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SECURITIES
Financial Products Consulting and Training (FPTC) specialises in providing consultancy and training services in the field of financial securities. Financial security instruments refer to investment vehicles or products that represent ownership or a claim on an underlying asset or cash flow. These instruments are utilised by individuals and institutions to invest their funds, diversify portfolios, and mitigate risks.
SECURITY TYPES
Financial security instruments provide investors with diverse options to allocate capital, generate returns, and mitigate risk according to their financial objectives and risk tolerance. Prior to investing in any financial security instrument, conducting comprehensive research and seeking professional advice is crucial. Presented below are several commonly encountered types of financial security instruments:
Stocks
Stocks represent ownership in a company and provide shareholders with a claim on the company's assets and earnings.
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Bonds
Bonds are debt instruments issued by governments, municipalities, or corporations. They represent loans made by investors to the issuer, who promises repayment with interest over time.
Treasury Securities
These are debt instruments issued by governments, such as Treasury bills, notes, and bonds. They are considered low-risk investments.
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Options
Options are derivative contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified time period.​
Futures
Futures contracts are agreements to buy or sell an underlying asset at a predetermined price on a specified future date.
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Mutual Funds
Mutual funds pool money from multiple investors and invest in a diversified portfolio of stocks, bonds, or other securities.
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Exchange-Traded Funds (ETFs)
ETFs are similar to mutual funds but trade on stock exchanges like individual stocks. They provide exposure to a specific market index or sector.
Real Estate Investment Trusts (REITs)
REITs are companies that own or finance income-generating real estate properties. Investors can buy shares in REITs and earn returns from rental income and property appreciation.
Certificates of Deposit (CDs)
CDs are time deposits offered by banks with fixed interest rates and specified maturity dates. They are considered low-risk investments.
Preferred Stocks
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Preferred stocks have characteristics of both stocks and bonds. They provide a fixed dividend to shareholders and have a higher claim on the company's assets compared to common stocks.
Convertible Securities
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Convertible securities, such as convertible bonds or preferred stocks, can be converted into a predetermined number of common shares of the issuing company.
Mortgage-backed Securities (MBS)
MBS are created by pooling together mortgage loans and selling them to investors. They provide a way to invest in the income generated from mortgage repayments.