Securities have legal force, confirm the property right of the owner, confirm debt obligations and regulate its relationship with the issuer by legislative acts. The owner of the securities is called the investor, and the person issuing the securities is called the issuer.
All securities are divided into main and derivatives. The main types of securities confirm the owner's rights to property, cash, and products. And production securities give the right to buy or sell the main securities. The main securities include stocks, bonds, treasury bonds of the state. Derivative securities include option and futures transactions.
Every modern person should know the concept and types of securities . The share gives the right to the shareholder to receive part of the profit in the form of dividends, to take part in the management of the joint-stock company, to receive part of the money upon its liquidation.
A bond is a debt obligation of the issuer, which guarantees to pay a certain percentage annually to the investor, and after a certain time to pay the agreed amount in full.
The bill entitles the holder to demand, after the deadline, the payment of the full amount of money agreed upon earlier, that is, this contractual obligation.
A certificate of deposit confirms that the funds are deposited with credit organizations and entitles its owner to receive a deposit.
To understand the concept and types of securities of derivatives, it is necessary for company management in their daily activities to avoid misunderstandings with counterparties and suppliers. An option is a two-way contract that transfers the rights to buy or sell on a specific date at a specific price.
And financial futures is a contract in which an investor incurs obligations to buy or sell to a counterparty at an agreed price for a certain consignment of goods. A futures transaction is required, unlike an option, in which you can lose a small cash bonus, but refuse a future transaction.
The characteristics of securities are also important in order to use them correctly, exchange, redeem, pledge, transfer, give or transfer by inheritance.
All securities by their maturity are divided into short-term, medium-term, long-term and unlimited. They can be on paper, on special forms, or in non-cash form based on entries in the registries of owners and on special depo accounts.
Distinguish between issuing, which are issued in separate series and non-issue individual securities. According to the form of release, documentary and non-documentary securities are distinguished .
Documentary securities are registered with the name of the owner, order, which are transferred by order of the owner, bearer. The easiest way to determine the right to bearer securities is by simple transfer to another person. Without any obligation. Therefore, the concept and types of securities, knowledge of their characteristics, rights and obligations will help each leader in practical life. If the securities are registered, then only the rights of claim are transferred. That is, when transferring a registered security, its previous owner will be liable only if it turns out to be fake, and all the requirements will be fulfilled by the person who issued this registered security. In case of an order security, the rights and obligations to fulfill by way of a transfer inscription on this paper shall be transferred. The holder of an order security has the right to demand fulfillment of obligations not only from the person who issued the paper, but also from any person in the endorsement chain.
Allocate ownership and debt securities. Ownership securities include stocks, bills of lading, confirming ownership rights. Debt securities include bonds, bills of exchange, bank certificates, which are issued for a limited period and require a return.
It helps to take into account the concept and types of securities when making transactions in the financial market, when settling with counterparties. There are commodity securities: a bill of lading that allows you to receive and dispose of the goods, a simple warehouse certificate, a double warehouse certificate.