Answer :

Stock or equity securities are owners. Bonds or debt securities for lenders A security is, in the most basic sense, an investment that symbolises either an ownership stake or a debt position.

An ownership stake is equivalent to purchasing stock in a firm and taking a stake in it. Most frequently, bonds issued by an insurer are used to purchase a debt instrument. Securities that represent shares of a corporation are known as equity securities. Financial instruments known as debt securities specify the terms of a loan between an issuer (a borrower) and an investor (lender). Debt securities and certificates of deposit are examples of fixed income investments, which are investments that focus on interest income.

These securities are often issued for a specific amount of time and are due at the end of that term. They can also be referred to as debentures, bonds, notes, or deposits. Bonds, such as corporate or governmental bonds, are one of the most prevalent types of debt security mechanisms.

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