Securities are financial instruments that represent ownership or a creditor relationship with an entity. They can be categorized into two main types: stocks, which signify ownership in a company, and bonds, which are loans made to corporations or governments. Investors buy securities to earn returns, either through price appreciation or interest payments. When you purchase a security, you are essentially investing in the potential growth or income of that entity. The value of securities can fluctuate based on market conditions, company performance, and economic factors. Understanding securities is essential for anyone looking to invest and grow their wealth.