Consider the issue of issuing securities, as well as their standards. Everyone has heard the concept of "emission"; this is the issue of an additional or new batch of papers or money. The issue of securities means the appearance on the market of a large number of bonds, as well as shares, as well as certificates issued by organizations and holdings, and, in addition, enterprises or the state and its bodies. This process is focused on the one-time mobilization of funds necessary for solving important tasks.
Sometimes financial institutions lack funds. There are two options - take a loan or issue securities. In the first case, you will have to pay interest, and in the second - to receive interest. If borrowed securities, such as bonds, are issued, then the valuation of securities is based on the amount of interest on them. When additional shares are ordered, an increase in the authorized capital of the organization.
The standards for issuing securities include certain rules and stages. Before the release, the so-called preparatory stage takes place. It employs economic analysts who must analyze supply and demand, market prices, the volume of new securities issued and the places where they are most profitable to place. Without this stage, the issue of securities will not bring the expected results. After all calculations, the issuer orders the printing of valuable forms in the required quantity.
Further, the issuer needs to place securities favorably. To do this, he subscribes to papers in advance or immediately after release, which can be closed and open. The issue of securities may lead to their conversion to other securities, at the price established in the agreement between the issuers. There is another option - the distribution of issued securities among a predetermined circle of people. This is possible if the issuer is transformed into a joint-stock company, or when shares are distributed among existing shareholders.
The issue of securities may be bearer and registered, uncertified or in documentary form. In any case, the purchase of securities is an investment that will bring interest income or dividends. Only an experienced market participant can choose the right paper on the stock exchange, otherwise a purchase can lead to a loss of money and, conversely, to an increase in wealth several times.
We should distinguish between securities, they all have their own characteristics. Consider the example of bonds and stocks.
Bonds give their holders the following right: to receive interest remuneration from the issuer, subject to all the rules and obligations. There are the following types: with one-time profit and income, divided into several parts. Bonds are issued for a specified period, for example, several months, after which they are returned to the issuer.
Stocks have a slightly different principle. By purchasing this security, its buyer receives the right to receive dividends during the tenure, as well as take part in the management and decision-making related to business development. The purchase of ordinary shares implies only income. Upon acquisition of preferred shares, their owner becomes a member of the board of the issuer's organization.
Understanding and knowing the features of the issue of securities, you can skillfully rotate in the market, making a sale on favorable terms. Many successful people started by buying a simple security, and won a fortune on this operation. There are special employees on the exchange who can make transactions in your place. In any case, you will find, not lose. What will outweigh is up to you.