What are securities in the context of finance?

Securities are fundamentally financial instruments that hold value and can be traded. They represent ownership in a particular asset and are a crucial component of the financial markets. When someone holds securities, particularly in the context of stocks, they own a share of the company, granting them rights such as voting in shareholder meetings and receiving dividends.

Securities encompass a variety of forms, including stocks, bonds, and options, but the key characteristic is that they are negotiable and can be bought or sold in financial markets. This trading aspect is essential to the liquidity and functionality of the capital markets.

The definitions provided in the other options do not accurately describe the concept of securities. The first option indicates assets that cannot be traded, which contradicts the very nature of securities. The second option refers to monitors of stock market regulations, which do not pertain to the definition of securities themselves but rather to entities that oversee market activities. Lastly, the fourth option describes cash equivalents that have no risk, which pertains to different financial instruments like Treasury bills or money market accounts, rather than securities that can have varying levels of risk based on market conditions.