A security is a financial document giving the right to receive income in the future to its owner. A document confirming property rights that arise only upon presentation of a security. Securities may be on paper or on a magnetic medium. The classification of securities is carried out according to various criteria. There are two major classes of securities: main and derivatives.
Derivative securities are futures contracts or contracts and options.
The main securities are divided into two groups: primary and secondary. Primary securities are based on assets (stocks, bonds, bills). Secondary securities are issued on the basis of primary and are securities on the securities themselves (warrants, deposit receipts).
There are various attributes of securities that underlie their classification. According to the term of existence distinguish between urgent and unlimited securities. The type of use distinguishes investment and non-investment securities. According to the form of issue, there are equity and non-issue ones, and according to the form of ownership, state and private securities are distinguished. In addition, they distinguish between risky and risk-free securities, profitable and non-profitable, equity and debt, domestic and foreign.
Any security legally confirms the material rights of the owner. Each holder of securities knows what the concept and classification of securities is. Forms are carefully protected from falsification, paper and ink have several degrees of protection.
The most common are government bonds, stocks, bills, checks, savings and deposit certificates, bills of lading. Shares are ordinary, registered, preferred and bearer. The classification of securities in the form of shares is divided into registered, with a share of participation and bearer with warrants and floating dividends. Shares can be placed and announced. All shares have a nominal price and market or exchange rate. A stock is an equity security, which gives the right to receive dividends and to a part of the property upon liquidation of the joint-stock company.
A bond is a debt security that governs the relationship between lender and borrower. Very often bonds are issued by the state, but enterprises and various organizations can issue them. The classification of securities - bonds, in turn, includes notes, treasury bills, treasury bills or certificates. But bonds are issued only for a certain period, with a mandatory return. Bonds may be extended, deferred, convertible, indexed, mortgage, with a redemption fund, with trust trusts , registered and coupon, freely traded and with a limited circulation, interest and interest-free. Bonds always generate income.
A bill is a debt obligation that is issued to the creditor and gives him the right to demand the amount of money indicated in the bill after time.
Checks are registered, warrant, bearer, cash, settlement, privatization. The payer on the check is always the bank that issued the check.
The classification of securities , such as bank certificates, is divided by type of depositor into depository, which is used only by legal entities and savings used by the population. All certificates are derivatives, issued for a period of one to three years. All forms of securities have certain requirements depending on their face value, term of circulation and type.