Question

Distinguish between security and non security form of investment

Answer 1

 A security is an instrument of promissory note or a method of borrowing or lending or a source of contributing to the funds needed by a corporate body or non-corporate body. Non-Security form of Investment or non-marketable securities whose ownership is not transferable. The examples can be: 1. National SavingsSchemes 2. National Savings Certificate 3. Provident funds 4. Corporate Fixed deposits 5. Life Insurance Policies 6. Unit Schemes of Unit Trust of India 

 A Non-Security Investment is a kind of non-marketable security, wherein the ownership cannot be transferred. Non-security investments include life insurance, artwork, gold, diamonds, bank guarantees etc.