> For the complete documentation index, see [llms.txt](https://docs.verified.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.verified.network/reference/verified-sdk/security-tokens.md).

# Security tokens

Investment product contracts consume and generate cash flows that are owed to or by holders of securities. For example, a shareholder holds a share token that owes the shareholder dividends generated by the share. Similarly, a bond holder holds a bond token that is owed interest by the issuer of the bond. 

A security token is therefore nothing but a contract that has the rights and obligations of an underlying registered security which is defined by an investment product's smart contract. The holder of a security token for an investment product therefore has the rights to and obligations for any cash transfers required or generated by the investment product.

Request to issue a security token can be made by calling the `issueSecurity` function on the Securities Factory contract. `getHolder` returns the issuer of a security token. `getSecurity` returns the investment product address for a security token. `getSecurityToken` returns ISIN, company, currency and a boolean whether a security token is accessible to retail or qualified investors.  

The requests to issue security tokens are assessed by Registrar and Transfer agents on the Verified Network which decides on its approval. Only approved security tokens are operational on the Verified Network. Only a Registrar and Transfer agent or the issuer of a security token can whitelist its holders. Only whitelisted security token holders can call the `approve`, `transfer`, `transferFrom` functions in a security token. 

The Registrar and Transfer agent is responsible for administering corporate actions on the security token.