Debt security

Debt securities are asset-linked claims of a creditor against a debtor. The claims are for payment of a monetary debt.

Debt securities traded on the stock market include derivatives and various kinds of bonds.

Debt securities differ from equity securities in that there is no right attached to them to participate in the company. Subject to contrary contractual arrangements, the beneficiary cannot contribute to the decision-making of the debtor or affect the way assets and revenue are used.

The creditor's claim is independent of the debtor's success.

See alsoEquity securityBondDerivatives