What are Securities and Assets?
Securities is a financial instrument that is negotiable and
holds some type of monetary value. It is equivalent to an ownership
position in a corporation through the stock. Securities can be
categorized into three types:
- Equities
- Debts
- Derivatives
- Equities
Equity security is one where you hold shares of capital stock,
enabling you to be a shareholder in the company. These shares pay
out dividends, and such shareholders are usually not entitled to
regular payments. The dividends are dependent on how the company is
performing, and in the case of bankruptcy, you are entitled to
residual interest after all the obligations have been fulfilled to
its creditors. On the bright side, some control in the company via
voting rights is available.
