JAIIB LRAB 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

Debentures

Goods

Trust Receipts

Life Policies

Gold Loan

Book Debts

Fixed Deposits

Supply Bills

Vehicle Financing