different kinds of securities
Investment banking operations are primarily related to the operations with securities. Under the securities mean specially decorated financial documents, the submission of which is necessary for realization expressed in them the rights. Peculiarities and regularities of the processes of primary and secondary circulation of securities shall be determined depending on their type. However, the investment can be attributed operation not with all types of securities, but not all of the possible operations with them.
Stock different kinds of securities, as a rule, differ massive issue. They are produced in a certain (very significant) volumes, each of which is identical to the other and is a certain share in the stock or bond Fund.
Taking into account the differences in the order of registration of the transfer of different kinds of securities are allocated to current securities, transfer of the rights on which is carried out without registration of the appropriate documents, a simple presentation, or an act of the consecration which are complemented by endorsed. To negotiable securities include U.S. Treasury and commercial promissory notes, shares and bearer bonds, cheques, certificates of Deposit, etc.
Proceeding from the peculiarities of treatment of certain financial instruments on the securities market are allocated to market and non-market securities. The first is sold and bought freely in the framework of exchange or over-the-counter turnover and may not be brought against the Issuer before maturity. The latter, on the contrary, does not have secondary treatment (i.e. walking on the stock exchange and outside of it), but may be returned by the Issuer before maturity, for example a number of public non-market liabilities, the shares of labour collectives.
On the basis of differences in the rights of the owner of securities in respect of operations with them (as well as the order of confirmation of these rights) different kinds of securities:
securities to bearer, the implementation and confirmation of rights of the owner of which is sufficiently simple presentation of a security. To this type of securities include: bearer cheques, shares, bonds; bearer Deposit certificates; the simple warehouse certificate, the bill of lading to bearer, etc.;
order of securities, the rights of the holders of which are confirmed as the claimant of these securities, and the availability of appropriate transfer of the inscriptions;
inscribed securities, the confirmation of the right of holders of which is carried out on the basis of the name of the holder entered in the text of paper, and write in the book of registration of this type of securities.
Depending on the content of the text of the security, the presence or absence of guidance on the economic transaction and its basic conditions allocate the causal and abstract securities. In the causal (holdings documents, bill of lading, and certain types of shares, etc.) specify either the main terms of issue of these securities, or the nature, timing, conditions of the transaction, the underlying. The text of the abstract of the securities (for example, a bill) has an absolute character. The main bulk of the securities shall be executed as causal.
Among state different kinds of securities are the most common:
Treasury bills, representing short-term liabilities of the Central bodies of power;
Treasury bill is a special kind of short - and medium-term
Treasury bills for a term from 1 year to 5 years with fixed interest:
Treasury notes (medium-and long-term);
the obligations of local authorities;
bonded loans of the various bodies of state authority;
non-interest-bearing (commodity) bonded loans.
