Answer:
Explanation:
A security is a financial instrument, generally any financial asset that can be traded. The nature of what is and is not considered a security generally depends on the jurisdiction in which the asset is traded. Securities are transferable financial instruments issued by companies or governments that convey ownership, debt obligations, or the right to buy, sell, or trade options.
It may represent a company represented by an ownership interest in the company in the form of shares, a creditor relationship with a government agency, or an ownership interest in the bonds of that agency or property rights represented by options.
Debt or fixed income securities represent loans that must be repaid on terms that indicate the amount borrowed, interest rate, and maturity date. In other words, a debenture is an instrument of debt such as a bond or a certificate of deposit (CD) that can be traded between parties. Debt securities, such as bonds and certificates of deposit, typically require the owner to make periodic interest payments, repay principal, and other contractual rights. Such securities are typically issued for a period of time and eventually repaid by the issuer.