(redirected from Investment companies)
Also found in: Dictionary, Thesaurus, Legal, Financial.


in finance, instruments giving to their legal holders rights to money or other property. Securities include stocks, bonds, notes, mortgages, bills of lading, and bills of exchange. See speculationspeculation,
practice of engaging in business in order to make quick profits from fluctuations in prices, as opposed to the practice of investing in a productive enterprise in order to share in its earnings.
..... Click the link for more information.
 and stock exchangestock exchange,
organized market for the trading of stocks and bonds (see bond; stock). Such markets were originally open to all, but at present only members of the owning association may buy and sell directly.
..... Click the link for more information.



documents indicating a right of ownership (such as stocks, bonds, letters of credit, bills of exchange, checks, and bills of lading) that may only be redeemed upon their presentation. The various categories of securities are (1) securities made out in the name of a specific person, (2) securities made out in the name of the first purchaser and “at his order” (meaning that the person indicated thereon is entitled to transfer the securities by endorsement), and (3) securities that are payable to the bearer and do not indicate in whose name they were issued.

The loss of securities usually means loss of the right to redemption expressed therein. In some instances, however, measures are indicated to protect the rightful owner. Thus a procedure is established in Soviet legislation by means of which the rights of the bearer may be restored upon loss of a savings book.

In capitalist society the principal types of securities are stocks and bonds issued by capitalist enterprises and state loan bonds. Mortgage deeds issued by mortgage banks on land, houses, and other immovable property are a special kind of bond. Securities may represent a capital share in an enterprise or may be evidence of money lent out, and they may confer the right to a regular income in the form of dividends or interest.

The issuance of securities is one of the most important operations of finance capital; it is used by monopolies to extract maximum profits—for example, the huge amounts of founders’ profits obtained from the issuance of securities of newly organized stock companies. Since securities yield an income to their owners, they are bought and sold at specified prices on the stock exchange.

References in periodicals archive ?
The provisions of the proposed SOP, Reporting Financial Highlights and Schedule of Investment by Nonregistered Investment Partnerships, an amendment to the Audit and Accounting Guide, Audits of Investment Companies, and SOP 95-2, would be effective for financial statements for fiscal years ending after Dec.
Statement of Position 95-3, Accounting for Certain Distribution Costs of Investment Companies, prepared by the accounting standards executive committee, amends the AICPA audit and accounting guide, Audits of Investment Companies.
The relief will enable registered investment companies to invest in ETFs managed by State Street in excess of the limits set by Section 12(d)(1)(A) of the 1940 Act, providing them with more flexibility to achieve their asset allocation and investment strategies.
The taxpayer sought to classify the subsidiaries as financial organizations for Illinois tax purposes on the grounds that they qualified as investment companies.
Investment partnerships are identified as a type of investment company in the AICPA's Audit and Accounting Guide Audits of Investment Companies (the Guide).
The Advisory Group met with an array of experts, including former senior officials of the Securities and Exchange Commission, representatives of accounting and law firms who have extensive experience with investment companies, and noted ethicists and academicians.
It replaces the current AICPA Audit & Accounting Guide Audits of Investment Companies, which was issued in 1987 and updated only for conforming changes.
Combinations of corporate investment companies can be accomplished under Sec.
He noted that the number of investment companies increased by 133 percent and their assets under management increased by 344 percent between 1982 and 1992.
An SOP entitled Foreign Currency Accounting and Financial Statement Presentation for Investment Companies will be published later this year.
ETFs are investment companies that track investment indexes and whose shares trade on a stock exchange or Nasdaq at a price approximating their net asset value.
The Investment Company Act of 1940 is a 53-year-old statute that was enacted to regulate mutual funds and other investment companies for the protection of investors.

Full browser ?