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Definition: Equity securities

Balance of Payments, IMF

Equity securities cover all instruments and records acknowledging, after the claims of all creditors have been met, claims to residual values incorporated enterprises. Shares, stocks, participation, or similar documents - such as American Depositary receipts (ADRs) - usually denote ownership of equity. Preferred stock of shares, which also provide for participation in the distribution of the residual value or dissolution of an incorporated enterprise, is included. Mutual funds and investment trust also are included.
International Monetary Fund (IMF), "Balance of Payments Manual" (BOP), Fifth Edition, Washington D.C., 1993