Question

Which types of investments are securities? A.both debt and equity B. debt only C.equity only D.neither debt nor equity

Answer 1

Answer:

A.both debt annd equity

Answer 2

Both debt and equity are securities.

Securities can be classified into three broad groups:

1. Equity shares- referring to the common stock or shares.

This involves contribution to the overall capital of a firm.

2. Debt- referring to the bond, debentures and banknotes.

3. Derivatives- referring to options, futures, swaps and forwards.

The values of such securities are dependent on other underlying assets.