A security is a, such as or , that can be traded on a or at other .
Securities fall into three main categories:
- -based securities, such as shares and .
- -based securities, such as bonds and bank notes (because carries a promise to pay the bearer).
- , such as and .
The concept of securities is very close to the concept of, and in some cases, the terms are used synonymously.
At tradimo, we try to give you information and What are "support levels" in trading? A support level is a... More on What is online trading and how does it work? Online trading ... More — independently of the securities or assets you want to trade.
Because securities have a financial value, they represent ownership of the underlying assets. For example, holders of shares own a portion of the company that issued them. Bondholders invest in government debt, the value of the bonds indicating how much money they are owed, theand the time span, known as the maturity date.
Securities vary enormously in scope — their worth depends on factors such as What is currency? Currencies are the generally accepted medi... More they are issued in, how long they take to mature (for debt-based), Market capitalisation (short: "market cap") is the total ma... More (for equity-based), whether there are ownership rights of any sort or dividends may be payable, taxation issues such as capital gains and credit ratings (for Bonds are debt instruments, which means they are a way of ... More and related derivatives)., both the country and
Trading and investing in securities
The decision to trade or What are value stocks? A value company is a company that app... More.in securities depends on the goal. usually buy and sell securities within short time frames, according to their chosen . They often employ to analyse the and look out for opportunities. In doing so, they take on from other actors in the
usually buy securities to make money in the longer term. For example, shares issued by a company may rise in value from year to year as well as paying out a regular dividend, while bonds may have a long maturity date, such as 20 or 30 years. Of course, investors may sell sooner if suggests it is the right action.