/p>\n

un·cer·tif·i·cat·ed security<\/b>
[ən-sər-ti-fə-kā-təd-]
:<\/b> 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 <\/p>\n

unregistered security<\/b>
:<\/b> a security for which a registration statement has not been filed <\/p>\n

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

Source: Merriam-Webster’s Dictionary of Law \u00a91996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.<\/div>\n<\/div>\n
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Related Terms from the Property Rights and Real Estate Law Glossary<\/h2>\n\t\n\t
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