Wednesday, 15 April 2009

Securities

It is a paper (financial instrument) that represents something of value
It usually consists of stocks, bonds, fixed deposits, and similar things. It basically states that the
holder of security is entitled to something of value. Banks can also securitize their assets,
meaning for e.g. they converted the loans they gave into a securities that entitled the holder of
the converted security (bond) to receive principal along with interest payment.

0 comments:

Post a Comment