Entry

What is a Security?

Apr 18th, 2000 10:58
Alexander Frauenfeld,

In the simplest terms, a security is an investment that represents 
either an ownership stake or a debt stake in a company. An investor 
becomes a part owner in a company by buying shares of the company's 
stock. A debt security is usually acquired by buying a company's bonds. 
A debt instrument is a load to a company in exchange for interest 
income and the promise to repay the loan at a future maturity date.