What is security?

Security back in the days meant the ownership of stocks and shares. It was a piece of paper which proved that the particular investor had the stock or bond in his possession. This physical document was really important but as electronic record keeping evolved it’s significance declined. By electronic record keeping it has become easier to check and use the stocks and bonds. Now days securities stand for the bonds and shares as a whole. As in they represent any investment product and not just the evidence of ownership.