Question

What are the four major categories of securities? How are they evaluated?

Answer 1

Answer:

Cash, Bonds, Stocks and Mutual funds

Step-by-step explanation:

The four major categories of securities are:  

1. Cash
2. Bonds
3. Stocks
4. Mutual funds

These 4  major categories are evaluated as given below:  

• Cash: Cash is your normal money. You can use it to buy your everyday goods and services or invest in cash in various asset classes.

• Bonds: Bond is debt instrument and bonds are the agreement of debt. and bonds carry coupon rate that is (interest equivalent), tenure and final capital repayment

• Stocks: Ownership of stock in a company. A group (or a single) share of any company is called stock. Stock means you have some stake in the company.

• Mutual Funds: A mutual fund is an asset basket that can hold cash, bonds, stocks, real estate, and so on. The type and structure of mutual funds will vary depending on the client's choice of the fund manager and the category of the category