The type of securities that the stock exchange deals with are

Assessment: JAMB UTME - Commerce - 1998 Subject: Commerce

Question 1 Report

The type of securities that the stock exchange deals with are
Answer Details
The type of securities that the stock exchange deals with are stocks, shares, bonds, and warrants. Stocks or shares are units of ownership in a company, and owning them means you own a portion of that company. Bonds, on the other hand, are loans made by investors to companies or governments. When a company or government issues bonds, they promise to pay back the money with interest after a specified period of time. Warrants are a type of financial contract that give the holder the right, but not the obligation, to buy or sell a specific asset at a specific price within a certain time frame. Warrants are often issued by companies as a way to raise money, and they can be traded on the stock exchange. Overall, the stock exchange is a marketplace where investors can buy and sell these different types of securities, allowing companies and governments to raise funds and investors to earn a return on their investments.

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