Definition 1.
In investing, a security is a transferable ownership interest (such as common stock) or IOU (such as a bond). In recent years, more and more things have become ""securitized,"" such as mortgage obligations, student loans and credit-card debt. By making such financial obligations more liquid, securitization has contributed to efficient markets and the democratization of investment opportunity. But by distributing ownership as well as risk, it has probably also increased the power of management with respect to shareholders.
|