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Types of Financial Securities

Capital Markets Which Consist of:
Capital Markets Which Consist of:

Capital markets consist of suppliers and users of funds. Suppliers of funds include households and institutions serving them, such as pension funds; life insurance companies; charitable foundations such as colleges, hospitals, and religious institutions; and nonfinancial companies generating cash beyond their needs for investment.

Debt Securities (eg, Banknotes, Bonds and Debentures)
Debt Securities (eg, Banknotes, Bonds and Debentures)

A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into: debt securities (such as banknotes, bonds and debentures), equity securities, e.g., common stocks; and, derivative contracts, such as forwards, futures, options and swaps.

source: isin.net
Derivatives (eg, Forwards, Futures, Options, and Swaps)
Derivatives (eg, Forwards, Futures, Options, and Swaps)

Worldwide in the 1990's these securities provided "insurance" on an estimated $16 trillion of financial securities. In 2007, according to the International Swaps and Derivatives Association the notional value of all financial swaps was $587 trillion worldwide. The gross domestic product of the entire world in 2008 was only about $60 trillion.

source: sjsu.edu
Equity Securities (eg, Common Stocks)
Equity Securities (eg, Common Stocks)

Financial securities, also referred to as financial instruments or financial assets, is a generic term used to describe stocks, bonds, money market securities (e.g., treasury bills), and other instruments representing the right to receive future benefits under a set of stated conditions.

Equity Securities are Shares of a Corporation
Equity Securities are Shares of a Corporation

Securities are basically in three forms; debt securities, equity securities and contracts. Moreover, shares are a type of equity security that comprises the ownership certificate of a corporation. The return of a share investment is the dividend paid by the corporation plus the increase in the market value of the shares.

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