Mellorando
Banned
Securities and investments which are traded in the stock exchange in order to yield income they may carry fixed interest rates example debentures it is a general term for investment traded on a stock exchange. examples of security are shares, stocks, bonds, and debenture
Types of securities:
1 SHARES: shares can be defined as an individual portion of the company's capital owned by shareholders it is the interest which a shareholder has in a company in other words he is a unit of capital measured by a sum of money the sheer also represent the mechanism by which the shareholders of a company can have limited liability. They have single individual units example N250, N50.
2 STOCK: stock can be defined as the bundles of shares or mass of capital which can be transferred in fractional amount they have always fully paid example it could be quoted per N100 nominal value.
3 DEBENTURES:
a debenture is a document which acknowledges a loan generally under the company seal bearing a fixed rate of interest. It's usually give security for repayment of loan as well as interest it can be described as a document setting out the terms of a loan to a company, that is certificate of indebtedness. holders of debenture certificate have no voting rights.
BONDS: a bond is a security issued by the government or its agency or private institution as a means of raising funds. Bondare usually deal to be redeemable at home future date and they carry a fixed rate of interest.
*Factors affecting prices of securities:
1 the forces of demand and supply
2 activities of speculators
3 instability in price of shares
4 rate of interest on securities
5 political situation of a country
Types of securities:
1 SHARES: shares can be defined as an individual portion of the company's capital owned by shareholders it is the interest which a shareholder has in a company in other words he is a unit of capital measured by a sum of money the sheer also represent the mechanism by which the shareholders of a company can have limited liability. They have single individual units example N250, N50.
2 STOCK: stock can be defined as the bundles of shares or mass of capital which can be transferred in fractional amount they have always fully paid example it could be quoted per N100 nominal value.
3 DEBENTURES:
a debenture is a document which acknowledges a loan generally under the company seal bearing a fixed rate of interest. It's usually give security for repayment of loan as well as interest it can be described as a document setting out the terms of a loan to a company, that is certificate of indebtedness. holders of debenture certificate have no voting rights.
BONDS: a bond is a security issued by the government or its agency or private institution as a means of raising funds. Bondare usually deal to be redeemable at home future date and they carry a fixed rate of interest.
*Factors affecting prices of securities:
1 the forces of demand and supply
2 activities of speculators
3 instability in price of shares
4 rate of interest on securities
5 political situation of a country
