Which financial instruments are categorized as securities?

Securities are financial instruments that represent an ownership position, a creditor relationship, or rights to ownership as defined by law. The correct answer includes bonds, debentures, and options, all of which specifically fit the definition of securities.

Bonds are debt securities that are essentially loans made by investors to borrowers, typically corporations or governments. Debentures are a type of bond that is not secured by physical assets or collateral, which also makes them part of the securities category. Options are derivative instruments that give holders the right, but not the obligation, to buy or sell an underlying asset at a predetermined price before a certain date. All these instruments are regulated by securities laws and often traded on exchanges or in over-the-counter markets.

In contrast, the other options include items like real estate and currency, which do not fall under the traditional category of securities. Real estate, while it can be a form of investment, does not represent ownership or debt securities. Similarly, currency represents a medium of exchange and is not categorized as a security. Commodities and land are tangible assets and are generally not classified as securities, while shares are indeed a type of security but cannot be grouped with real estate under the definition of securities.