Securities include many kinds of investments, including stocks, bonds and ___.

Securities include many kinds of investments, including stocks, bonds and ___.

• A. Mutual funds
• B. Commodities
• C. Real estate
• D. Options contracts

Answer: (A)

Securities are tradable financial assets that represent a claim or ownership stake. Stocks and bonds are classic examples. Mutual funds fit right alongside them because they issue shares that investors buy and sell, and those shares represent an interest in a diversified pool of assets managed by the fund. The value of mutual fund shares moves with the fund’s underlying assets and income, making them a tradable security just like stocks and bonds. Commodities and real estate are typically viewed as separate asset classes, not securities in the standard sense, while options contracts are a type of security too, but the common way to complete the list of familiar investment securities is mutual funds.

Securities are tradable financial assets that represent a claim or ownership stake. Stocks and bonds are classic examples. Mutual funds fit right alongside them because they issue shares that investors buy and sell, and those shares represent an interest in a diversified pool of assets managed by the fund. The value of mutual fund shares moves with the fund’s underlying assets and income, making them a tradable security just like stocks and bonds.

Commodities and real estate are typically viewed as separate asset classes, not securities in the standard sense, while options contracts are a type of security too, but the common way to complete the list of familiar investment securities is mutual funds.