1. What are securities
Securities means all types of legal documents that are documented and represent certain rights. It is used to demonstrate that the holder of the securities is entitled to a legitimate interest in the content of the documents in its possession. In a general sense, securities are documents used to prove or create rights, which indicate that the holder or third party of the securities is entitled to the specific interest represented by the securities or to prove that it has committed an act. Securities may take the form of paper or other forms prescribed by the securities regulator。
2. What types of securities are included
(1) securities may be divided into government securities, government agency securities and corporate securities, depending on the issuer。
(2) securities may be divided into listed and unlisted securities, depending on whether they are traded on the stock exchange。
(3) by collection, marketable securities may be divided into public and private securities。
(4) by the nature of the rights they represent, marketable securities can be classified into three broad categories of stocks, bonds and other securities。
3. What are the characteristics of the security
(1) profitability. The yield of securities means that the holding of the securities itself can generate a certain amount of proceeds in return for the transfer of ownership or use of capital by the investor。
(2) liquidity. The liquidity of securities refers to the ease of realization of securities。
(3) risk nature. The risk nature of securities is the deviation of the actual proceeds from the expected proceeds or the uncertainty of the proceeds of securities。
(4) duration. Bonds typically have a clear repayment period to meet the needs of different financiers and investors for the duration of the financing and associated rates of return. The duration of the bond is legally binding and protects the interests of both financiers. Equities have no term and can be considered as open-ended securities。
