Securities are investment vehicles or financial instruments that represent ownership of debt, publicly traded companies or rights of ownership.
The following are securities for each common investment topic:
- Public Company Equity: Stocks
- Public Company Debt: Bonds
- Rights of Ownership: Options
Securities are often tradeable and are monitored in the United States by the Securities Exchange Commission. They also provide public companies and governments with the ability to raise capital or debt from the public.
The U.S. government, for example, sells government bonds (a type of security) to raise money for government projects and welfare. In return, owners of these bonds expect interest and principal from the government in the future.
Did you like this article? Could it have been improved? Please email feedback@benzinga.com with the story link to let us know!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.