A security is a, such as or , that can be traded on a or at other .
Securities fall into three main categories:
- -based securities, such as shares and .
- -based securities, such as bonds and bank notes (because carries a promise to pay the bearer).
- , such as and .
The concept of securities is very close to the concept of, and in some cases the terms are used synonymously.
At tradimo, we try to give you information and support on online trading — independently of the securities or assets you want to trade. In our forum, you can discuss any type of security with other community members and expert traders:
If you are new to online trading, we recommend that you decide on your first steps here:
Because securities have a financial value, they represent ownership of the underlying assets. For example, holders of shares own a portion of the company that issued them. Bondholders invest in government debt, the value of the bonds indicating how much money they are owed, theand the time span, known as the maturity date.
Securities vary enormously in scope — their worth depends on factors such as, both the country and currency they are issued in, how long they take to mature (for debt-based), market capitalisation (for equity-based), whether there are ownership rights of any sort or dividends may be payable, taxation issues such as capital gains and credit ratings (for bonds and related derivatives).
Trading and investing in securities
The decision to trade orin securities depends on the goal. usually buy and sell securities within short time frames, according to their chosen . They often employ to analyse the and look out for opportunities. In doing so, they take on from other actors in the market.
usually buy securities to make money in the longer term. For example, shares issued by a company may rise in value from year to year as well as paying out a regular dividend, while bonds may have a long maturity date, such as 20 or 30 years. Of course, investors may sell sooner if suggests it is the right action.
Both traders and investors can trade online with the help of brokers: