Financial assets that reflect a corporation's shares are known as Equity Securities.

They represent a claim on a company's earnings and assets. Common stock is the most
common sort of equity investment. The ownership percentage that you possess in a controlling
company is based on how much percent you own on total shares or security stocks that was
issued by a company you invested in. Debt securities are financial instruments that outline the
terms of a loan between a borrower and a lender. It includes fundamental terms stated, such as
the amount borrowed (principal amount), interest rate, maturity date or renewal dates between
two parties. Most of the time, you're lending money to collect interest payments on the money
you've borrowed. Therefore, Bond Securities are less unpredictable and risky than Equity
Securities, since they can provide more consistent and stable returns when held to maturity.
Bonds uphold the promise of their issuer to return the face value of the security to the holder on
the agreed maturity date, while the issuer of stocks does not make such a promise.

• Treasury Bills – They are known to be the most risk-free investment because of being fully
backed up by the government. They are a means for the government to generate revenue from
the general public.

• Corporate Bonds - It is a type of debt that a firm issues to raise funds. The risk is based on
the financial stability and performance of the company issuing the bonds, because if the firm
goes bankrupt, it may be unable to repay the bond's value or provide any return on investment.

• Preferred Stocks - In the case of liquidation, preferred investors have a stronger claim on
assets and distributions than common stockholders, but less than bondholders.

• Common Stocks – It represents a company's equity ownership. The risk of owning common
stock is that any anticipated profit, as well as the money paid for the shares, could be lost if the
share price falls below the initial price.

Asset-backed securities are backed by assets such as loans, receivables, and leases,
whilst mortgage-backed securities are backed by mortgages. In ABS, the investor receives all
interest and principal payments, but he or she also undertakes all risk associated with the
underlying assets. Investing in MBS is only as safe as the mortgage loans that back it up.

As stated in the Efficient Market Hypothesis (EMH) stocks always sell at their fair market
value on exchanges, making it impossible for investors to buy low stocks or sell for inflated
prices. Once new information enters the market, it is immediately deliberated in stock prices.
Therefore, technical analysis and fundamental research can't assist an investor to outperform a
portfolio of randomly chosen stocks.