Financial securities are tradable financial instruments that represent an ownership position, a creditor relationship, or rights to ownership. They can be categorized into two main types: equity securities, like stocks, which give investors a share in a company, and debt securities, like bonds, which represent loans made by investors to borrowers. Investors buy and sell these securities in financial markets to earn returns, manage risk, or achieve specific financial goals. The value of financial securities can fluctuate based on various factors, including market conditions, economic indicators, and company performance, making them an essential component of investment strategies.