Debt securities are financial instruments that represent a loan made by an investor to a borrower, typically a corporation or government. When investors purchase these securities, they are essentially lending money in exchange for periodic interest payments and the return of the principal amount at maturity. Common types of debt securities include bonds, debentures, and notes. These securities are often used by organizations to raise capital for various purposes, such as funding projects or managing cash flow. Investors are attracted to debt securities for their relatively stable returns and lower risk compared to equity securities, making them a popular choice for conservative investment strategies.