Which of the following are called gilt edged securities ?
- AOption (a)
Shares of Public Limited Companies
- BOption (b)
Government Securities
- COption (c)
Shares of Private Limited Companies
- DOption (d)
Stocks of Mutual Funds
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Correct answer
Government Securities
Why this answer is correct
The correct answer is Government Securities.
Key Points
- Gilt-edged Securities are high-grade bonds issued by certain National Governments.
- “Government security” means a security created and issued by the Government for the purpose of raising a public loan or for any other purpose.
- Gilt-edged securities are favoured by investors who seek predictable returns, with little risk of default.
- These investments carry similar traits as United States Treasury securities.
Important Points
- "Security" refers to a fungible, negotiable financial instrument that holds some type of monetary value.
- It represents an ownership position in a publicly-traded corporation via stock.
- The four types of security are debt, equity, derivative, and hybrid securities.