Glossary entry
Securities are financial instruments representing rights such as ownership, a debt claim, or certain investment interests. Shares and bonds are familiar examples, but the legal definition varies by jurisdiction and can include other products. The classification affects disclosure, trading, and investor-protection rules, while an instrument's economic risk still depends on its specific structure.
Illustrative example
A shareholder holds an ownership interest, while a bondholder holds a contractual debt claim. Both may hold securities, but their rights differ if the issuer fails.
What to consider
A product's label does not settle its legal status or safety. Review issuer obligations, documentation, and the rules applying in the relevant jurisdiction.
General information, not a personal recommendation. Product availability, rights, and obligations are determined by the relevant provider, jurisdiction, and approved agreements.