Type of financial security in which firms do not borrow money rather lease their assets is classified as

Preferred stocks are a type of equity security that gives the holder a priority claim on the company’s assets and earnings. Common stocks are a type of equity security that gives the holder a claim on the company’s assets and earnings, but does not have a priority claim over preferred stocks. Corporate stocks are a type of equity security that represents ownership in a corporation.

In conclusion, the type of financial security in which firms do not borrow money rather lease their assets is classified as leases.