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Securities: meaning, definitions and examples

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securities

 

[ sɪˈkjʊərɪtiz ]

Noun
Context #1 | Noun

financial market

Securities are fungible and tradable financial instruments used to raise capital in public and private markets. They represent ownership in a company or a debt owed by a government or corporation.

Synonyms

bonds, shares, stocks.

Which Synonym Should You Choose?

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Word Description / Examples
securities

A general term encompassing all types of financial instruments that can be traded. It is often used in financial or investment contexts to refer to a wide range of tradable assets.

  • The investor decided to diversify his portfolio with various securities.
  • The company issued new securities to raise capital.
stocks

Refers to shares of ownership in one or more companies, often used when talking about stock markets or investment portfolios. It can be used interchangeably with 'shares,' but 'stocks' usually implies ownership in multiple companies.

  • The stock market saw a significant rise today.
  • He has a diverse portfolio that includes various tech stocks.
bonds

A type of security that represents a loan made by an investor to a borrower. Typically used in the context of government or corporate financing, where the borrower pays periodic interest and returns the principal at maturity.

  • The city issued municipal bonds to finance the new public park.
  • Investing in government bonds can be considered a safe investment.
shares

Units of ownership in a company or financial asset. When someone owns shares, they own a portion of the company that issued it. Commonly used in the context of stock markets and corporate ownership.

  • She bought 100 shares of Apple Inc.
  • John decided to sell his shares to invest in a new startup.

Examples of usage

  • Government bonds and corporate stocks are common types of securities.
  • Securities can be bought and sold on stock exchanges.
  • The value of securities can fluctuate based on market conditions.
Context #2 | Noun

legal context

Securities also refer to documents that prove ownership or debt, such as stock certificates or bond certificates.

Synonyms

financial instruments, investment certificates.

Which Synonym Should You Choose?

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Word Description / Examples
securities

Often used in a general sense to refer to tradable financial assets, such as stocks, bonds, and derivatives. This term is commonly used in financial and investment contexts.

  • The company issued new securities to raise capital
  • Investors are looking for reliable securities to diversify their portfolios
financial instruments

Broad term that encompasses a wide range of tradable assets, including securities, but also other types of financial products like loans and insurance policies. Used mainly in technical finance and accounting contexts.

  • Understanding different financial instruments is key to navigating the markets
  • Financial instruments like futures and options are vital for hedging risks
investment certificates

Refers specifically to documents that confirm ownership of a certain number of a company’s shares or a certain investment. Often used in more formal or legal contexts.

  • The bank issued investment certificates to confirm the client's purchase
  • You need to present your investment certificates to claim dividends

Examples of usage

  • The company issued securities to its shareholders as proof of ownership.
  • The lawyer reviewed the securities to ensure compliance with regulations.

Translations

Translations of the word "securities" in other languages:

🇵🇹 valores mobiliários

🇮🇳 प्रतिभूतियाँ

🇩🇪 Wertpapiere

🇮🇩 surat berharga

🇺🇦 цінні папери

🇵🇱 papiery wartościowe

🇯🇵 有価証券

🇫🇷 valeurs mobilières

🇪🇸 valores

🇹🇷 menkul kıymetler

🇰🇷 증권

🇸🇦 الأوراق المالية

🇨🇿 cenné papíry

🇸🇰 cenné papiere

🇨🇳 证券

🇸🇮 vrednostni papirji

🇮🇸 verðbréf

🇰🇿 бағалы қағаздар

🇬🇪 საფინანსო ქაღალდები

🇦🇿 qiymətli kağızlar

🇲🇽 valores

Etymology

The term 'securities' originated from the Latin word 'securus' meaning 'free from care'. In the context of finance, securities have evolved over centuries to become essential tools for raising capital and facilitating investment. The modern concept of securities can be traced back to the development of stock exchanges in the 17th century, which revolutionized the way companies could access funding. Today, securities play a vital role in global financial markets, providing investors with opportunities to participate in economic growth and companies with avenues to finance their operations.

Word Frequency Rank

At position #2,254, this word belongs to solid intermediate vocabulary. It's frequently used in both casual and formal contexts and is worth learning for better fluency.