Which of the following are considered primary types of securities?

Prepare for the Kaplan SIE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Get exam-ready now!

The primary types of securities are typically classified into three main categories: stocks, bonds, and certain investment products like mutual funds. Stocks represent ownership in a company, while bonds are debt instruments that signify a loan made by the investor to the issuer.

Mutual funds are also included as they pool money from many investors to purchase a diversified portfolio of stocks and bonds, making them a key component of the securities market. Options, while common in trading, fall under a different category of financial instruments known as derivatives, which derive their value from underlying assets and are not classified as primary securities.

By selecting the option that includes stocks, bonds, mutual funds, and options, the answer encompasses core components of the securities market and reflects a comprehensive understanding of securities classification. Recognizing these distinctions is key to navigating investments and understanding how different financial instruments function within the broader market.

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