Tuesday, February 3, 2015

what is share market Securities

You might have heard about securities. It is not security person who stands near gate. Investment options available in share market such as Stocks, Mutual Funds, Bonds, Debentures etc. In combination termed as securities. All securities, in India, are controlled by Govt. of India by Security Exchange Board of India (SEBI). Other countries may be having different Govt. boards to control.
A financial instrument that represents: an ownership position in a publicly-traded corporation (stock), a creditor relationship with governmental body or a corporation (bond), or rights to ownership as represented by an option. A security is a fungible, negotiable financial instrument that represents some type of financial value. The company or entity that issues the security is known as the issuer.

For example, the issuer of a bond issue may be a municipal government raising funds for a particular project. Investors of securities may be retail investors - those who buy and sell securities on their own behalf and not for an organization - and wholesale investors - financial institutions acting on behalf of clients or acting on their own account. Institutional investors include investment banks, pension funds, managed funds and insurance companies.

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