Initially, the purview of investments was extremely restricted with maximum people investing only in real estate. The 20th century brought along immense growth, development and enhancement of the financial systems and market. The greatest difference was reflected in terms of investment tools, instruments and avenues. This was the beginning of the phenomenon of securities market that completely changed the definition and profile of investments in the world.

Security Concerns:

Securities completely revolutionized the way in which people invested their personal income. Before moving further, it is important to understand the exact meaning and components of investment securities. Investment securities refer to the purchase of stocks, bonds, treasury bills and debentures. Stocks refer to the purchase of shares of a specific company or industry. There are various types of bonds, namely government bonds, corporate bonds and such other investment bonds. Securities also include money market instruments like commercial papers, bankers acceptances and such other instruments. Hence, apart from investing in real estate, people can invest in the instruments given above and get great returns from them.

Security Instruments:

There are several types of securities that are used as significant investment instruments by individual investors as well as commercial investors. The main securities are described as follows:

1) Shares: Shares can be defined as a unit of account of different instruments like stocks, mutual funds and limited partnerships. Business firms and corporations raise capital for further investments by floating their shares in the market. When individuals purchase the shares of a company, they are the owners of the company equivalent to the value of the shares purchased. The term shares• implies to the following securities:

• Stocks: Stocks refer to the amount of capital collected by the total sales of the shares of the company. The amount of shares issued and distributed by a company determines the stocks.

• Mutual Funds: Mutual fund is mainly a form collective investment instrument. A mutual fund company collects money from several small investors and invests the collected money in various other bonds, money market instruments and other securities. The mutual fund companies also collect the premium on behalf of the investors. The share of a mutual fund is referred to as NAV or Net Asset Value.

2) Bonds: Unlike shares, a bond is a very different form of securities. They are often referred to as debt securities. In these types of securities, the investor purchasing a bond of a company basically gives a debt to the issuer of the bond. The issuer must repay this debt along with a fixed rate of interest that is known as the coupon rate at a particular date. This date is known as the maturity date or the bond maturity. Usually, bonds are available with a minimum one-year tenure. There are two types of bonds, namely corporate bonds and the government bonds.

1) Corporate Bonds: When business firms and corporations issue bonds and take debts for financing their business ventures they are called corporate bonds.

2) Government Bonds: As the name suggests, government bonds refers to the bonds issued by the central or the state governments of a country. Here the government owes the debt to the investors and use the capital for welfare and infrastructure developments.

3) Treasury Bills: Treasury bills refer to debt security instruments that are issued for only a few days. Treasury bills are available for 28 days, 91 days and 182 days. They are also referred to as zero coupon bonds.

4) Commercial Paper: Commercial paper is a security that belongs to the money market category. Large banks and corporations issue the commercial papers with the main aim of managing working capital. The types of commercial papers include promissory notes, certificates of deposit, drafts and checks.

Tips for Ideal Securities Investments:

There are a large number of investment instruments and companies in the market. In fact dealing in securities investments independently has now become extremely challenging and requires professional assistance. It is vital that investors follow certain basic tips regarding selection of right investment instruments and companies. Some of the significant tips are as follows:

1) The most important factor that an investor must consider is the risk involved in investing in a particular investment instrument. The investor must ensure whether he can sustain the risk and more importantly any loss a result of market fluctuations or any unexpected happenings.

2) Often investors are ready to take up risks for gaining greater returns. Therefore, before the investors invest in a company they must verify the credentials of the company and its growth prospects. If the company aims at having the precise management strategies, quality working and processes and efficient administration, only then the investor must consider investing in that company.

3) Investors must refrain from investing in companies that promise very high returns in exceedingly short span of time. Especially, when companies promise double returns then investors must refrain from such companies.

4) The investors must have a basic knowledge of the capital market before they start dealing with investment instruments. Almost everyday, there are significant market fluctuations that affect the share and other security prices. Hence, it is important for the investor to grasp these fluctuations and make right predictions before they make specific investments.

5) It is often advised that investors must invest in long-term securities rather than in the short-term ones. Long-term securities largely remain unaffected by temporary market fluctuations.

6) It is extremely crucial that the investors take the help of experienced and professional financial experts and organizations. The experts are professional business analysts who have the capacity to read the market happenings and market situations properly. Hence, the investors are assured of getting proper investment guidance and higher returns on their investments.

7) Though, people often consider investing in government securities as not a very profitable option but these investments assure security and assurance that no other company can provide on its shares. Especially, the government bonds are considered as the safest form of bond- investment with the returns assured by all means.

The evolution of investment securities ensured that the common investors had a greater role in the overall economic sphere. These securities ensured that the investors widen their capital base along with providing growth opportunities to the companies.