What are Securities?

Answer:
Securities are an instrument that represents

something of financial value. A security can be many different things, some representing a debt, some representing an equity. Debt securities are items like bonds, which are debt securities because the issuing company owes the bond purchaser the value of the bond. Equity securities are items like shares or stocks in a company.

For example, if you buy shares of a mutual fund your shares are a security. If you buy a U.S. Savings Bond, that is a security too. What is and is not a security can vary by country and it determined by each country’s regulatory bodies. In the U.S., securities are regulated by the U.S. Securities and Exchange Commission (SEC).


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