What are government securities? What are securities?

Dear Student, A security is a financial instrument. Securities basically represent borrowed funds and owners funds. Bonds, commercial papers, certificate of deposits ,debentures, preference share capital, equity share capital, retained earning  are a few examples of securities.The company or entity that issues the security is known as the issuer. Government securities are the securities, such as, bonds and treasury bills that are issued by the government to raise funds. When the government sells these securities, then it leads to reduction in cash balances of the people. This is because when people buy securities, it leads to the movement of cash from public to the government.  Regards!