What is a security?

A security refers to a broad type of investment with risks that are regulated under securities law. It encompasses various financial instruments such as notes, stocks, treasury stocks, bonds, and certificates of interest or participation in profit sharing agreements. The value of securities depends on the issuer's financial condition, products and markets, management, and the competitive and regulatory climate. Securities laws and regulations aim at ensuring that investors receive accurate and necessary information regarding the type and value of the interest under consideration for purchase.