Securities represent obligations on the part of issuers-businesses and governments-to provide purchasers with expected or stated returns on the funds invested or loaned.

Question

Quizplus · Accepted Answer

Securities are financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option. They are issued by businesses and governments as a means of raising funds by promising to provide returns to investors.

Securities Represent Obligations on the Part of Issuers-Businesses and Governments-To