PPT - Security Finance | Accountancy and Financial Management - B Com PDF Download

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Security
? Asecurity, in afinancial context, is a certificate or 
otherfinancial instrument that has monetary value 
and can be traded.Securities are generally classified 
as either equitysecurities, such as stocks and 
debtsecurities, such as bonds and debentures.
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Security
? Asecurity, in afinancial context, is a certificate or 
otherfinancial instrument that has monetary value 
and can be traded.Securities are generally classified 
as either equitysecurities, such as stocks and 
debtsecurities, such as bonds and debentures.
Contd..
Securities are generally categorized into;
? debt securities (e.g., banknotes, bonds and debentures
? equity securities (e.g., common stocks)
? derivatives (e.g., forwards, futures, options and swaps).
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Security
? Asecurity, in afinancial context, is a certificate or 
otherfinancial instrument that has monetary value 
and can be traded.Securities are generally classified 
as either equitysecurities, such as stocks and 
debtsecurities, such as bonds and debentures.
Contd..
Securities are generally categorized into;
? debt securities (e.g., banknotes, bonds and debentures
? equity securities (e.g., common stocks)
? derivatives (e.g., forwards, futures, options and swaps).
Debt securities
? Debt security refers to a debt instrument, such as 
a government bond, corporate bond,certificate of deposit 
(CD), municipal bond or preferred stock, that can be 
bought or sold between two parties and has basic terms 
defined, such as notional amount (amount borrowed), 
interest rate, and maturity and renewal date. It also 
includes collateralized securities, such as collateralized 
debt obligations (CDOs), collateralized mortgage 
obligations (CMOs), mortgage-backed securities issued by 
the Government National Mortgage Association (GNMAs) 
and zero-coupon securities.
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Security
? Asecurity, in afinancial context, is a certificate or 
otherfinancial instrument that has monetary value 
and can be traded.Securities are generally classified 
as either equitysecurities, such as stocks and 
debtsecurities, such as bonds and debentures.
Contd..
Securities are generally categorized into;
? debt securities (e.g., banknotes, bonds and debentures
? equity securities (e.g., common stocks)
? derivatives (e.g., forwards, futures, options and swaps).
Debt securities
? Debt security refers to a debt instrument, such as 
a government bond, corporate bond,certificate of deposit 
(CD), municipal bond or preferred stock, that can be 
bought or sold between two parties and has basic terms 
defined, such as notional amount (amount borrowed), 
interest rate, and maturity and renewal date. It also 
includes collateralized securities, such as collateralized 
debt obligations (CDOs), collateralized mortgage 
obligations (CMOs), mortgage-backed securities issued by 
the Government National Mortgage Association (GNMAs) 
and zero-coupon securities.
Equity securities
? Equity securities usually provide steady income as 
dividends but may fluctuate significantly in their 
market value with the ups and downs in the economic 
cycle and the fortunes of the issuing firm.
2. Right to subscribe for, or convert another security 
(such as a bond) into, the common stock (ordinary 
shares) of a firm.