| Investment securities refer to the documents | | | | way for saving for the future. |
| that show that, one has lent money to a | | | | Saving for the future could mean having a |
| company or even to the government. The | | | | retirement plan, or saving to buy a home or |
| money is refundable upon an agreed period of | | | | saving for your children education. If the purpose |
| time. The documents are purchased most | | | | for example is to accumulate money for |
| commonly through the stock market. There are | | | | immediate use, securities like government |
| many types of investment securities available in | | | | treasury bills may not be the best to go for. This |
| the stock market today. However, they call for | | | | is because they take a long time to mature and |
| proper scrutiny before one can buy them | | | | earn dividends. They may therefore be best |
| because, what may be favorable in one situation | | | | suited for future plans like retirement or use |
| or for one person, may not necessarily apply to | | | | during a long planned for holiday or vacation. |
| another. | | | | It is wise to be informed on the different types |
| The securities range from bonds, stocks, mutual | | | | of investment securities available in the market |
| funds, treasury bills and bonds, shares among | | | | today. They are mostly classified into two |
| others. The rates of returns vary greatly | | | | categories, namely; equity securities, which include |
| depending on the type of security and the risk | | | | common stocks and debt securities, which include |
| involved in each. Before an investor can buy the | | | | bank notes, treasury bills and bonds. The |
| securities, there are some factors that need | | | | institution from which one buys the securities is |
| consideration. One needs to identify what it is that | | | | known as the issuer. One needs to be careful |
| they hope to achieve by buying the securities. Is | | | | about the insurer he chooses to work with |
| the investment for the purpose of gaining more | | | | especially because of the commission charged. |
| money for immediate use, or is it merely as a | | | | |