Posted byadmin October 22, 2019July 22, 2020 Securities are financial products or instruments issued by companies and governments to raise capital. They are generally classified into two main types. Equity (stocks/shares) represents ownership in a company with specific rights, including the ability to share in the profits. Owners of equity may receive periodic income payments from the profits of the company. These are called dividends. The second type of security is a bond, sometimes referred to as a debenture. A bond is a loan that investors make to an issuing company or government. The borrowers (issuers) get the cash they need while the lenders (investors) earn a designated interest on the amount loaned (principal). At some specified point in the future, the issuer must pay back the principal.