Investors

Question 1

Types of investors - debt securities

Answer 1

1. debt securities
   i. investor lends capital to corporation, to be repaid with interest as specified
   ii. debt holder is a creditor not an owner
   iii. types of debt securities :
   a. bonds: loans secured by a corporate asset
   b. debenture: unsecured loans

Question 2

Types of investors - equity securities

Answer 2

i. investor buys stock from the corporation, which generates capital for the business
ii. the equity holder is an owner of the corporation