What is a Digested Security?
Digested securities are investments that are secured by investors with the intention of holding on to the options for a significant amount of time. Usually, the idea behind the digested security is that the investor will ultimately earn a greater amount of return by keeping the investment rather than trading a succession of different options. This may be the case even if the immediate performance of the security is not projected to include an increase in worth. It is not unusual for many investors to have at least one digested security in the portfolio. Long range investments of this type help to provide a foundation for the financial profile of the investor, effectively establishing a solid financial base. From this perspective, the digested security makes it possible for the investor to engage in speculation of other securities. No matter how much the appearance of the portfolio may change, the digested security is still there. Selecting the right investment to function as a digested
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