Security

In Economics, the term ‘security’ refers to a financial asset or instrument that has economic value and can be purchased, sold or traded. That is, it’s a fungible(=exchangeable) asset which holds some form of monetary value.

There are three primary types of securities on the market: Equity provides ownership rights to holders Debt. Usually loans are repaid with periodic payments Hybrids - a combination of debt and equity Some of the most common examples include stocks, bonds and mutual fund shares. mutual funds = funds that group money from many individuals to buy a variety of investments share = unit of ownership in a company stocks = all the shares by which ownership of a corporation or company is divided bond = a certificate issued by a government or a public company promising to repay borrowed money at a fixed rate of interest at a specified time