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What are the types of securities?

幫考網(wǎng)校2020-10-10 16:17:27
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There are several types of securities, including:

1. Stocks: These are shares of ownership in a company and represent a claim on the company's assets and earnings.

2. Bonds: These are debt securities that represent a loan to a company or government entity. They pay a fixed interest rate and have a maturity date when the principal is repaid.

3. Mutual funds: These are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.

4. Exchange-traded funds (ETFs): These are similar to mutual funds but trade on stock exchanges like individual stocks.

5. Options: These are contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and time.

6. Futures: These are contracts that obligate the buyer or seller to buy or sell an underlying asset at a predetermined price and time.

7. Derivatives: These are financial instruments whose value is derived from an underlying asset or index, such as options, futures, and swaps.
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