There may also be private investment pools, which may have some characteristics of securities. Generally, securities are represented by certificates or electronic book entry interest. The certificates can be bearer or registered. Investorwords.com defines securities as "Property which is pledged as collateral for a loan" (http://www.investorwords.com/4446/security.html).
Some securities are shares of mutual funds and corporate stocks. Bonds issued by governmental agencies, stock options, limited partnership units and various other forms of investment instruments are negotiable.
Securities may be categorized as follows:
- Currency of the traded denominations
- Rights of ownership
- Term to maturity and the whole tenure
- Income payments
- Degree of liquidity
- Tax related factors
The two major security markets follow:
- Primary market: In the primary market, the currency for the securities is accepted by the issuer of securities from the investors.
- Secondary market: In the secondary market, the money is transferred from one investor to another.
More Information Related to Financial Market
Last Updated on : 26th June 2013