What Do You Understand By Securities Market? What Are The Different Types Of Securities Market?

Securities Market

Securities Market is the financial market for securities such as securities of stocks, stocks options, corporate bonds, credit, notes, preferred stock, bonds, debentures, and warrants, debt instruments, corporate bonds, commercial paper, and money market instruments. It is similar to banking market as both are both financial and transactional.

Types of Security Market

1. Debt securities: are issued by banks in the form of debt papers like debentures. They are traded in the market. The investment in a bank debentures is similar to equity shares in a stock exchange. They are also known as bank capital or bank loans.
2. Equity securities: are shares of companies such as stocks of publicly traded companies. These shares are bought by individual investors and firms. They are more popularly known as stocks. Equities are generally considered to be one of the most promising assets among investment managers.
3. Derivatives securities: When it comes to the derivative securities, the most popular ones include: interest rate and commodity derivatives, foreign exchange, equity, fixed income, foreign exchange, credit derivatives, exchange-traded funds and collateralized debt obligations.