What are securities?

There are many paper or electronic financial instruments around the world, and securities are a specific type of them.

Securities have two main characteristics:

(1) entitles its owners, and

2) Traded.

Where have you heard of securities?

Stocks usually refer to securities, particularly in the U. Whenever there's a scandal on Wall Street, you might hear securities and Exchange Commission action has been taken.

Stock traders are also known as financial securities dealers, and you'll also see the wealth management column recommend "investment grade securities"-that is, top investments.

Information you need to know about securities...

The first thing you need to know is that securities are not always safe.

Stocks give you the right to share in the company's earnings and control and are a category of securities. The company may have a good or bleak outlook. The same is true of corporate bonds, which only give you the right to share in the proceeds. Derivatives are also Securities and may occur. Fluctuation.

Government bonds, on the other hand, are generally seen as safer, but at the same time have lower returns for investors.

Other securities, including mortgage-backed securities and rental income-backed securities, also give owners rights and can be traded.