Equities are financial assets which entitle investors to have a share in the net asset of a firm and also participate in the firm's profit in a form of dividends. In other words, the shares indicate part ownership of investors in a limited liability company. Government cannot issue equity security because it is not a limited liability company. Unlike debt securities holders of equity securities may qualify for voting rights which are tied to the number of shares they hold. There are various forms of equity securities but the common types of equity securities issued in Ghana are the ordinary share, preference share and exchange traded fund (ETF).

Preference shareholders receive dividends before common shareholders and also during periods of liquidation preference shareholders receive their benefits before ordinary shareholders. Preference shareholders cannot compel a firm to undergo liquidation due to the firm's inability to pay dividends and also not all preference shares have voting rights.

ETFs are securities traded on exchanges like shares but track the combined value of a portfolio or basket of underlying assets such as share, commodities and bonds. ETFs afford investors the opportunity to own creation units that entitle them to the commensurate value of the underlying assets in quantities that would not have been possible if they were to purchase the actual assets. In other words, ETFs are indexed linked securities which are interconnected to a market index, a commodity etc that tracks the yield and return of its benchmarked index. In August, 2012, the first ETF, NewGold ETF was issued by ABSA Capital in Ghana and listed on the Ghana Stock Exchange.

Repurchase agreements are financial transactions that involve the sales of a security with an inherent mutual agreement to repurchase the same security at a future date at an agreed price. Thus the name ‘repurchase agreement’ or repo, for short.

The reverse of the repo transaction is called ‘reverse repo’ which is purchase of securities with an agreement to resell the said securities on a mutually agreed future date at an agreed price.

Treasury Bonds are debt instruments (securities) issued by the Government of Ghana and sold to individuals or companies to raise funds for a specified time at a fixed or variable interest rate. 

They may range from medium term to long term securities of one year and above. The one year and two year securities are normally referred to as Notes while the three years and above are typically called bonds. Notes and bonds normally make fixed interest payments bi-annually (i.e every six months) to the holder.

Treasury Bills are short-term debt instruments (securities) issued by the Government of Ghana with a maturity of less than on year. They commonly have maturities of 91 days and 182 days. Treasury Bills are issued at discount from par, which means that rather than making fixed interest payments like conventional bonds, income is earned by the difference between the face value and the price of the security.

Bank of Ghana also periodically issues short –dated bills to support its monetary operations.

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