What are securities write any two features of security

Securities commonly refers to any form of negotiable financial instrument that holds some type of
monetary value.Its legal definition varies by jurisdiction where in some cases the term excludes
financial instruments other than equities and fixed income instruments and in some areas it includes
some instruments that are close to equities and fixed income, e.g., equity warrants.

Securities can be broadly categorized into two distinct types:Debts and Equities

Debt Security refers to money that an entity has borrowed and is obliged to pay back. All the
arrangement is pre decided in advance, including amount of money to be borrowed, at what interest
rate, plus renewal or maturity date.

A certificate of deposit (CD), for example, is a security. So are corporate bonds, government bonds,
and preferred stock.

Equity security refers to the ownership interest in a company by shareholders, such as shares . A
holder of an equity security can profit from capital gains.

If the company makes a good profit, the equity security holder shares in this gain. This is not the case
with a holder of a debt security. A debt security only gives you interest and the repayment of the
capital