Commodity paper. The concept and types of commodity securities. Types of securities
Topic 6. Securities operations
Securityis a document certifying compliance with the established form and mandatory requisites Property rights, implementation or transfer of which are possible only upon its presentation.
With the transfer of security, all the rights in the aggregate are transferred.
Em session securities - Any securities, including non-documentary, which is characterized simultaneously by the following features:
· Consolidates the set of property and non-property rights subject to certificate, assignment and unconditional implementation in compliance with the established Federal law form and order;
· Is posted;
· It has an equal amount and timing of the rights within a single issue, regardless of the time of acquiring a security.
Others securitiesnot characterized by the listed features are called non-emission.
Securities are monetary documents certifying the property right in the form of title ownership (for example, shares) or property right as a loan attitude of the owner of the document to face, its released (bonds, bills). Consequently, these are documents reflected in the issuer's assets requirements.
In addition, securities act as documents testifying to investment. In this sense, they are asses that bring revenue, which makes them capital for the owners. But such capital does not function in the production process. Securities are a variety cash capital, whose movement mediates the distribution of material values.
The most important specific properties of securities include:
a) legal recognition;
b) turnover (ability to be an object of free sale on the market);
c) standardity (the presence of a legislatively established list of mandatory details);
liquidity (the ability to turn into cash);
risk (expected in the future income can not always be known).
Types of securities:
· State bond;
· Bond;
· Bill;
· Deposit and savings certificates;
· Banking savings book for bearer;
· Covenant;
· Privatization securities, etc.
In the form of release distinguish:
a) documentary securities whose owners are established on the basis of a certificate or account of the depot;
b) non-documentary securities whose owners are installed on the basis of a record in the system of maintaining the register of securities owners or in case of securities deposit, on the basis of an account on the depot account.
Rights certified by the security may belong:
1) security presenter ( valuable Bearer Paper ; To transfer to another person of rights certified by the bearer, enough to provide securities to this person);
2) the face called in the valuable paper ( personal securities ; rights certified by it are transmitted in the manner prescribed for concessions of the requirements (cession));
3) the person named in the valuable paper, which may be able to implement these rights or appoint another controlled person to his order (order). order Security ; Rights on order securities are transmitted by making a gear inscription on this paper - an endorsement. The endressment transfers all rights certified by the valuable paper on a person who or the order of which rights are transferred to the Industion.
The indorsement may be a blank (without an indication of a person who needs to be executed) or order (with an indication of a person who or the order of which should be performed).
Depending on the essence of expressed economic relations distinguish:
· Share;
· Debt;
· Hybrid;
· Derivatives;
· Commodity securities.
Equity securities Make sure the owner's right in the capital's capital. These securities include shares and shares of investment funds.
Stock -this is an emission valuable paper that enshrines its owner's rights (shareholder) to receive a part of the profit of the joint-stock company (AO) in the form of dividends, to participate in management and part of the property remaining after the liquidation of JSC.
Allocate simple I. preference shares. The owners of preferred shares have an advantage in obtaining dividends to the owners of ordinary shares, but usually do not have the right to vote.
There are several types of preferred shares:
1) Cumulative - any due, but not declared dividends accumulate and pay for these shares to the announcement of the payment of dividends on ordinary shares;
2) non-immigative - holders of these shares lose dividends for any period in which they were not announced about their payment;
3) preferred shares with a share of participation - give holders the right to receive additional dividends in excess of the amount announced if dividends on ordinary shares exceed the announced amount;
4) Convertible privileged shares - can be exchanged for a set number ordinary shares in pre-agreed proportions;
5) preferred shares with a corrected bid of dividends - payments for these shares are adjusted taking into account the dynamics of market interest rates;
6) Review privileged shares - contain the right to revoke, i.e. The issuer can redeem them at the agreed price.
Debt securities Make sure the right of a specific monetary requirement. These include bonds, bills, checks and certificates of debts.
Bond -this is an emission securities, fixing the rights of its holder to receive from the issuer to the term provided for in the bond nominal value or other property equivalent.
The income on the bond is the percentage and / or discount. The term of "maturation" of the bond is a period, after which the bond repayment occurs. Before the end of this term, the bond can be sold to other persons.
Bonds can be registered, bearer, freely addressed or with limited circulation.
There are state, municipal and corporate bonds.
In the form of paying the income bonds are:
a) coupon, with a fixed or floating coupon rate. They along with the return of the principal amount of debt provide periodic cash payments (1.2 or 4 times a year). The size of these payments is determined by the coupon rate, expressed as a percentage of the nominal;
b) with the payment of income at the time of repayment.
Hybrid securities – convertible shares and preferred shares with sharing law on ordinary shares.
Derived securities Certify the right of their owner to purchase or sell primary securities. These include options, futures, warrants, swaps.
Option (optional certificate) - Personal securities that enshrines the right of its owner on time and on the conditions specified in the certificate of optional certificate for the purchase or sale of securities (basic asset) of the issuer of the option or third parties at a fixed price.
Only shares and bonds (with the exception of government bonds and bonds of municipalities) can be basic assets of optional evidence.
Varant. - This is a security, the owner of which receives the right to buy securities at a prescribed price for a certain period of time or indefinitely.
TO commodity Securities relate:
· Covenant - a commodity-based document, certifying the right of its holder to dispose of the cargo specified in the Covenant and get the goods after the transportation is completed. It can be registered, presenter or order;
· Simple warehouse certificate - presenter securities, the holder of which acquires the right to dispose of the goods;
· Double warehouse certificate - consists of warehouse certificate and collateral certificate (or warrant) that can be separated from each other and contact themselves.
By terms of circulation, short-term (up to year), medium-term (from 1 to 5 years), long-term (from 5 to 30 years) and perpetual securities are distinguished.
According to the mechanism of formation and payout, the income is allocated:
1) fixed-income securities (bonds, bills, certificates);
2) with variable income (ordinary shares, floating coupon bonds, options, futures).
According to the degree of risk distinguish: risk-free, median and high-risk securities.
For the market function, securities are divided into:
but) money market tools - These are commercial and financial promissory bills, certificates of banks, state, municipal and corporate bonds and other securities with the term of appeal not exceeding the year. The economic role of these securities is to ensure the continuity of the capital circuit, the acceleration of the process of selling goods, the smoothness of the calculations;
b) tools market capital - Shares, bonds, certificates, mortgage, mortgage papers, whose appeal is more than a year. With the help of these securities, capital is attracted to the scope of material production.
TA Frolova
Banking: Lecture Abstract
Taganrog: TTI SFU, 2010.
A sign of the lender on personal paper; Renewal of lost paper (depreciation), paper transmission on the inscription. Damage valuable. Creditor rights for valuable paper; Lottery paper. Legal Nature of cash securities. Regulatory paper, broker note, invoice, invoice, cosition, certificate of commodity warehouse. Assigs on the Mint, Deposit Receipts of the State Bank.
Paper nominal. According to paper, the personal lender is primarily the one on whose name indicates the text of the paper. *(829) . From here: a) Named papers are not transmitted otherwise as a concession inscription *(830) ; b) wrestle the nominal paper does not mean to stop being a lender on it; Lost paper will be resumed, i.e. Depreciation and replaced by another, - another specimen, as its duplicate *(831) . But the paper is considered not lost, but transmitted, as soon on it there is a concession inscription, on whose name it was issued or transferred on the inscription, and therefore they are not subject to resumption of paper, at least lost, but with the concessional inscription *(832) .
The concession may be or registered, i.e. in the name of the new acquirer, or blank, i.e. As the inscription of the one who transmits paper and over his inscription ceases to be a creditor on it. The concessional inscription may be again in a twofold form; or transfers (with transfer), i.e. marker in the debtor books, or without transfer *(833) . But what would it be, a concession inscription is not that the endorsement of the bill of exchange: it does not have a guarantee function, its action is limited by one transmission function *(834) : Transmitting paper on a concession inscription only responsible for Veritas, but not for bonitas transmitted paper *(835) .
Paper (nominal and for bearer) loses the nature of the trading when it is spoiled. It can be corrupted: a) through damage to its physical integer; b) through the loss of its coupons for those periods (half) payment of interest, which have not yet come; c) also disconnected coupons for which the payment period has not yet come. Paper spoiled through physical damage can be exchanged for another *(836) ; Paper at which there are no coupons for future periods, as well as (early) coupons are not enough until those periods of interest payments to which the missing or separated coupons apply *(837) .
Paper lender rights are determined by the content of the obligation, which is set out in the text of the paper. The lender in the right to demand interest payments after each of those periods that are subject to paper (in its coupon sheet). Such a right (for each coupon, i.e. division of the coupon leaf separately) is subject to a decade ago: a coupon not paid by interest within 10 years from the day when the payment period has occurred, loses any meaning *(838) . The right to receive interest is terminated: a) when the paper went into circulation; b) When the government redeems paper or makes conversion. In both cases, the paper lender has the right to demand that monetary sumwhich is indicated as a nominal price of paper, with the only feature for conversion, that with the last lender in the right of its converted paper to submit a new, converting paper in exchange for paper. From these methods, the payment of interest is discontinued, it depends on the terms of the aspirations, i.e. from the conditions of release *(839) Paper, although these conditions can always be changed by the legislative authority: the state - the debtor is the most reliable, but also the most dangerous: it is outside the sphere of judicial coercion. When the percentage payment is terminated, the paper loses its trading nature; Only her sheet is suitable for which it is possible to obtain a paper amount in its none price. *(840) .
Some features are of lottery paper, - paper with winnings *(841) . They enter into themselves one more commitment - to pay the lender paper winnings, which lot will fall on the paper, according to the rules (winning) of the circulation. Because these papers have two separate editions: a circulation to stop percent and circulation for winnings; Both editions are independent one of the other *(842) . Winning paper is always on bearer: they are not capable of translating to nominal.
Cash papers - paper debt; they are not paper money, not monetary signs: on the contrary, they all say for money, usually in paper currency, but sometimes (and often) their subject - money is not in paper, but in metal (golden) currency *(843) As for payment of interest on coupons, and for paying a nominal amount on the sheet. They are therefore not a unit of measurement of values, nor the weapon of payments: they do not have a coercion, nor forced reception *(844) .
Commodity paper. They say to things - like Species or as a quantity; They replace and represent their subject - a thing or things. Relationships on paper are determined by themselves and relations on its subject, by the goods: the disposal of paper is at the same time an order of its subject; They are called regulatory paper. The outstanding commodity paper is obliged to issue (or pass) the goods in it, but 1) in exchange for paper, 2) Only to the one who will be its right holder, 3) under the condition that simultaneously with the issuance of goods, the last Buden is cleared of lying on it payments. To the number of such (managerial and commodity papers include:
a) broker note *(845) . It arises from the purchase agreement, reads on the purchased goods defined in its kind, quantity and quality. Note - Paper is always registered - it is marked by her lender - the bidder; But it can proceed by the transfer lettering of the bidder, with a turnover or without turnover, i.e. According to the rules and with the consequences of the billing indorsement *(846) . In the right to demand the goods all, whose name states the text of the broker notch, or to whom, i.e. On whose name, it indicates its transfer inscription. But usually, it opposes the obligation to clear the goods from the payment lying on it, and this is primarily the purchase price, all or in part *(847) . With a broker note, an order is similar - to issue a sold goods from the barn, shop, warehouse, etc. *(848) .
b) texture. This paper also arises from the purchase agreement *(849) . The texture can be paid or not yet paid by the bidder of the goods: but in the other case, it can be transferred from the bidder to another, just in the second case, it is not possible to get the goods on the texture, you can not be able to clear it from the payment lying on it, t. e. from (well or in part) not yet paid purchase prices *(850) .
c) invoice (duplicate railway *(851) . Paper arises from the transport contract (not by sea). It happens nimbar and for bearer, and therefore, the signs of the recipient of the cargo on the invoice are different, the paper transmission is also determined: or transmitting paper: or by gearing inscriptions or through the transfer of the paper itself. In case of loss or destruction of paper, there is a peculiar depreciation: after the application, the transporter, the latter makes publication in the newspapers and then, after a certain time, the cargo is issued and without paper *(852) : But with paper or without paper - the cargo is always issued against the cleaning from the payment, first of all - from transportable money.
d) Coversion *(853) . Paper arises from the Treaty of Transportation by Sea (from the Treaty of the Tseiver). Paper may be nominal (and by order), or on bearer; This difference corresponds to the difference in transmission methods: on the inscription or through the transfer of the paper itself. Paper gives a skipper (captain) of the ship; According to it, he is obliged to give the cargo to the one who is the right recipient, but is obliged to issue only against the cleaning of payments and above all - from freight *(854) .
e) paper arising from the Treaty "On the Advanced Protection Complex and in general for merchant custom" *(855) , and mostly - Foreign Certificate of Commodity Warehouse (Varant) *(856) . It can be double (folding and mortgage), it may be simple. In this and other form, the share certificate concludes the presentation of a bilateral agreement, which took place between the keeper (the warehouse container) and gave goods for storage. But it is at the same time a managing-product paper: a) only a certificate holder and in exchange for such can be issued by the product, but issued under the condition for cleaning the goods from the payments lying on it; b) the certificate holder has unconditional right to dispose of the goods *(857) . Thus, the disposal of the goods occurs through the order of the certificate: the goods are laid and sold through the mortgage and sale of evidence *(858) . The mortgage and sale of the certificate occurs through the transfer of the paper: it is always nomadic, and therefore is transmitted only by gear inscription, and the lender for it, therefore, the one who points to the text of the transfer inscription or the latter from the transfer on it on it *(859) . In the event of loss, the certificate (folding and mortgage) can be replaced by another, but only under the observance of well-known conditions. *(860) . Finally, the certificate of commodity warehouses is not only on goods-species, but also on goods-quantities, with a variety of products: these are evidence of impersonal goods *(861) .
Two more papers have a peculiar character: a) appointments on a mint *(862) . Assigns are: a) on a gold coin, b) on gold bars. The coin appreciation has the nature of the security, but not to the paper, but on the gold currency; Assigning on bars has the nature of the commodity papers. The debtor on both papers is a mint, although the appointments are not issued to them, but they give their mountain governance for it. Assigning - Packaging, but it can proceed from one person to another transmission inscription - nominal or form; Thanks to this, the appreciation can be sold and laid, like any other branding. In the case of the loss of allocating, it is necessary to distinguish: a) the appreciation was not transferred or transferred, but not for the blank inscription; Then she can be invalid; Gold declaring the loss will be issued (in a coin or in the ingot) and without approval, but in compliance with the well-known conditions: b) the approval is transferred according to the letter testing - in this case, the letter of loss is not accepted, the gold is issued to the provisional *(863) .
b) Deposit receipts of the State Bank *(864) . Deposit receipt is nothing more as the obligation of the State Bank, demanding and on the bearer, to pay the amount of gold coins marked in the receipt; percent receipt does not bring. Obviously, this is a cash paper, but with the only feature that it reads on a ringing (golden) coin. Paper arises from the contract, it is issued to pay for the purchase price of various kinds of values *(865) . As the paper on the bearer, the deposit receipt is subject to all the rules regarding the bearer papers: goes out of hand to hand, it is not subject to resumption in the event of loss, it is not necessary, finally and wine from the bona fide owner. It is mandatory for reception at a nucleational price from customs *(866) .
The trade securities also includes securities obtained in the execution of the following transactions, if the Bank has an intention to sell them within three months in order to produce profits:
- Securities sold under the transaction under repo agreements;
- Securities transferred to the loan;
- Acquisition (accounting) of bills.
Trading securities are securities that are purchased to obtain profit due to short-term price fluctuations and (or) trade margin, or securities that are part of the portfolio actually used by the Bank to obtain short-term profits.
Bank classifies quoted and non-legislative Russian Federation Securities to the category "Trading securities" under IFRS, if there are intentions to sell them within 6 months (180 calendar days) from the date of purchase.
The responsible worker of the Bank forms and documens the motivated judgment on trade securities in the form approved in the Bank for Transformation Bank Regulation financial statements. The data set out in a motivated judgment is transferred to the statement of adjustments. In the event that the securities portfolio is large enough to form a professional judgment, a developing table for trading securities is created.
Below is a documented professional judgment. As an example, a judgment on reversing securities reserves is given.
Approve
Deputy Chairman of the Board _____
"___" December 2005
The Bank classifies debt and equity securities listed under the legislation of the Russian Federation, in the category "Trading Securities" under IFRS, with the exception of debt securities, with respect to which there are intentions to hold up to maturity.
Such securities are subject to classification to a category or "Investment securities available for sale", or "investment securities held to repayment." A motivated judgment on this issue is formed by the responsible employee of the bank. The data set out in motivated judgment is transferred to the statement of adjustments and are included in the transformation table.
Accurate bills bank classifies in the category "Trading Securities" in IFRS, if the following conditions are satisfied:
- bill acquired for the purpose of resale for 6 months (180 calendar days) since the acquisition;
- information on the financial condition of the billboard (payer on the bill) is published in the media and (or) disclosed on Web sites;
- The bill is not overdue in accordance with bill legislation.
Motivated judgment on this issue is formed by a responsible employee who is entrusted with the authority to form judgment on bills. This information is included in the transformation table.
Trading securities are accounted for at fair value. Implemented and unrealized income and expenses on operations with trade securities are recorded in the income statement for the period in which they arose, as part of income less expenses for operations with trade securities. Interest earnings on trade securities are reflected in the income statement as interest income. Dividends obtained are reflected in other operating income in the income statement.
Purchase and sale of trade securities, the supply of which should be made within the time limits established by the legislation or the Convention for this market and the purchase and sale of which are regulated by "standard contracts", are recorded at the date of delivery. In all other cases, such operations are reflected as derivatives. financial instruments Until the first time on time, according to the terms of the exchange date of the currency - or the date of settlements, or the delivery date.
The comma world is divided into two groups: actually goods (services) and money. Money, in turn, can be just money and capital, that is, money that bring new money. There is always a need for the transfer of money from one person to another. The markets have developed two main ways to transfer money - through the lending process and by issuing and circulating securities.
Securities are not money and not material product. Their value is in the rights they give to their owner. The latter, exchange your goods or your money on securities only if he is sure that this paper is almost worse, but even better than the money or the goods themselves.
Securities - this is a special product that appeals to the special, its own market - the securities market, but does not have a real nor money consumer value, that is, is neither a physical product or a service. In an extended understanding, securities is any document (paper) which is sold and bought at the appropriate price.
Security paper is a document that expresses the associated property and non-property rights, can independently contact the market and be the object of purchase and sale and other transactions serves as a source of obtaining regular or one-time income. Thus, securities are a type of money capital, the movement of which will mediate the subsequent distribution of material values.
IN Civil Code The Russian Federation contains a classic definition of security. "Security paper is a document certifying the compliance with the established form and obligatory details of property rights, the implementation or transfer of which is possible only upon presentation."
Security must contain mandatory details provided by the legislation and comply with the requirements for its form, otherwise it is invalid. Security details can be divided into economic and technical. Technical details are numbers, addresses, printing, signatures, the name of serving organizations, etc. Economic details: existence form (paper or paperless), existence, belonging, obligated face, Nominal rights provided.
Signs of security are:
1. Documentality - Securities There is a document, that is, an officially compiled by an authorized person in accordance with the details of a record that has a legal value.
2. Protects private rights. Securities - this cash documentwhich can express two types of law: in the form of the title of the owner and as a relationship of the loan of a person who owns the document to his face to release him.
3. The need for a presentation - the presentation of the security is mandatory for the implementation of the rights enshrined in it.
4. Pulpability - Securities may be an object of civil transactions.
5. Public accuracy - in relation to the owner of a security obligated person, only such objections that arise from the content of the document itself can be put forward.
6. Security is a documentary evidence of investing funds. Thanks to her, cash savings are becoming material objects.
Classification of securities
The classification of securities is their division on species on certain features that they are inherent. In turn, species can in some cases share on subspecies, and they are even further. Each subordination classification is part of a particular classification. For example, a share is one of the types of securities. But the action may be ordinary and privileged. An ordinary share can be one-haired and multifaceted, with a par or without a nominal value, etc.
Securities can be classified according to the following features:
1. For the term of existence: urgent (short-term, medium-term, long-term and revitalized) and indefinite.
2. On the form of existence: paper (documentary) or paperless (uncertified).
3. In the form of ownership: presenters (securities per bearer) and nominal, which contain the name of their owner and are registered in the register of owners of this securities.
4. In the form of handling (transmission procedure): transmitted by agreement of the parties (by means of awarding, by concession) or orders (transmitted by the order of the owner - an endorsement).
5. In the form of release: Em session or non-emission.
6. By registerability: registered (state registration or registration of the Central Bank of the Russian Federation) and unregistered.
7. According to nationality: Russian or foreign.
8. According to the issuer: government securities (these are usually various types of bonds manufactured by the state), non-state or corporate (these are securities that are issued in contact with companies, banks, organizations and even individuals).
9. According to treatment: Market (free-forming), non-market, which are produced by the Issuer and can be returned only to it (cannot be resold).
10. For use goals: Investment (goal - revenue) or non-investment (maintain turnover in commodity markets).
11. Risk levels: risk-free or risky (low-risk, median or high-risk).
12. According to the availability of accrued income: indestructible or profitable (percentage, dividend, discount).
13. At par: constant or variable.
14. In the form of capital attracting: equity (reflect the share in the authorized capital of the Company) and debt, which are the form of loan of capital (cash).
Types of securities
Securities are divided into 2 classes: the main securities and derivatives securities (derivatives).
The main securities are paper, which is based on property rights to any asset, usually for goods, money, capital, property, various kinds of resources, etc. To such papers include: Promotion, bond, bill, bank certificates, billboards , check, warrant, mortgage, pairs of mutual investment funds and others.
The main securities can be divided into primary and secondary.
1. Primary based on assets, which are not included with the securities themselves (secured assets). This, for example, the action, bond, bill, mortgage.
2. Secondary - these are paper on the securities themselves: warrants, depository receipts, etc.
Stock - This is a security published joint Stock Company and the enshrines of its owner (shareholder) to receive a part of the profits of the joint-stock company (AO) in the form of dividends, to participate in the management of the joint-stock company and on part of the property remaining after its liquidation. As a rule, shares are divided into two groups: ordinary shares and preferred shares.
Bond - this is a valuable paper that is a debt obligation to return the nested summary through set time With payment or without paying some income. If the bond produces a state, then such a bond is called state. If organ local governments - then municipal. Legal entities also produce bonds: banks - bank bonds, other companies - corporate.
Bill (from him. wechsel - exchange) - Securities in the form of a long-term obligation, compiled in writing on a certain form, certifying no reason for the obligation of the bill stage (a simple bill), or a proposal to a different payer (transferable bill) to pay on the occurrence of The long-term exchange rate.
Bank certificate - Securities, which is a freely appeal certificate of a monetary deposit (deposit - for legal entities, savings - for individuals) In the Bank with the obligation of the latter on the return of this contribution and interest on it after the deadline in the future.
Bank Savings Book of Bearer In essence, there is a type of bank certificate (along with deposit and savings certificates).
Bill of lading - Securities, which is a document of the standard form adopted in international Practicewhich contains the terms of the cargo shipping contract, certifying its loading, transportation and right to receive. Types of bills: linear, charter, coastal and on-board.
Receipt - Security Paper, certifying a written order of a check of the bank to pay the check holder of the amount of money specified in it during its term of operation. The check is entityhaving cash In the bank, which he is entitled to dispose by issuing checks, and a checker holder is a legal entity in favor of which a check is issued. Checks are following species: Named, Orders and Bearers.
Varant - a) a document issued by the warehouse and confirming the ownership of the goods in the warehouse; b) This is a security that gives it the right to buy a certain amount of its shares (bonds) at this issuer for the price established by them during the time period defined by it.
Mortgage - This is a personal valuable paper certifying its owner's right in accordance with the mortgage agreement (property pledge), to receive monetary obligation or the property specified in it.
Investment Pai. - Personal security certifying the share of its owner in the right of ownership of the property, which makes a share investment fund.
Depositary receipt - this is a valuable paper indicative of ownership of a certain number of shares of a foreign issuer, but the investor issued in the country; This is the form of indirect purchase of shares of a foreign issuer.
The derivative of the security or derivative is a non-documentary form of an expression of property rights (obligations) arising in connection with the change in the price of the underlying paper of the exchange asset. Derived securities include: futures contracts (commodity, currency, interest, index, etc.), freely appeal options and swaps.
Futures contracts (Commodity, currency, interest, index, etc. - obligations to buy or sell goods at a certain time in the future at a price set today). Conclusion futures contract Is not a direct act of purchase - sales, i.e. The seller does not give up his goods to the buyer, and the buyer does not give the seller his money. The seller assumes the obligation to deliver the goods on the price recorded in the contract to a certain date, and the buyer makes an obligation to pay the appropriate amount of money. To ensure the fulfillment of obligations, a deposit is made, saved by an intermediary, i.e. An organization conducting futures trading. Futures becomes valuable and can overbug throughout the term.
Option - This is a security paper that is a contract, the buyer of which acquires the right to buy or sell an asset at a fixed price during a certain period or abandon the transaction, and the seller undertakes at the request of the counterparty for the monetary premium to ensure the implementation of this right. The option gives the right to choose (Option), it gave the name of this valuable paper. The option, in contrast to futures, gives the acquirer of the right, not a duty. Options are executed if at the time of execution they are options with winnings.
Svapi There are an agreement between the two parties to carry out the exchange of basic assets or payments on these assets in accordance with the terms specifications defined in the contract. Swaps are currency, interest, stock (index) and commodity.
Swaps have a number of significant advantages for investors, the main thing of which is the possibility of investors to reduce currency and interest risks, to make a profit on the difference between interest rates in different currencies, reduce the costs of managing the securities portfolio.
All types of swaps are outdoor contracts, they do not turn on the stock exchange and their liquidity provide special intermediaries - banks (which are often called silver banks) and dealers. The feature of these types of derivative securities is that their appeal is not regulated by the state, the main place in the swap market is occupied by banks participating in these transactions.
Properties of securities
Security is a form of capital existence other than its product, productive and monetary formswhich can be passed instead of himself, contact the market as a product and generate income. Properties of securities:
1. Appeal - the ability to buy and sold on the market, as well as in many cases act as an independent payment instrument.
2. Availability for civil turnover - security ability to be the object of other civil transactions.
3. Standard and seriality.
4. Documentality - Securities is always a document, and as a document, it should contain compulsory details provided by law.
5. Adjustability and recognition by the state.
6. Market is inextricably linked to the relevant market, it is reflected.
7. Liquidity - security ability to be quickly sold and transformed into money.
8. Risk - loss opportunities associated with investment in securities and inevitably inherent in them.
9. Competence of execution.
10. The yield - characterizes the degree of realization of the right to receive income by the owner of the security.
Functions of securities
Securities perform a number of socially significant functions:
1. They carry a pronounced information function, indicate a state of the economy. Stable securities courses or their increase, as a rule, testify to the normal economic situation.
2. Play an important role in the flow of capital between different areas of the economy (redistribution function).
3. Used to mobilize temporarily free cash savings of citizens (mobilizing function).
4. Used to regulate the cash circulation (regulating function).
5. Banks, enterprises and organizations use securities as a universal credit-calculation tool (calculated function).
Emissions of securities
Emission is a set of procedures for the placement of securities between investors. Its purpose is to attract the issuer of additional financial resources on borrowed conditions (in the case of bonds) or by increasing the authorized capital (in the case of the issue of shares), but this is done according to the rules and under the control of the state in the person of its bodies regulating the securities market.
Emissions are usually carried out by attracting professional participants The stock market, which are called underwriters, which under the agreement with the issuer take on certain obligations to issue and place its securities for the relevant remuneration.
From the point of view, the issue of emission is customary to divide on primary and secondary. Primary emission takes place either when commercial organization For the first time produces its securities, or when the issue of some kind of security is this organization for the first time.
Subsequent emission is the re-placement of certain securities of this commercial organization. By the method of placement, the issue can be carried out by distribution, subscription and conversion.
Conversion of securities
Conversion is the placement of one type of securities by exchanging it to another on pre-established conditions. Participation in conversion can take only persons who have prior to its implementation rights to already posted securities. Conversion can be divided into the following types:
a) conversion of shares in shares with a greater nominal value,
b) conversion of shares in stock with a smaller nominal value,
c) conversion of shares in shares with other rights,
d) conversion of bonds in stocks
e) bond conversion in bonds,
(e) Conversion of securities in the reorganization of commercial organizations.
It is prohibited to convene ordinary shares into preferred shares of any types. In addition, the legislation of the Russian Federation on securities does not provide for the possibility of converting shares in bonds, which actually also means banning such conversion.
STOCKS AND BODS MARKET
The securities market is a system of economic relations between those who produce and sell securities, and those who buy them. The securities market participants are issuers, investors and investment institutions. Enterprises that produce and sell securities are called issuers.
Stock market - This is an institution or a mechanism that minimizes buyers (demand bearers) and sellers (suppliers) of stock values, i.e. valuable papers. The concepts of the stock market and the securities market coincide.
According to the definition, the goods addressed in this market are the securities that, in turn, determine the composition of the participants in this market, its location, order of functioning, regulatory rules, and the like.
IN market economy The securities market is the main mechanism for the redistribution of cash savings. The stock market creates a market mechanism of free, albeit regulated, overflow of capital into the most effective industries.
It represents the right to own a share in the joint-stock company (action), the obligation to creditors (bond) or the right to receive property (optional).
Classification
Monetary securities can be divided into two categories - stocks and bonds.
- Promotion is the share of the ownership of the shareholder in the company, society or trust. Shares are simple and privileged. As a rule, they do not give the right to regular income (except when the company pays dividends), but they can profit from capital gain at the time of sale. Shares give the owner of control over the company (in proportion to share) by participation in the voting. In the event of a bankruptcy of the issuer, shareholders share only that capital that will remain after payment of all obligations.
- Bond, or debt obligation, is a submission of a certain amount of money that was borrowed and must be returned. The bonds indicate the loan amount, interest rate and repayment date. Debt liabilities are divided into public and corporate bonds, deposit certificates and secured bonds. They give them the owner the right to receive regular payments in the form of interest and return loan amounts, regardless of financial indicators The issuer's work. Bonds are issued for a fixed period, at the end of which they can be represented by the Issuer for repayment.
Separately, hybrid securities possess the characteristics of both shares and bonds. These include:
- vARRANTAs per shares - an option made by the Company itself and giving the shareholder the right to buy shares at the prescribed price during the agreed period;
- convertible bonds - bonds that can be converted into the issuer's shares;
- preferred shares are shares by which the company makes interest paying, dividends or other income in priority.
Preferred shares, although they are formally shares, still possess the characteristics debt obligationsSince they provide for the payment of dividends at a fixed rate, and therefore are actually a fixed income paper.
Cash Securities Market
Public money securities are traded at. This mechanism provides reliable quotes, liquidity and regulated market nature. Recently, the dissemination of unofficial electronic systems Trade, so securities can be purchased on OTC (OTC) sites or directly from other investors.
Securities owners can sell them on secondary market other investors. Paper purchased in the closed placement process is not subject to open trade and can be transmitted only within a limited group of investors.
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