§ 1100 Public Securities Definition

• •Public securities are like IOUs from the government or public groups.
• •They can be bonds, notes, or other papers that promise to pay money back.
• •These papers might have little tickets (coupons) for interest payments.

A city wants to build a new park but doesn't have enough money.

The city can sell bonds (a type of public security) to people. The city promises to pay the money back later with a little extra (interest). The bonds might have coupons that the person can cash in to get the interest money.