kinds of securities

kinds of securities

A security is a document of a settled form and requisites, which reflects the related property rights, may self-refer to the market and be the object of purchase and sale and other transactions, serves as a source of regular or one-off income, is form of money capital.
In the past kinds of securities exist only in a physically tangible, paper and printed printed on special paper with a sufficiently high degree of protection from possible fakes. In recent times, many of them have been issued in the form of entries in the books of account, and also on the accounts of the negotiations on magnetic and other information media, i.e. moved in non-cash form, physically intangible (paperless form). Objects of transactions in the securities market is also called the securities market instruments, funds (in the sense of «funds») or stock values.
There are various kinds of securities:
I. By issuers. The securities are issued by different actors. In the General view there are three main groups of their issuers: state, private sector, foreign entities. Accordingly, all securities can be conditionally classified as public, private or international.
II. On the basis of their economic nature may be allocated:
1) the securitiesexpressing the relationship condominiums (equity securities), which include stocks, warrants, bills of lading, etc. ;
2) securities, mediating credit relations are various forms of debt, bonds, Bank certificates, bills, etc.;
3) the derivatives of the Fund assets; to these include:
- convertible bonds (for example, bonds, which after a certain time may be exchanged for shares);
- convertible preferred shares (preference shares, which in a certain period of time exchanged for ordinary shares);
- special securities of banks;
- some other instruments (options, futures contracts).
III. kinds of securities For the period of existence of:
1) time are securities with fixed at their issue date of existence. Are usually divided into three subspecies:
- short-term, have a term of up to 1 year;
- the medium - term of circulation of more than 1 year within the limits of 5-10 years;
- long-term, have a term to maturity of 20 to 30 years;
2) perpetual - the securities circulation term which is not regulated, i.e. they are «forever» or till the moment of repayment, the date of which is not quoted on the issue of security.
IV. kinds of securities By origin:
1) the primary securities are based on assets, in which number does not include securities. This is, for example, shares, bonds, bills, etc.;
2) secondary - these are the securities issued on the basis of the primary securities; it warrants on securities, Depositary receipts, etc.;
V. according To the type of use:
(1) investment (capital) are securities that are subject to capital investments (stocks, bonds, futures contracts, etc.);
2) non-investment securities, which are served by cash payments on the commodity market or other markets (promissory notes, checks, bills of lading).
VI. On the basis of the order of ownership. Ïðåäúÿâèòåëüñêàÿ valuable paper does not record the name of its owner, and its treatment is performed by a simple transfer from one person to another. A registered security contains the name of the owner and, in addition, be registered in a special register. If a registered security shall be transferred to another person by making it the transfer of an endorsement), then it is called to order.
VII. kinds of securities In the form of the issue are distinguished:
- emission, which are issued usually large series, and within each series, all securities are identical - it is usually a - shares and bonds;
- equity - produced one-by-one or small series.
VIII. The main types of securities are the market, i.e., may be freely sold and bought on the market. However, in some cases circulation of securities may be limited, and security cannot be sold to anyone, except the one who released her, and then after a specified period of time. Such securities are non-market.
IX. From the point of view of profitability of securities, as a rule, are profitable, but can be and áåçäîõîäíûìè, when the issue of security is not specified the size of the income to the owner.
X. On the level of risk types of securities are as follows based on the principle: the higher the yield, the higher the risk, and the higher the guarantee of security, the lower the risk.

The main kinds of securities from the point of view of their economic substance-are:
• SHARE - the single contribution to the the authorized capital stock of the company with all the ensuing rights.
• NOTE - a single tax liability on the return of the invested amount of money over a fixed period for the payment or without payment of a certain income.
• BANK CERTIFICATE - free traveling certificate of Deposit (savings) contribution to the Bank with the obligation of the last payment of the Deposit and interest thereon through the established term.
• BILL of exchange is a written monetary obligation of the debtor of the repayment of debt, the form and the treatment of which shall be regulated by a special law - promissory notes right.
• 's CHEQUE is a written instruction Issuer to the Bank to pay the cheque to the recipient specified in it the amount of money.
• Bill of LADING - a document (contract) standard (international) forms on transportation of a cargo, proving its loading, transportation and the right to receiving.
• WARRANT - (a) a document issued by the warehouse and confirming the right of ownership to the goods, located in the warehouse; b) a document, which gives to its owner the pre-emptive right to purchase shares or debentures of a company within a certain period of time at a set price.
• OPTION - a contract, according to which one of the parties has the right but not the obligation, within a specified time to sell (buy) the other side of the asset at the price set at the conclusion of the contract, by paying for the right of a sum of money, called the the prize.
• FUTURES CONTRACT - the standard of exchange the contract of purchase-sale of an asset after a certain date in the future at a price set at the moment of conclusion of the transaction.

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