Unit – 15 : Various Types Of Securities
The requisites of a good and acceptable security are as follows:
- The borrower should have a good title to the security.
- It should be easily and freely transferable.
- It should not have any encumbrance or liability for, e.g., partly paid shares.
- It should be easily marketable.
- It should not be liable to wide price fluctuations.
- Its value should be easily ascertainable.
- Its storing should not be difficult.
- It should be durable.
- It should be easily transportable.
Various Kinds of Securities
- Land/Real Estate
- Stocks and Shares
- Trust Receipts
- Life Policies
- Gold Loan
- Book Debts
- Fixed Deposits
- Supply Bills
- Vehicle Financing