Last updated on
January 14, 2022

Securities are financial instruments that are traded to raise capital in private and public markets. While it is common to refer to all tradable financial assets as securities, there are some jurisdictions that differ on what can or cannot be called a security depending on the financial asset traded.

There are three main types of securities. Debt securities, Equity securities, and Derivatives. Debt securities are securities that are issued by a person, company, or government and sold to another party for a set amount with the promise of repayment plus interest. They include a fixed amount (that must be repaid), a fixed interest rate, and a maturity date. Equity securities are financial instruments or tradable financial assets that represent the ownership of a portion of a company or corporation.

Nigerian Context

In Nigeria, the public trade of securities is regulated by the Securities and Exchange Commission and is carried out in the Nigerian Capital Market.

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