Types of Finance Security

Finance security called securities also is a type of document that can serve as evidence of ownership of bonds, stock or credit as well as ownership connected with trade derivatives. There are different ways in which securities are issued. Before now, they were printed on papers and issued as physically tangible, special paper with strong protection as a means do distinguishing it from fake. But today, this is no longer the case as they are now issued in different forms such as media (that is non cash and intangible form), as the form of entries in the account books and on magnetic form on the accounts of the negotiation. In the security market, the securities market instruments, funds or stock values refer to the objects of transactions. As mentioned above, there are different kinds of finance securities that are issued today and they include the following:

1. Equities securities: This type of finance security refers to the type of securities that do not come with any fixed interest.

2. Different kinds of debt, bank certificates, bonds, bills and others which mediate credit relations.

3. Derivatives share values: These are types of bonds which can be converted to shares after some period of time. They also refer to a type of convertible preferred shares which can be exchanged at a certain period for ordinary shares. This type of shares can also imply special securities of banks or future contracts, options or other instruments.

4. Time can also be referred to as finance securities which at their issue date are fixed.

Finance security can also be categorized. Here are the two types of securities by origin; they include the primary finance securities and the secondary finance security. The typical examples of the primary ones are bills, shares and ix. Secondary finance securities refers to the types of securities issued based on the primary security.