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Government securities Government Securities are securities issued by the Government for raising a public loan or as notified in the

official Gazette. They consist of Government Promissory Notes, Bearer Bonds, Stocks or Bonds held in Bond Ledger Account. They may be in the form of Treasury Bills or Dated Government Securities. Government Securities are mostly interest bearing dated securities issued by RBI on behalf of the Government of India. GOI uses these funds to meet its expenditure commitments. These securities are generally fixed maturity and fixed coupon securities carrying semi-annual coupon. Since the date of maturity is specified in the securities, these are known as dated Government Securities, e.g. 8.24% GOI 2018 is a Central Government Security maturing in 2018, which carries a coupon of 8.24% payable half yearly. A Savings Bond is one of the many investment tools individuals have the option to invest their money into in exchanged for anexpected return on their investment. Purchased for a number of reasons such as gifts for newborns or graduates, or typically as lower risk investment options, these Savings Bonds generally yield a much lower return, but are also much more secure than those investments offering higher ones. Savings Bond Savings Bond Meaning: In deposit terminology, the term Savings Bond refers to a non transferable, nonnegotiable government issued Treasury bond. U.S. Savings Bonds are offered in denominations ranging from $50 to $10,000. Savings Bond Example: For example, a Savings Bond will often be sold at a discount to its face value, with the respective interest rate pegged to U.S. Treasury securities. Income from a Savings Bond will often be exempt from state and local income taxes and will have Federal taxes deferred until the bond is redeemed. Savings Bonds generally come in different denominations and maturities, with the Series EE bond being the most popular bond for individual investors that has a maturity of thirty years. Another type of Savings Bond includes the Series I bond, which is sold at full face value and offers a variable interest rate that is directly correlated with the current inflation rate. Savings Bond

The tax benefits associated with savings bonds are significant. a spouse or a dependent in the same year. and backed by its full faith and credit. And unlike common shareholders. preference share shareholders usually do not have voting rights. which give the holder dividends plus . all federal taxes may be deferred until the bond is redeemed. preferred stock shareholders have a right to be paid company assets first. for which dividends must be paid including skipped dividends. but in the specific case of savings bonds. non-callable. In the event of a company bankruptcy. non-transferable bond issued by the U. Preference shares typically pay a fixed dividend.000. Additionally. participating preferred. Therefore.S. Face values range from $50 to $10. they are exempt from state and local taxes. Savings bonds are nonmarketable.Definition A registered. no taxes will be due until that money can be accessed. even though interest will accrue. there is no secondary market for savings bonds. if the money received at redemption is used to pay tuition expenses for the holder. meaning that they cannot be bought and sold after they are purchased from the government. whereas common stocks do not. therefore. Savings bonds differ from other Treasury securities in several ways. for which skipped dividends are not included. Investopedia explains Preference Shares There are four types of preference shares: Cumulative preferred. Also referred to as preferred stock. also called U. Savings bond.S. Preference Shares What Does Preference Shares Mean? Company stock with dividends that are paid to shareholders before common stock dividends are paid out. non-cumulative preferred. the interest earned may be exempt from federal taxes as well. Government. Like all treasury securities.

which can be exchanged for a specified number of shares of common stock. preference shares pay a fixed dividend that does not fluctuate. preference shares represent partial ownership in a company. and which takes precedence over common stock in the event of a liquidation. Like common stock. there are four different types of preferred stock: cumulative preferred stock. although preferred stock shareholders do not enjoy any of the voting rights of common stockholders. The main benefit to owning preference shares are that the investor has a greater claim on the company's assets than common stockholders. although the company does not have to pay this dividend if it lacks the financial ability to do so. preferred shareholders are paid off before common stockholders. in the event the company goes bankrupt. often with no voting rights. preference shares Definition shares.extra earnings based on certain conditions. Also unlike common stock. and convertible. and convertible preferred stock. Preferred shareholders always receive their dividends first and. participating preferred stock. In general. non-cumulative preferred stock. also called preferred stock. which receive theirdividend before all other shares and are repaid first at face value if the company goes into liquidation preference shares Definition Capital stock which provides a specific dividend that is paid before any dividends are paid to common stock holders. .