Ever heard your capital market consultant talk about securities and wonder what they actually meant?

google.com, pub-4436339061114352, DIRECT, f08c47fec0942fa0

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

By admin