Financial Security

What does Financial Security mean?

A Financial Security is a type of asset that is classified as such based on an expectation of increased value in the asset due to work performed by others.

It is also tradable, but the complete definition of what qualifies as a security is determined based on regulatory agencies in each jurisdiction. For example, while a U.S. security and a Japanese security are similar, the laws and regulations of each country introduce some subtle differences into what is and isn’t classified as a financial security.