Securities
Are the monetary instruments, which show relationship between the person, who created it and its owner [Н. Краус, К. Краус, p.140].
The term "securities" refers to a fungible, negotiable financial instrument that holds some type of monetary value. A security can represent ownership in a corporation in the form of stock, a creditor relationship with a governmental body or a corporation represented by owning that entity's bond; or rights to ownership as represented by an option. There are primarily three types of securities:
Equity securities – represents ownership interest held by shareholders in an entity (a company, partnership, or trust), realized in the form of shares of capital stock, which includes shares of both common and preferred stock.
Debt securities – represents borrowed money that must be repaid, with terms that stipulate the size of the loan, interest rate, and maturity or renewal date.
Hybrid securities – combine some of the characteristics of both debt and equity securities. Examples of hybrid securities include equity warrants (options issued by the company itself that give shareholders the right to purchase stock within a certain timeframe and at a specific price), convertible bonds (bonds that can be converted into shares of common stock in the issuing company), and preference shares (company stocks whose payments of interest, dividends, or other returns of capital can be prioritized over those of other stockholders) [Investopedia].
What are Financial Securities? Examples, Types, Regulation, and Importance. Investopedia. Retrieved from: https://www.investopedia.com/terms/s/security.asp