types of corporate securities

types of corporate securities

Corporate securities - are securities issued by joint stock companies act, companies and organizations of other legal forms of ownership, as well as banks, investment companies and funds. Corporate debt securities are represented by different types of them: debt, equity and derivative securities.
Debt securities, credit relations mediate when cash available for use for a specified period, shall be returned with the payment of pre-established interest on borrowings. In accordance with this form of fundraising, built on respect of a loan used such types of corporate securities, like bonds and bills, certificates of deposit and savings banks.
Acquiring various types of corporate securities, the owner becomes an equity owner, co-owner of the company. Such securities certify the rights of shareholders to share in the ownership of a particular company.
In addition to the traditional investment portfolio consisting of stocks and bonds, derivatives are securities: stock options, warrants, futures contracts. Derivative securities and serve the government securities market.
Corporate debt securities issued by:
establishment of the Company and outstanding shares of the founders;
increasing the size of the authorized capital;
• raising debt capital by issuing bonds.
A functioning stock market is composed of two
major markets: the market for corporate securities, mainly represented by shares of enterprises and banks, and the market for government securities. These markets must be balanced.

Outstanding shares to a significant extent mediated speculation when the funds from the sale are not invested in production, but remain in the field of financial handling or consumption.
Currently, the market for corporate securities is uncertain, rapid market swings, low liquidity.

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