Respuesta :
Small-company stocks is a category of securities had the highest average annual return for the period 1926–2019.
What are Securities
Securities are bonds that can be converted into money or cash quickly. Its liquid nature allows securities to be traded or sold quickly. Securities are also interpreted as a form of ownership of the assets or wealth of companies that issue securities.
But now the use of the term securities refers more to stocks, bonds, and other investment products, rather than being interpreted as a form of investment ownership.
Types of Securities
Securities can be divided into 2 types, namely:
- Debt. Debt securities are proof of debt ownership in the form of securities that depend on the due date for payment or other characteristics. These types of securities usually include government bonds and bonds, certificates of deposit, and collateralized securities. Usually these types of securities are valid for a certain period of time, which can then be redeemed eventually.
- Equity (eg bonds and stocks). This type of security is ownership by shareholders in an entity, for example in a company, which is obtained in the form of shares and includes ordinary shares and preferred shares. The holders of shares usually obtain the right to control the company through voting rights.
Learn more about securities at https://brainly.com/question/8293680.
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