exempted security

noun | \ si-ˈkyu̇r-ə-tē \ | se·cur·i·ty

1. a : something (as a mortgage or collateral) that is provided to make certain the fulfillment of an obligation used his property as security for a loan

   b : an organization or department whose task is security

2. : evidence of indebtedness, ownership, or the right to ownership; specifically : evidence of investment in a common enterprise (as a corporation or partnership) made with the expectation of deriving a profit solely from the efforts of others who acquire control over the funds invested a security involves some form of investment contract — see also due diligence : evidence of investment in a common enterprise (as a corporation or partnership) made with the expectation of deriving a profit solely from the efforts of others who acquire control over the funds invested a security involves some form of investment contract — see also due diligence

   — asset-backed security
   : a security (as a bond) that represents ownership in or is secured by a pool of assets (as loans or receivables) that have been securitized

   — bearer security
   : a security (as a bearer bond) that is not registered and is payable to anyone in possession of it

   — certificated security
   : a security that belongs to or is divisible into a class or series of shares, participations, interests, or obligations, is a commonly recognized medium of investment, and is represented on an instrument payable to the bearer or a specified person or on an instrument registered on books by or on behalf of the issuer

   — convertible security
   : a security (as a share of preferred stock) that the owner has the right to convert into a share or obligation of another class or series (as common stock)

   — debt security
   : a security (as a bond) serving as evidence of the indebtedness of the issuer (as a government or corporation) to the owner

   — equity security
   : a security (as a share of stock) serving as evidence of an ownership interest in the issuer; also : one convertible to or serving as evidence of a right to purchase, sell, or subscribe to such a security

   — exempted security
   : a security (as a government bond) exempt from particular requirements of the Securities and Exchange Commission (as those relating to registration on a security exchange)

   — fixed-income security
   : a security (as a bond) that provides a fixed rate of return on an investment (as because of a fixed interest rate or dividend)

   — government security
   : a security (as a Treasury bill) that is issued by a government, a government agency, or a corporation in which a government has a direct or indirect interest

   — hybrid security
   : a security with characteristics of both an equity security and a debt security

   — mortgage-backed security
   : a security that represents ownership in or is secured by a pool of mortgage obligations; specifically : a pass-through security based on mortgage obligations

   — pass-through security
   : a security representing an ownership interest in a pool of debt obligations from which payments of interest and principal pass from the debtor through an intermediary (as a bank) to the investor; especially : one based on a pool of mortgage obligations guaranteed by a federal government agency — compare collateralized mortgage obligation, remic

   — registered security
   : a security (as a registered bond) whose owner is registered on the books of the issuer : a security that is to be offered for sale and for which a registration statement has been submitted

   — restricted security
   : a security accompanied by restrictions on its free transfer or registration of transfer

   — shelf security
   : a corporate security held for deferred issue in a shelf registration

   — Treasury security
   : a security issued by a government treasury : treasury 3

   — uncertificated security
   : a security that belongs to or is divisible into a class or series of shares, participations, interests, or obligations, that is a commonly recognized medium of investment, that is not represented by an instrument, and the transfer of which is registered on books by or on behalf of the issuer

   — unregistered security
   : a security for which a registration statement has not been filed

   — when-issued security
   : a security traded on a conditional basis prior to its issue

3. a : measures taken to guard against espionage or sabotage, crime, attack, or escape

   b : an organization or department whose task is security