A financial security is
A)a jail term for a financial manager that has committed fraud.
B)a contract that is created only when a new stock is issued to the public.
C)a financial contract created whenever funds are transferred.
D)a contract that is created only when a new bond is first sold.

Question

Quizplus · Accepted Answer

A financial security is essentially a financial contract or instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option. It is not limited to new stock or bond issues but can be created in various situations where funds are transferred, including but not limited to, the issuance of new stocks or bonds.

A Financial Security Is