Chapter C, Problem 2QS

To determine

Debt Security:

Debt security is a type of long term investment made by a company in the debts of another company. The debt are the amount that a company borrow to satisfy the financial needs of the company and pay a fixed percentage of interest in return of the money invested by the other party.

Equity Security:

It is the investment in the stock of another company. Sometime the company may invest in the common stock of another company and earn the huge return from that. Equity security involves high risk as the return is receive after all the dues of the company.

To identify: The type of security debt security (D) or equity security (E)