Securities; meaning, types, shares, stocks, bonds, gilt-edged and debentures. - SS3 Commerce Past Questions and Answers - page 1

Ownership or debt in a company or government entity.

Shares represent ownership, while bonds represent debt.

Debt securities issued by governments.

To pay fixed interest payments to investors.

To raise capital for companies and governments.

Shareholders have a claim on the company's assets and earnings. They can potentially receive dividends (profits distributed by the company) and have the right to vote on certain matters related to the company's operations.

Gilt-edged securities are debt securities issued by governments and are considered low-risk investments. They pay fixed interest payments and are backed by the government's creditworthiness. On the other hand, debentures are long-term debt securities issued by companies, paying interest to investors. They represent company debt and are not backed by specific assets.