This is a security such as a bond or debenture, in which a specific amount is owed to the purchaser of the security. These are sometimes referred to as fixed-income assets. Equity Security . This is a security such as a common or preferred stock in which the purchaser of the security actually purchases a piece of the company and is an owner of the company. The issuer is the entity from which the security is derived.
Mutual funds are the issuers of their shares or units.
Government Backed or Guaranteed . The U.S. government guarantees that if you buy its bonds, it will pay the amount shown on the face of that bond. This does not guarantee that the market price will remain constant, and for that reason, a fund fully invested in government securities may still fluctuate in value. This is because interest rates and the prices of existing bonds move in opposite directions. Call feature .