This document defines and describes various types of security and non-security marketable and non-marketable financial assets. It discusses equity shares, preference shares, bonds, debentures, convertible securities, hybrid securities, derivatives, and various money market instruments. It also covers non-security assets such as fixed deposits, gilt-edged securities, and post office savings schemes.

2. Security/Marketable Financial Assets
• Equity Shares : Equity Capital represents ownership
capital. Equity shareholders collectively own the
company. They bear the risk and enjoy the rewards of
ownership
• Preference Shares : A preference share has preferential
right to be paid dividend during the life-time of the
company and they have a preferential right to the return
of capital when the company goes into liquidation.
• Bond : A bond or fixed income instrument is a contract
that requires the borrower to pay the interest income to
the lender. It resembles the promissory note issued by
the govt and corporate

3. • Debentures : A debenture is a document under the company’s
seal which provide for the payment of principal sum and
interest theron at regular intervals, which is usually secured by
a fixed or floating charge on the company’s property or
undertaking and which acknowledges a loan to the company.
• Convertible Securities : A convertible security is a security that
can be converted into another security. Convertible securities
may be convertible bonds or preferred stocks that pay regular
interest and can be converted into shares of common stock
• Hybrid Securities : Term used to describe a security that
combines elements of debt securities and equity securities.
• Derivatives : an arrangement or product (such as a future,
option, or warrant) whose value derives from and is dependent
on the value of an underlying asset, such as a commodity,
currency, or security.

4. • Money Market Instruments :
• Commercial Bill : a bill of exchange issued by a commercial
organization to raise money for short-term needs.
• T Bills : A treasury bill (T-Bill) is a short-term debt obligation
backed by the government with a maturity of less than one year.
• Commercial Papers (CP) : short-term unsecured
promissory notes issued by companies.
• Certificates of Deposits :a certificate issued by a bank /
other financial institution to a person depositing money for a
specified length of time at a specified rate of interest.

5. Non-Security/NonMarketableFinancialAssets
• Fixed Deposits/ Term Deposits : A fixed deposit (FD) is a
financial instrument provided by banks which provides investors
with a higher rate of interest than a regular savings account, until
the given maturity date. It may or may not require the creation of a
separate account.
• Gilt-Edged Securities : Debt securities issued by the central
govt. agencies are referred to as government securities or gilt-edged
securities.
• Post Office Schemes/Deposits :
• National Savings Certificates (NSC) National Savings Certificates,
popularly known as NSC, is an Indian Government Savings Bond,
primarily used for small savings and income tax saving
investments in India. It is part of the postal savings system of
Indian Postal Service (India Post).