Types of Securities

The securities usually accepted by bankers and finance companies are as follows:

(i) land;
(ii) debentures;
(iii) contract moneys and book debts;
(iv) life policies;
(v) stock and shares;
(vi) cash;
(vii) goods and produce;
(viii) ships;
(ix) guarantees

Meaning of Securities

Securities are usually taken at the outset before the loans and advances are disbursed. Almost anything of monetary value can be taken as security eg diamonds, antiques and paintings. The problem is with their acceptance.