jonathan crowther explains the bewildering array of different securities available
A security is a means of participating in a business, utility or government body. The participation is usually in the form of debt or equity, where the downside risk is limited to the amount invested. This contrasts with participation in ventures such as Lloyd"s of London or enterprises such as professional partnerships where the downside risk can be unlimited. Specific balance sheet assets, such as mortgage debts, can also be securitised, as can specific income flows, such as gilt "strips" (specific future interest payments on UK government debt dealt with as securities in their own right...
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