DFinance glossary

Debt Security

Quick definition

A financial instrument representing a debt.

Overview

A debt security is a financial instrument certifying that a sum of money is owed to its holder by another party, such as bonds or treasury notes.

Common uses

  • Financing
  • Asset investment
  • Risk management

Examples of use in small businesses

  • Issuing securities to raise funds
  • Secure investment
  • Managing trade receivables
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