financial securities

Financial securities are investment instruments that represent an ownership position (like stocks), a creditor relationship (like bonds), or rights to ownership (like options). They are traded on various markets and can be categorized into two main types: equity securities (such as stocks) that allow investors to share in a company's profits, and debt securities (such as bonds) that involve borrowing money with a promise to repay it with interest. Securities provide investors with a means to grow their wealth, manage risk, and build a diversified investment portfolio.