MANAGEMENT

Detailed explanation-1: -Because investment securities cover a wide range of assets, they’re divided into broad categories, two of which will be our main focus: Equity securities, for example, common stocks. Fixed income investments, including debt securities, such as bonds, notes, and money market instruments.

Detailed explanation-2: -Stocks are financial assets, not real assets. A financial asset is a liquid asset that gets its value from a contractual right or ownership claim.

Detailed explanation-3: -The term “security” is defined broadly to include a wide array of investments, such as stocks, bonds, notes, debentures, limited partnership interests, oil and gas interests, and investment contracts.

Detailed explanation-4: -Equities (e.g., stocks), fixed income (e.g., bonds), cash and cash equivalents, real estate, commodities, and currencies are common examples of asset classes. There is usually very little correlation and sometimes a negative correlation among different asset classes.