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DEFINITION of 'Non-Security'. A type of investment that is not as freely marketable or transferable as a security.Unlike a security, a non-security does not require the backing of an underwriter or bank, and involves much less documentation and paperwork. security is an instrument representing a freely transferable and salable investment, which includes the risk of loss in value. Securities include assets such as stocks, mutual funds, government bonds and debentures.
Most definitions of nonpublic entity in the Accounting Standards. Codification exclude an entity that is a conduit bond obligor for conduit debt. securities that are traded in a public market (a domestic or foreign stock. exchange or an over-the-counter market, including local or regional markets).