FOR M S O F S EC U R I T IE S

SECURITIES
It is a financial instrument or financial asset that can
be traded in the open market. Securities imply
company ownership, creditor relationship, or
ownership rights through options.
STOCKS
BONDS
PREFERRED SHARES
OPTIONS CONTRACT
EQUITY
It represents ownership interest held by shareholders
in a company. Holders of equity securities can benefit
from capital gains by selling stocks.
DEBT

WHAT IS DEBT SECURITY?

It represents borrowed money that must be repaid, with
terms that stipulate the size of the loan, interest rate and
maturity or renewal date.
Debt securities includes government and corporate
bonds, certificate of deposit (CD’s) and collateralized
securities (such as CDO’s and CMO’s) generally entitle
their holder to the regular payment of interest and
repayment of principal.
Debt securities can be secured (back by collateral) or
unsecured and if secured, may be contractual
prioritized over other unsecured, subordinated debt in
the case of a bankruptcy.
HYBRID
It is a type of security that combines the characteristics
of both debt and equity.
Similar to bonds, typically promise to pay a higher
interest at a fixed or floating rate until a certain time in
the future.