What are securities typically referred to in financial contexts?

In financial contexts, securities are primarily referred to as shares and bonds. Securities represent financial instruments that hold some form of monetary value and can be traded. Shares, also known as stocks, give ownership stakes in a company, allowing investors to partake in the company's profits and growth. Bonds, on the other hand, are debt instruments issued by corporations or governments, where the issuer borrows money from investors with a promise to pay back the principal along with interest at a later date.

The term “securities” encompasses this dual definition, making it clear why shares and bonds are the focal point in the context of investments and financial markets. They are crucial tools for raising capital, enabling both companies and governments to fund their operations and projects.

In contrast, while assets held by the company are important in understanding a company’s overall financial health, they do not specifically define securities. Short-term cash equivalents refer to highly liquid financial instruments that are not considered securities in the traditional sense of investment vehicles that represent ownership or creditor relationships. Lastly, liabilities owed by the company represent debts or obligations and, while related to the overall capital structure, are not classified as securities. Thus, shares and bonds are the definitive elements that make up what securities signify in finance.