CAPITAL MARKET INSTRUMENTS
The Securities or instrument traded in the capital market can be divided into two, Equity and
Bonds.
I. EQUITY STOCK OR ORDINARY SHARES
These are issued to the owners of a company. Stock owners represents cash investment in the future of the company, the investors owns part of the company and shares in its profit as evidenced by the stock certificate issued.
II. BONDS
Bond is a long-term debt raised by a government (federal, state, or local) or a company for which interest is paid, it is usually half yearly and at a fixed rate. Holders of bonds are long-term creditors of the (government or company) Government bonds are usually regarded as developing stocks.
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