A security is a marketable ownership contract which entitles the owner to the right to use the contract as a type of currency backed by a specific asset, which could be partial ownership in a company, a debt (bond), or a derivative interest.
Securities are broadly categorized into debt securities (e.g., bonds), equity securities (e.g., stock), and derivatives (e.g., futures, options, etc.). They will generally be issued by a company or government entity and will entitle the owner of the contract the right to trade the ownership interest for value in the open market.
Some private placement investments and contracts can also be considered securities, but most securities will be registered with the Securities Exchange Commission (SEC) and are subject to regulations. Securities can trade on exchanges or Over the Counter (OTC).
Exchanges show regular competitive price updates and can act as a clearing agent. Financial instruments that contain securities, such as mutual fund shares, are also considered securities.
What is an Asset-Backed Security?
What are Common Questions about Stocks?
IRA is a tax designation which can be placed on an account at various institutions that offer a list of investment options
The Symmetrical Triangle Bottom pattern forms when a stock’s price fails to retest a high or a low and forms two trends
Mining pools allow individuals with insufficient computing power to join a mining pool and split the rewards proportionally to the amount of computer power
A Bill of Sale is essentially a trumped-up receipt, unless you are in England. It is a document affirming ownership
Accidental Death Benefits are paid only if the cause of death is deemed to be an accident. There are several exclusions
Created about the same time as the FDIC, the FSLIC, insured up to $100,000 in deposits at savings and loan institutions
Fibonacci Channels use Fibonacci numbers and proportions to define possible places where reversals will occur
A Money Purchase Plan does not have to be offered to every owner, only those who are considered employees as well
Form 2848: Power of Attorney and Declaration of Representative is an essential tool for individuals who require professional representation in tax-related matters