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
Stocks and Shares