5.1 Securities in the Capital Market simply means a proof of ownership or debt that has been assigned a value and may be sold. It represents evidence of investment held by the security holder. It is similar to a ‘collateral’ or ‘guarantee’. It is a financial instrument that can be traded between parties in the market.
5.2 Types of securities:
There are generally three types of securities in the capital market:
a. Equity Securities.
b. Debt Securities.
c. Hybrid Securities. Others include bonds, securities, derivatives, treasury notes etc