The Securities market
The securities market is a financial marketplace where investors purchase stocks, bonds, and other derivatives. There are two types the Primary and Secondary Market. The Primary Market is where new securities are purchased, and the Secondary is where securities that were already issued are transferred from one investor to another.
The selling of stock and shares is a way in which agencies raise capital for their operations. It can be for the long term or the short term.
Types of Securities
A security is a financial instrument that can be traded in the open market. Securities can be categorized as debt, equity, derivative, or hybrid.
Debt Securities
Debt securities represent money that is borrowed. There are terms attached to the borrowed funds which include the amount of the borrowed funds, interest rate, and maturity date. In other words, debt securities are debt instruments, such as bonds that companies, municipalities, states, and sovereign governments use to raise capital.
Equity Securities
Equity security is the ownership represented as shares within a company. A shareholder purchases equity stock that gives them ownership rights.
Derivative Securities
Derivative securities are financial instruments whose value is determined by variables such as currencies, interest rates, market indices, stocks, bonds, and goods. Derivatives are used to consider market conditions and mitigate risks. The main types of derivatives are futures, forwards, swaps, and options.
Hybrid Securities
Hybrid securities are a combination of equity and debt securities. They characteristically offer higher interest rates until a certain time in the future. An example is preferred stocks. Read more on the types of securities here.
The Securities Market in Guyana
The Guyana Securities Council (GSC) is the body responsible for the orderly growth and development of the securities market in Guyana. It is an autonomous agency established under the Securities Industries Act, Act no. 21 of 1998. Additionally, the body is mandated as the supervisory authority for the securities market under the Anti Money Laundering (AML) and Countering the Financing of Terrorism Act, Act no. 13 of 2009.
Firstly, one of the functions of the GSC is to register, authorize, and regulate securities companies, securities intermediaries, brokers, dealers, traders, underwriters, issuers, and investment advisers. You can find a list of Registered issuers under the Securities Market Section of the Banking/Financial Tab. Along with the list of registered issuers on the Guyana statsandfacts platform, you will find pertinent information on all of the sectors of the Guyana economy and social factors. The Guyana Stock Exchange is organized and supervised by the Guyana Association of Securities Company and Intermediaries Inc. Its membership is currently composed of four companies that trade and provide brokerage services to investors. Shares can be bought or sold through the Trust Company Guyana Ltd, Guyana Americas Merchant Bank Inc, Beharry Stock Brokers Ltd, and Hand-In-Hand Trust Corporation Inc.
