Final answer:
Debt and equity are both types of securities.
Step-by-step explanation:
The types of investments that are considered securities are both debt and equity.
Debt securities include bonds, notes, and debentures, which represent borrowed funds that need to be repaid with interest. These securities provide the issuer with capital while offering investors a fixed rate of return.
Equity securities include common stocks and preferred stocks. These securities represent ownership in a company and give investors the opportunity to participate in the company's profits and growth.
Example: If you buy a government bond, you are purchasing a debt security. If you buy shares of a publicly traded company, you are investing in equity securities.