Question

which of the following is not a security? (a) shares (b) government securities (c) derivative products (D) fixed deposit receipts

Answer 1

a) shares....... ....

Answer 2

Derivative products are not a security.

• Security refers to any financial asset that can be traded between two parties in an open market.
• Company shares, government securities, and fixed deposit receipts are assets that can be given as security.
• Derivative products are trading instruments. Their values are dependent on the values of the underlying financial assets. They cannot act as security in the market.