Securities: Securities are financing instruments which are issued by different organizations to raise funds. There are several types of securities but the main types of securities are as follows: 1. Debt securities: Debt securities are financing instrument which represents the loan taken from lender and usually these securities pay defined interest rate on the amount borrowed. The several types of debt instruments are bonds, certificate of deposits, preferred stock , corporate bonds etc. 2. Equity securities: Equity securities are financing instrument issued by a company representing the share in the capital financed by the investor. These securities gives right of ownership in the share capital of the company. Equity share holders are paid dividend and share the retained earnings as well. To define: The debt securities

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Chapter 15, Problem 1RQ

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Securities: Securities are financing instruments which are issued by different organizations to raise funds. There are several types of securities but the main types of securities are as follows:

1. Debt securities: Debt securities are financing instrument which represents the loan taken from lender and usually these securities pay defined interest rate on the amount borrowed. The several types of debt instruments are bonds, certificate of deposits, preferred stock, corporate bonds etc.

2. Equity securities: Equity securities are financing instrument issued by a company representing the share in the capital financed by the investor. These securities gives right of ownership in the share capital of the company. Equity share holders are paid dividend and share the retained earnings as well.

To define: The debt securities

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