Securities

Securities are financial instruments that represent ownership in a company (equity securities, like stocks) or a debt obligation (debt securities, like bonds). Securities can also include derivatives, such as options or futures. They are tradable assets that investors buy or sell in financial markets to achieve capital growth, earn income, or hedge against risk. Securities are subject to regulation to ensure transparency, protect investors, and maintain market integrity.

Example

An investor purchases shares of a publicly traded company, which are considered equity securities, providing ownership in the company.