What is a "Security"?

In the investment context a "security" is defined under federal law to include stocks, bonds and most types of formal investments. In its broadest sense a security is an investment contract involving a common enterprise in which the profit or loss is dependent upon the efforts of someone else. So for example, if you buy shares in a corporation like General Motors, you are buying part ownership of the business along with many other people who also own shares. The profits and losses of the business depend on the employees who work for the corporation, not on what you do. So those shares are a security.

But if you buy an unincorporated business like your neighborhood landscaping service and plan to operate it yourself by going out and cutting lawns, that is an investment, but it is not a security because the success of the business will depend on primarily your personal efforts.

Government is your Security!

it means like well defended or ill put in a sentence- the security of the building was very good

Good stocks give you some security, bad ones none whatsoever. Kind of a crazy answer for a strange question.

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　　Small Business 　　Renting & Real Estate 　　Personal Finance 　　Investing 　　Insurance 　　Credit 　　Corporations

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