Securities refers to various financial instruments used to finance operations of businesses. These include bonds, mortgage notes, preferred stock, classes of stock, common stock, government notes and bills etc. Securities are customarily traded on stock exchanges.

Common Stock – Definition

Common Stock

A document indicating ownership in a corporation is often referred to as common stock. It identifies an equity position in a business. The document or certificate is commonly referred to as a security and provides certain rights to the holder (owner). These rights include voting and residual value upon liquidation of the company.