A contract that makes the owner of a security a part owner of the company that issued the security is known as

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An equity security represents ownership in the issuing company and entitles the holder to voting rights and a share in the company's profits. This contrasts with a debt security, which represents a loan made to the issuing company and entitles the holder to periodic interest payments and eventual repayment of principal. Bonds are a type of debt security, while options are a financial derivative that provides the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and time.

A Contract That Makes the Owner of a Security a Part