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Securities Exchange Act of 1934 defines security as:
"Any note, stock, treasury stock, bond, debenture, certificate of interest or participation in any profit-sharing agreement or in any oil, gas, or other mineral royalty or lease, any collateral trust certificate, pre-organization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit, for a security, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or in general, any instrument commonly known as a 'security'; or any certificate of interest or participation in, temporary or interim certificate for, receipt for, or warrant or right to subscribe to or purchase, any of the foregoing; but shall not include currency or any note, draft, bill of exchange, or banker's acceptance which has a maturity at the time of issuance of not exceeding nine months, exclusive of days of grace, or any renewal thereof the maturity of which is likewise limited."
Still confused? Let's concentrate on one form of security (stock equity) and examine its definition in plain English:
 Security (stock equity) is an investment instrument, issued by a corporation, government, or other organization that offers evidence of debt or equity and owned by you or yours.
What do securities do? In an ideal world they contribute to the economy by making it easier for those with money to find those who need investment capital. Investing into companies that are doing well helps those develop their business, thus rewarding performance and providing an incentive for further growth.
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