One of the activities of any bank is investment. The investment activity of the bank is formulated in a specific document, which is stored in a credit institution. Of course, only the bank determines the strategy for its investment activities. All the main provisions relating to the investment process are fixed in the so-called Memorandum of an investment bank.
The Memorandum under consideration contains such provisions as: priority tasks of the bank in investing, forming a portfolio of bank securities , the ratio of shares of various securities in the investment portfolio. In addition, it should be noted that in the Memorandum it is mandatory to indicate the strategy of such a process as the formation of a portfolio of securities, their type and number, as well as the procedure for their implementation. Additionally, it should be noted that in the above-mentioned document of the credit organization, it is necessary to indicate the list of persons who have legal authority to decide on the acquisition of securities and on changing the process of forming a portfolio of securities. Meanwhile, the heads of credit institutions, approve the basic provisions and instructions that apply to the bank and relate to a certain circle of people. All provisions in force in a bank should be aimed at improving the investment policy of a credit institution.
Deposits of a credit institution in securities are divided into three large types, depending on the purpose of their purchase. These are contributions to the subject of civil law, bought for sale in the subsequent version, that is, this is the formation of a portfolio of securities six months old. The next type is deposits in the object in question, securities were purchased specifically for investment purposes and are stored in the bank's portfolio for more than six months. Further, similar actions in the securities under consideration, upon the acquisition of which the bank has an obligation to resell the securities after some time. It is short about such process as formation of a portfolio of securities.
The circulation of securities is enshrined in law. This concept speaks of the conclusion of agreements of civil law nature, which determine the transfer of ownership to the subject of legal relations. Thus, the theory of jurisprudence gives all transactions with securities the term circulation, but only after the end of the issue. Nevertheless, defining the actions for the placement of the issue-grade securities under consideration as a stage of the issue, the legislator again indicates that this is the alienation of issue - grade securities through the execution of civil law transactions. If we talk about some combination of the two concepts, then this is rather due to the imperfection of the rules of law governing these legal relations. Nevertheless, under the circulation of the type of securities under consideration, one should understand the execution of agreements of a civil law nature that entail the transfer of ownership of the owner to this object after the issue.
The peculiarities of securities are that they are liquid, that is, there is the possibility of a very real property to sell them at any time. Papers are documents that reflect property relations and determine capital. The object in question can be not only in the form of a document, but also be made out in the form of records. Upon presentation of the paper, it is necessary to present the details and the security itself must be in the form specified by law. The characteristic features of the securities in question are that they can be objects of the state level, municipal level, securities of the constituent entities and corporate. Securities may be circulated in economic circulation and may not be circulated in the market.