Definition of Equity Securities

by | Jun 3, 2008 | Equity Shares

Equity securities are represented by ownership shares as common stock or preferred stock, rights to acquire ownership shares such as stock warrants or rights or call options. It also includes rights to dispose of ownership in shares by way of put options. It should be noted that equity securities do not include preferred stock that are redeemable at the option of the investor or stock that is redeemed by the issuer, own stock purchased by the company often known as treasury stock and convertible bonds.

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