Is A Fixed Index Annuity A Security? 
That is an excellent question !! Many people become confused by this type of annuity because of it 's connection to the stock market . The annuity does have it 's performance linked to the performance of the market , but it does not involve any particular stock . Your annuity gains based upon the gains that the aggregate market gains , not ant particular stock . For example , your annuity bases its gains on the S&P 500 . If the S&P 500 rises from point a to point b , your annuity credits your fund with a promised gain . You have not purchased any stock , nor are you participating in the market . You are just `` gambling '' on its performance . Since there is no stock investment , it is not considered a security , unlike a variable annuity , which does invest in the market , and therefore is considered a security . I hope that helps , thanks for asking ! 