General concept and types of securities

Securities have legal effect, confirm the property right of the owner, confirm debt obligations and regulate its relationship with the issuer of legislative acts. The owner of securities is called the investor, and the person issuing the securities is the issuer.

All securities are divided into basic and derivative. The main types of securities confirm the owner's rights to property, money, products. And production securities give the right to buy or sell the underlying securities. The main securities include shares, bonds, treasury obligations of the state. Derivative securities include options and futures.

Every modern person should know the concept and types of securities . The shareholding gives the right to the shareholder to receive a part of the profit in the form of dividends, to take part in the management of the joint-stock company, to receive a part of the cash assets upon its liquidation.

The 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 owner to demand payment of the entire amount of money previously agreed upon, which is a contractual obligation.

The deposit certificate confirms that cash is deposited with credit institutions and gives the right to its owner to receive a deposit.

Knowing the concept and types of derivative securities is necessary for the management of companies in their daily activities, in order to avoid misunderstandings with counterparties and suppliers. The option is a two-way contract that transfers the rights to buy or sell on a specific date at a specified price.

A financial futures is a contract in which an investor undertakes obligations to buy or sell to a counterparty at a specified price of a certain lot of goods. A futures deal is mandatory, unlike an option where you can lose a small cash prize, but refuse a future deal.

Important and the characteristics of securities, to properly use them, exchange, repay, pledge, assign, give or transmit by inheritance.

All securities are divided into short, medium, long-term and indefinite due to their terms of cancellation. They can be both on paper, on special forms, and in non-cash form on the basis of entries in the owners' registers and on special depo accounts.

There are emission, which are issued in separate series and non-emissive individual securities. Documentary and non-documentary securities are singled out in the form of the issue .

Documentary securities are registered with the name of the owner, order, which are transferred by order of the owner, bearer. The easiest way is to determine the rights to valuable bearer securities by simply transferring it to another person. Without any commitment. Therefore, the concept and types of securities, knowledge of their characteristics, rights and obligations will help in the practical life of each leader. If the securities are registered, only the rights of claim are transferred. That is, when transferring a registered security, its former owner will only be liable if it turns out to be fake, and the person who issued this registered security will fulfill all the requirements. At the order security paper, the rights and obligations for performance are transferred by means of a transfer inscription on this paper. The holder of the order security has the right to demand fulfillment of obligations not only from the person who issued the paper, but from any person in the chain of endorsements.

Allocate owner and debt securities. Ownership papers include shares, bills of lading, confirming the property rights. Debt securities include bonds, promissory notes, bank certificates, which are issued for a limited period and necessarily require a return.

Consider the concept and types of securities helps when making transactions in the financial market, when calculating with counterparties. There are commodity securities: a bill of lading allowing to receive cargo and dispose of it, a simple warehouse certificate, a double warehouse certificate.