Ever heard your capital market consultant talk about securities and wonder what they actually meant?
In capital market equities and securities are traded and exchanged. we have primary and secondary capital market .
An example of a primary market is stock market,a primary market like the stock market is where stock are listed for trading.
An example of a secondary market is the bond market. the word securities in the capital market is quite restictive.
Accordingly securities are defined to mean the following: debentures,stocks or bonds ,(whether issued or proposed to be issued by government),
ii. debentures,stocks ,shares, bonds or notes issued or proposed to be issued by a body corporate or unincorporated.
iii. Any right or option in respect of any such debentures,stocks,shares,bonds or notes:
iv. Any interest as defined in the relevant section of companies and allied matters Act.
v. futures contracts
vi.bills of exchange
vii. promissory notes or certificates of deposit issued by a bank which has tenure of not less than nine months.
This therefore follows that a person who has interest in a company,interest such as shares,stock,debenture or bond has securities.
The process involved in acquiring any of these securities differ,but you must insist your interest in the company be registered