Definition of Security

Security is defined as a fungible, negotiable financial instrument that holds some type of monetary value. It can represent:

• Ownership in a corporation (stock)
• A creditor relationship with a government or corporation (bond)
• Rights to ownership (option) 1.

This definition was discussed in the context of evaluating whether NFTs qualify as securities by applying the Howey Test, which assesses if an investment contract exists based on the investment of money in a common enterprise with the expectation of profits derived from others' efforts 1.