Final answer:
c) Common
The two main types of securities issued by a corporation are debt securities and equity securities. Debt securities include corporate bonds with predetermined interest rates, whereas equity securities represent ownership like common stock and may provide dividends to shareholders.
Step-by-step explanation:
The two main types of securities issued by a corporation are debt securities and equity securities. Debt securities are often in the form of corporate bonds or notes. A corporate bond is a contract where the corporation agrees to repay borrowed money with a predetermined coupon rate of interest over a specified timeframe. On the other hand, equity securities represent ownership in the corporation, such as common stock, and may entitle the holder to a share of the corporation's profits through dividends.
A corporation is a business owned by shareholders who have limited liability for the company's debts but can partake in the company's profits. The concept of equity also extends to assets like real estate, where it represents the monetary value a homeowner has after selling a property and repaying any outstanding loans. Diversification, which involves investing in a range of companies, is a strategy used to mitigate investment risks.