SECURITIES Meaning and
Definition
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Securities are financial instruments that signify ownership or creditor rights in a publicly traded company or governmental entity. These instruments are typically bought and sold in financial markets, such as stock exchanges, and include stocks, bonds, and other investment products.
Stocks, also known as shares or equity securities, represent ownership stakes in a corporation. When individuals hold stocks, they become partial owners of the company and are entitled to a share of its profits through dividends. Stocks can also appreciate in value, allowing investors to make a profit when they sell their shares at a higher price than they initially purchased them for.
Bonds, on the other hand, are debt securities that represent loans made by an investor to a company or government entity. Bonds typically pay interest to the investor until the maturity date when the investor is repaid the principal amount. They are considered less risky than stocks since they have a fixed interest rate and maturity date, making them a popular choice for risk-averse investors.
Other types of securities include options, mutual funds, exchange-traded funds (ETFs), and derivatives. Options give investors the right to buy or sell an underlying asset at a predetermined price within a specific period. Mutual funds and ETFs pool money from multiple investors to invest in a diversified portfolio of securities. Derivatives derive their value from underlying assets, such as commodities or currencies, and are often used for hedging or speculative purposes.
In summary, securities encompass a wide range of financial instruments that represent ownership, creditor rights, or investment opportunities in publicly traded companies or government entities. They play a vital role in capital markets, facilitating the transfer of funds and allocation of capital among investors and issuers.
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Bonds, certificates of stocks, and the like, as evidence of debt or property.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Top Common Misspellings for SECURITIES *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for SECURITIES
Etymology of SECURITIES
The term "securities" originated from the Latin word "securitas", which means "freedom from care" or "security". In its original sense, it referred to a state of being free from anxiety or danger. Over time, the term evolved to be used in various contexts, including finance and law. In the financial realm, "securities" began to refer to tradable financial assets, such as stocks, bonds, and derivatives, that represent ownership or creditor rights. The term's association with safety and protection likely led to its adoption in the financial industry, where investors seek security for their investments.
Idioms with the word SECURITIES
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European Association of Securities Dealers Automated Quotation (EASDAQ)
The idiom "European Association of Securities Dealers Automated Quotation (EASDAQ)" refers to a European stock exchange that was established in 1996 to provide a trading platform for technology and growth companies. It was modeled after the American NASDAQ stock exchange and aimed to facilitate the trading of small and mid-sized companies in Europe. However, the EASDAQ experienced significant challenges and ultimately ceased operating in 2003. The idiom may be used to describe an unsuccessful or short-lived venture that tried to replicate a successful model but faced obstacles or failure.
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