Which of these is NOT a type of financial security?

Real estate is not considered a type of financial security. Financial securities typically represent a contractual agreement involving an asset or a right to future cash flows and are traded in financial markets. Stocks, derivatives, and bonds all fall under this category.

Stocks represent ownership in a company and provide shareholders with a claim on future earnings and a say in company decisions. Bonds are fixed-income securities that represent loans made by investors to borrowers, usually corporations or governments, with defined terms and interest payments. Derivatives include financial instruments whose value is derived from the performance of an underlying asset, such as stocks or commodities, allowing for speculation or hedging.

In contrast, real estate refers to physical properties like land and buildings. While it is indeed an investment vehicle, it does not function as a security in the same way as stocks, bonds, or derivatives, which are standardized and traded in organized markets. This distinction is crucial for understanding the different types of investments available.