Securities
lastmod 2025-10-15created 2025-01-246 edits
A valuable security (有價證券, security) is an instrument that represents a private right (私權) with property value, and serves to facilitate the smooth circulation and use of property rights. It refers to an instrument stating a right to claim valuables such as a certain amount of money or goods, that is, an instrument representing a property right under commercial law, and is also simply called a 'security'.
About
The term means a written document stating matters concerning property rights and obligations, and in everyday use valuable securities are also called securities. Strictly speaking, however, the two are different.
The securities people commonly think of, and the securities of securities firms, mean 'valuable securities'. Since valuable securities are a kind of security, you need to understand the concept of securities to understand valuable securities.
By legal effect, they are divided into valuable securities, evidentiary instruments, exculpatory instruments (qualification instruments), money instruments (monetary instruments), etc.
Making an intangible right concrete in an instrument is called 'embodiment (化體, embody)', and an instrument showing the embodied right is said to 'represent (表彰)‘ it.
Differences between securities and stocks
Conceptual differences
- Securities (證券, Securities)
- A broad concept covering financial products.
- Includes various financial assets such as stocks, bonds, investment trusts, and derivatives.
- Legal documents proving an investor's ownership, a creditor's rights, etc.
- Stock (株式, Stock)
- A type of security; an equity stake representing ownership of a company.
- Holding stock makes you a shareholder of the company, with voting rights and the right to receive dividends.
- Traded on the stock market, with fluctuating prices.
Types
- Securities: stocks, bonds, beneficiary certificates, derivatives, etc.
- Stocks: divided into common stock, preferred stock, etc.
Issuer
- Securities: issued by governments, companies, financial institutions, etc. for various purposes.
- Stocks: issued by stock companies to raise capital.
Holder's rights
- Securities: vary by type of security; holders have various rights (e.g., receiving interest, trading).
- Stocks: voting rights over company management, receiving dividends, and claims on residual assets.
How returns are generated
- Securities: returns through interest (bonds), dividends (stocks), capital gains (all securities), etc.
- Stocks: returns through dividends and gains from rising share prices.
Risk level
- Securities: risk varies by type (stocks > bonds > deposits, etc.).
- Stocks: highly volatile depending on company performance and market conditions; relatively high risk.
Trading markets
- Securities: traded on the stock market, bond market, over-the-counter market (OTC), futures market, etc.
- Stocks: traded on the KOSPI market (KOSPI), KOSDAQ (KOSDAQ), etc.
Summary
| Category | Securities | Stocks |
| Definition | General term for financial assets | A security representing ownership of a company |
| Types | Stocks, bonds, derivatives, etc. | Common stock, preferred stock, etc. |
| Issuer | Governments, companies, financial institutions | Stock companies |
| Returns | Interest, dividends, capital gains | Dividends, share price gains |
| Risk level | Varies (may be lower than stocks) | Relatively high |
| Trading markets | Stock market, bond market, etc. | KOSPI, KOSDAQ, etc. |
Collection of CES 2025 report files from Korean securities firms
- Collection of securities firms' CES 2025 reports (pdf) 1
- IBK Investment & Securities : AI into Real Life
- iM Securities : Physical AI, leading innovation
- Daishin Securities : AI and mobility come into Life
- Samsung Securities : Autonomous driving, disbelief means hell
- Mirae Asset : Healthcare services brought closer by the expanding AI ecosystem
- Shinhan Securities : CES2025 - The fastest step forward
- Yuanta Securities : Expanding connections and possibilities
- Kiwoom Securities : AI Phase 2 - Monetization
- Hana Securities : Now back to what is visible
- Hanwha Investment & Securities : Preparing for the physical AI era
See also
Favorite site
References
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Korean_Securities_CES_2025_Report.zip ↩