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Business Knowledge(Part 1) : What are Securities?

dcrazyPosted for Everyone to comment on, 5 years ago2 min read

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Hi guys, as I come from Business Community I will be making posts which can give information about how Companies work. Today we will learning about Securities.

So What is a Security?

A security means an investment instrument issued by a government, a company, or other organization that represents a financial value and an acknowledgment of ownership to distributed profits.

Types Of Securities: There are 2 types of Securities, first one is Equities and second one is the Debts.

  1. Equities: Equity securities are shares of a corporation. You can buy stocks of a company through a broker. You can also purchase shares of a mutual fund that selects the stocks for you. The secondary market for equity derivatives is the stock market. It includes the New York Stock Exchange, the NASDAQ, and BATS.

  2. Debts: Debt securities are loans, called bonds, made to a company or a country. You can buy bonds from a broker. You can also purchase mutual funds of selected bonds.

In the next Part, We will learn about Initial Public Offering(IPO)

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