Fixed-interest securities provide defined interest payments and are considered lower-risk investments. Examples include gilt-edged securities, bonds, preference shares, and debentures.
A stock represents ownership in a company and constitutes a claim on part of the company's assets and earnings. Stocks can come in diverse forms such as fixed-interest securities or ordinary shares.
An undated security is a fixed-interest security that does not have a redemption date. These securities perpetually generate a set interest payment without a requirement for the principal to be returned at a specific future date.
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