government issued securities
The largest national market securities, including government debt, owned by the U.S., which depends not only on the scale of the U.S. economy, but also a tradition of high value transactions in securities in this country.
government issued securities most common - treasury bills (treasury bills) - discount securities. In the United States, and there are federal agencies that issue securities, which are not direct obligations of the Treasury, but guaranteed by the government and under its supervision and regulation. government issued securities Municipal bonds include securities issued by states, cities, counties, school districts and controls toll roads. Most governments sell bonds to finance their projects. Significant market place is the so-called Yankee bonds (yankee bonds). In fact, they are bonds issued by foreign companies or governments in the U.S.. government issued securities Treasury bonds are divided into two groups: non-market and market. Treasury securities market, in turn, are divided into three types: - Treasury bills - Treasury notes - Treasury bonds. Treasury bills are debt obligations of the U.S. government, the maturity of one year or less (3 months. 6 months.). These bills are discounted securities, the investor's income is the difference between the purchase price of the notes and its par value. The profit received by a holder of the promissory note (from the sale, redemption), is subject to federal tax, just like any other income. This is currently the most popular money market instruments, a number of reasons: - the absence of the risk of bankruptcy of the issuer - high liquidity due to the presence of effective secondary market - the lack of income tax on the part of state and local governments; - available for both large and small investors, since the minimum denomination of bills is 10 thousand dollars times - five thousand dollars. government issued securities, issued for a period of 3 and 6 months, are held weekly, and notes with a maturity of one year - monthly. For the purpose of the temporary cash requirements sometimes sells Treasury bills cash management for a period of 3 to 168 days. In this case, to participate in the auction must submit an application to the Finance Department of the Ministry of Finance or the bank, which is its agent. All government issued securities only in book-entry form, which a large volume of their output can significantly reduce costs. Book-entry system of release suggests that investors as proof of purchase receive a statement of account, and the ownership is recorded in a special register kept by the Treasury, and in the system of various depositories. Treasury notes - interest-bearing bonds of the U.S. government with an average maturity of not less than one year and not more than ten years. government issued securities are issued in minimum denominations of 5 thousand dollars, if the maturity period of less than 4 years, and with a face value of 1 thousand dollars, if the period of treatment over 4 years. Denomination some editions of 10 thousand U.S. dollars, 100 thousand U.S. dollars and one million. Interest rates are set for each issue separately. Since 1986, new issues of notes made in the form of book-entry accounts.
government issued securities are emitted with a minimum face value of one thousand dollars, and may be larger denominations that are multiples of $ 100. Maturity: for certificates - one year for music - from one to ten years for bonds - more than ten years. These debt securities are offered to state and local governments as a means to invest proceeds from its own financial transactions. b) on-call depository securities - debt certificates in the form of book-entry issued in minimum denominations of 1 thousand dollars. The interest rate depends on the federal funds rate. Interest is calculated and added to the principal amount of the daily. Also, this is considered as a security bond that is not subject to taxation. Term of circulation of these papers is one day. Every day he would be automatically extended for as long as the investor does not require repayment. It is now used rarely. c) bonds of the Office of Rural Electrification - issued in the form of debt certificates and bonds in book-entry form. Maturity: for certificates - one year for bonds - 12 years. These securities are issued with a nominal value of one thousand dollars, and the interest rate on them amounts to: Certified - 2% on bonds - 5%. These bonds are offered as investment vehicles cooperatives, which are created for the purpose of electrification or telephone a particular locality. Bonds are used to raise funds to the Office of Rural Electrification. d) issues, intended for other states - bills, debt certificates, notes, bonds, in the form of entries in the accounts. Terms and interest rates are different for each issue. For bonds of local authorities (municipal bonds) in the U.S. are bonds issued by states, territories, counties, cities. The total number of issuers of these bonds reaches 40,000. In general, these bonds have a good reputation. Interest paid on municipal bonds are exempt from federal income tax. In turn, bonds lower administrative units, as a rule, are not subject to taxes raised interstate. State bonds are a form of government bonds. From the point of view of ensuring they are classified as: - general obligation bond without a specific security, are not backed by any particular source of income (general notes) - bonds backed by specific revenue source, which are produced by a specific major project and the proceeds of which are used to pay interest and principal on debt (revenue bonds).
Transactions in securities may be made or on one of the stock exchanges or over the counter. The best-known exchanges are the New York Stock Exchange (NYSE), American Stock Exchange (AMEX) and the National Stock Exchange. It should be noted that trade in government securities in the United States is rapidly and continuously. The market for these securities is very stable, and fluctuations in its low, which indicates a high liquidity and security of government securities, which have a certain tax benefits (income on them generally not subject to state or local tax authorities). In addition, they can be used as collateral for a loan.
