Any stock or similar security, certificate of interest or participation in any profit-sharing agreement, preorganization certificate or subscription, transferable share, voting trust certificate or certificate of deposit for an equity security, limited partnership interest, interest in a joint venture, or certificate of interest in a business trust; or any security convertible, with or without consideration into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right; or any put, call, straddle, or other option or privilege of buying such a security from or selling such a security to another without being bound to do so.

Equity Securities, or Equities are any security that represents an ownership stake rather than an IOU. Equity securities include common and preferred stock. Bonds are not equity securities; they are simply loans to the company. Bondholders can expect repayment of principal from the business, while stockholders hope for dividends and price appreciation. In the event the business goes bad, the bondholders have a claim on the company's assets that supersedes the claims of equity holders.

securities that represent a share of the ownership of the firm. The security represents a residual claim on the cash flows of the firm

Shares of ownership in a corporation that can change significantly in value and that provide for a return to investors in the form of dividends.

CAPITAL STOCK and other SECURITIES that represent ownership shares, or the legal rights to purchase or acquire CAPITAL STOCK.