Type of Security Instrument

1 - Debt securities

'Debt' includes instruments that require the payment of principal or interest or both at some point(s) in the future. Financial derivatives are not debt instruments, but an overdue obligation on a financial derivative contract is classified as an account payable and thus is included as a debt instrument.

2 - Equity and investment fund shares

'Equity and investment fund shares' includes all instruments and records acknowledging claims on the residual value of a corporation or quasi-corporation after the claims of all creditors have been met. Equity is treated as a liability of the issuing institutional unit. Equities comprise common and preferred shares (stocks), which represent a share in the ownership of the company. In addition, the following are also considered as equities: depository receipts, most units of mutual funds, income trusts and warrants. Equities can be part of portfolio investment or direct investment in the Balance of Payments or International Investment Position, depending upon the relationship of the issuer and the holder.