Expert: Doug Ingram - 10/5/2006

Question
Can you please explain to me the difference between bonds and other securities?  

Answer
For the most part, the terms are used interchangably.
Securities are "secured debt" where stock is unsecured.
Mortgage Backed Securities (backed by mortgages) are rarely called bonds, because bonds are usually debt of the federal, state, or local governments or corporations.
Securities encompasses a wide array of most investments that are not equities (stocks).
All bonds are securities, but securities includes other debt intruments that pay principal or interest (or both) and have some sort of real or implicit guarantee of payment.