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Questions and Answers
Which type of security represents an ownership position in a publicly-traded corporation?
Which type of security represents an ownership position in a publicly-traded corporation?
What are the four main types of security mentioned in the text?
What are the four main types of security mentioned in the text?
What does Republic Act No. 8799 or the Securities Regulation Code define as securities?
What does Republic Act No. 8799 or the Securities Regulation Code define as securities?
Which type of security is a combination of debt and equity?
Which type of security is a combination of debt and equity?
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What is an example of a derivative security?
What is an example of a derivative security?
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Study Notes
Types of Securities
- A stock represents an ownership position in a publicly-traded corporation.
- The four main types of securities are:
- Equity securities (e.g., stocks)
- Debt securities (e.g., bonds)
- Hybrid securities (e.g., convertible bonds)
- Derivative securities (e.g., options, futures)
- Republic Act No. 8799 or the Securities Regulation Code defines securities as "investments of any kind, whether in the form of debt or equity".
- Hybrid securities, such as convertible bonds, are a combination of debt and equity.
- An example of a derivative security is an option, which is a contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price.
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Description
Test your knowledge of different types of securities with this quiz on debt securities, equity securities, and derivative securities. Learn about the various financial instruments traded in the open market and enhance your understanding of the different classes of securities.
