Bonds are included in the definition of the term "security."

Question

Quizplus · Accepted Answer

Bonds are a type of security because they represent an investment in which the investor loans money to a company or government entity in exchange for regular interest payments and the return of the principal investment at maturity. Securities are broadly defined as financial instruments that can be bought and sold in financial markets, and bonds are a common type of security along with stocks, mutual funds, and other investments.

Bonds Are Included in the Definition of the Term "Security