Definition

A broad term for financial asset that has some monetary value.

Terminology

  • Two types
    • Equity securities: represent ownership (like stocks)
    • Debt securities: money borrowed and has to be repaid (like bonds, which you then get paid interest)
  • Investing in securities
    • Issuer → entity which creates securities
    • Investors → those who buy the securities
  • Usually securities are used by issuers to raise money fast and by investors to make money over time