What is securities

Securities are financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option. They are tradable and a key part of the modern financial system. They provide a way for companies to raise capital and for investors to own a portion of the company or lend it money. The value of securities can fluctuate based on a variety of factors, including the performance of the company and the overall health of the economy.