A security is generally a fungible, negotiable financial instrument representing financial value. There are generally three different types of securities. Debt Securities are generally banknotes, bonds or debentures. Equity Securities are represented most often as common stocks available to the general public. Derivative Securities are generally contracts involving forwards, futures, options and swaps.

A company, country, city or other entity that issues the security is called the issuer. It is vital to be aware of laws and regulations involving securities to be safe within this field.
Securities can be represented by a certificate but in this era of electronic banking procedures, non-certificated securities is much more common. These securities are simply an asset in the investor’s portfolio.

The United States Securities and Exchange Commission is an excellent source for the novice investor to utilize in initially delving into this field. They are an excellent research tool for determining laws and regulations that must be met to participate lawfully. This government site also provides specific tutorials in different types of securities. It keeps you abreast of upcoming changes in laws and provides a library of all related forms and submissions. The SEC also provides valuable research in the form of accessing public records to make more informed choices. They publish a newsletter that provides one with a general overview of hot topics within this investment field. It is also possible to use this site to determine if your advisor or agent is certified and found proficient in the field of securities.

If you are in the market for a specialist, the SEC is a great place to get testimonials and lists of recommended professionals. It also provides options for municipal bonds offered through governmental controls.

Be informed, be careful, and do your homework, but this field can yield big dividends.