Securities
Securities refer to financial instruments that hold monetary value and can be traded. They represent an ownership position in a company (through Stocks), a Creditor relationship with a government body or Corporation (through Bonds), or rights to ownership as represented by an option.
Examples of securities include:
- Stocks: Shares in a company, such as Apple Inc. (AAPL) or Tesla Inc. (TSLA).
- Bonds: Debt securities issued by Corporations or governments, like U.S. Treasury Bonds or corporate Bonds from companies like Microsoft.
- Mutual Funds: Pooled investment vehicles that hold a diversified portfolio of Stocks and Bonds.
- Options: Contracts that give the holder the right to buy or sell an Asset at a predetermined price before a specified date.
Cases involving securities often deal with regulations and laws such as the Securities Act of 1933 and the Securities Exchange Act of 1934, which aim to protect investors and ensure transparency in the markets.