Securities and Investments

Definition ∞ Securities and investments broadly refer to financial instruments that represent ownership, a debt relationship, or rights to an asset, typically traded on financial markets. These include stocks, bonds, mutual funds, and various derivatives, all designed to generate returns for the holder. The term also encompasses the act of allocating capital with the expectation of future income or capital appreciation.
Context ∞ In the evolving landscape of digital assets, a key debate in cryptocurrency news concerns whether certain tokens qualify as securities, subjecting them to specific regulatory frameworks. Regulatory bodies globally are clarifying their stances on crypto assets, which significantly impacts how they can be offered, traded, and held as investments. Understanding the classification of digital assets as securities or other forms of investment is critical for market participants and project developers alike.