You can invest capital in absolutely different fields of activity and objects. One of the most popular areas of profit is such an economic category as a security. There are many types of them, so it’s rather difficult to understand this issue. It is not possible to place a detailed description of each paper on just one page, therefore only brief descriptions are given in this material.
Definition
To begin with, a security is a kind of document that indicates the ownership of its owner. One important point is the mandatory and strict observance of the forms and details that are established by the current regulatory documents. A security may appear only as a result of emission. This process is a certain sequence of actions of the issuer (these are authorities, a legal entity that bear certain obligations to the owners of these documents to ensure the rights directly assigned to them) to place these documents.
The law of the Russian Federation regulates all relations arising as a result.
Security paper. Classification
It should be noted that in this issue there is its own classification. So, they allocate bonds (they can also be state ones), a bill of exchange, a check, certificates of deposit, as well as various stocks and other securities. Most of them work with banking institutions. It should be said that there are different classification features. For example, all securities, depending on who issued them, are divided into banking, government, and issued by legal entities. A security is often issued on a specialized standard form. It should contain the name, registration date, face value, full name and location of the issuer, payment term, as well as the type of profitability. As for the last paragraph, the owner can claim interest, discount. There are also interest-free securities.
Bonds
This is another component in this issue. They are a debt obligation that is issued either by the enterprise or by the state when they issue an internal loan. The bond entitles the holder to claim interest in the form of interest.
Bill of exchange
A security with this name indicates the presence of an unconditional debt obligation of the bank to pay the agreed amount to its holder by the due date.
Receipt
This species is no less common than those discussed above. It contains an order to a banking institution to issue a certain amount to its owner.
Certificates of deposit
They are also called savings. They certify the amount that its holder has deposited with the bank. In addition, the certificate of deposit confirms the right of the depositor to receive the amount previously paid by him with fixed interest.
Stock
This security is issued by an enterprise whose legal form is a joint-stock company. Its owner has the right to claim a certain percentage of profit in the form of dividends. In addition , the shareholder can take part in the management, as well as receive part of the property of the enterprise, which will remain in the event of its liquidation.
Finally
To date, stocks are the most effective investment of money (if we are talking about securities of large enterprises and corporations). They are quite accessible to private individuals.