Pure security

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A pure security or primitive security is a security that pays 1 currency unit at the end of the period if one particular state of nature is realized and pays nothing if any other state is realized. Market securities can be thought of as portfolios of pure securities, which is a useful abstraction facilitating analysis in many economic contexts.

[edit] References

Copeland, T. E.; Weston, J. F.; & Shastri, K. (2005). Financial Theory and Corporate Policy (4th ed.). Pearson, p. 77. ISBN 0-321-22353-5.