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Security

Security

A security is a document or right that gives its holder value, usually one that can be converted into money.

What is a security?

A security (Swedish: värdepapper) is a document or a registered right that gives its holder a right that can usually be converted into money. Common examples are shares, bonds, warrants and convertibles. Securities are part of the broader category of financial instruments.

 

Securities in physical and digital form

Many securities were once represented by physical documents, such as share certificates. Today they are increasingly registered digitally. For shares in a limited company, it is the share ledger that shows who owns which shares, whether or not share certificates have been issued.

Learn more about the digital share ledger
Henrik Kristensen, NVR
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Related terms

Financial instruments

Financial instruments is a collective term for, among other things, shares, bonds, fund units and derivatives.

Share

A share is a unit of ownership in a limited company that gives the right to vote and to receive dividends.

Share certificate

A share certificate is written proof that a person owns certain shares in a limited company.

Issuer

An issuer is the company or organization that issues shares or other securities to investors.