- Securities are tradable financial instruments used to raise capital in public and private markets. There are four main types of security: debt securities, equity securities, derivative securities, and hybrid securities, which are a combination of debt and equity. When businesses issue securities in the form of stocks and bonds, investors buy them and provide the company with the capital it needs. Once these securities have been issued, they can then be traded between investors on the secondary market.
Securities are tradable financial asset. Securities commonly refer to any form of financial instrument though its legal definition varies by jurisdiction. Stocks, bonds, preferred shares, and warrants are among the most common examples of transactable securities. Money market instruments, futures, options, and hedge fund investments can also be marketable securities. Company Securities means shares of Company capital stock and all rights to purchase or otherwise acquire any shares of Company capital stock, including Company Options.