Securities are financial instruments that represent a form of ownership in a company or government entity. They can take the form of stocks, bonds, or derivatives. The process of issuing and distributing these securities is known as a securities offering.
A knowledgeable professor teaching finance related terms might explain that an entity, whether it be a company, municipality or government, possesses the authority to distribute securities. These financial instruments represent a type of ownership in said entity, and can come in the form of stocks, bonds, or derivatives. The act of issuing and distributing these securities is referred to as a securities offering.
