Securities is a collective term for all types of instruments that are convertible and represent for their owners financial value. Among the best known securities belong shares, bonds, investment certificates, participation certificates, bills or checks.
- Debt securities (such as banknotes, bonds, bills) are convertible in ordinary course of trade or in a bank
- Equity securities (e.g. shares) that are traded in a stock exchange
- Financial derivates (e.g. forwards, futures, options, swaps)
Ownership of securities thus gives their owner the property claim against the issuer of the security. Some types of securities therefore create a relationship between the debtor (in this case, the issuer of the security) and creditor (in this case, the owner of a security).
Different entities may be the issuers of securities:
|Issuer:||Securities of the issuer:|
|State||Government bond, banknote, treasury bills
|Natural Person||Bill of Exchange, Promissory Note, checks|
||Forwards, Futures, Option, Swaps|
|Mortgage bank||Mortgage bond|
|Unit trust||Unit certificate|