Classification and types of securities. Transactions with bills Signs of a security
Security, negotiability of securities, availability for civil circulation, standardization of securities, seriality of securities, documentation of securities, recognition by the state, adjustability, liquidity, riskiness, mandatory performance of an obligation, government bond, bond, bill, check, deposit and savings certificates , bearer bank passbook, bill of lading, share, privatization papers, double warehouse receipt, warrant, warehouse receipt, warehouse receipt, junior securities, equity securities, senior securities, debt securities, registered securities, order securities, corporate securities, surrogates for securities,
Tests
1. The riskiness of a security is higher, the higher the yield on it
2. Name the main types of securities
a) stocks and bonds;
b) bills;
c) insurance policies.
3. A security, as a form of existence of capital, is
a) a product that has no real consumer value;
b) a commodity that has neither a productive form nor a monetary use value, but exists in the form of property titles;
c) a product that has neither material nor monetary use value, nor commodity, nor productive, nor monetary form, existing in the form of property rights;
d) a product that has neither real nor monetary consumer value, but exists in the monetary form of property rights.
4. Does not apply to basic securities
a) share; b) check; c) option; d) bill
5. Those with the highest degree of risk
a) bonds; b) shares; c) government bonds;
d) derivative securities
6. Securities based on property rights to a specific asset are
a) personal names; b) basic; c) derivatives.
7. The liquidity of a security is higher, the higher the risk on it
8. As the risks borne by the security decrease,
a) its liquidity and profitability increase;
b) its liquidity and profitability fall;
c) its liquidity increases and its profitability decreases;
d) its liquidity decreases and profitability increases.
9. order securities are
a) shares; d) bills of lading;
b) bills; d) checks.
c) investment shares;
10. A security is
a) document; d) movable property;
b) a set of rights; d) real estate.
11. A purchase and sale agreement after a certain period in the future at a price established at the time of conclusion of the transaction is
a) futures; b) warrant; c) option.
12. The document the holder of which receives the right to dispose of the cargo is
a) certificate; b) warrant; c) bill of lading.
13. The fixed annual amount of income received by the owner of the bond during its life is
a) annuity; b) percentage; c) dividend.
14. Share premium is
a) the difference between the par value of the share and its actual sale price on the secondary market;
b) income from the sale of shares during the initial issue at a price higher than the par value;
c) income from the sale of shares, which is received by the intermediary who places the shares on the basis of an agreement with the issuer.
15. The amount of dividend on shares of a closed joint-stock company is calculated as
a) the quotient of dividing the book profit of the closed joint-stock company by the number of shares;
b) the quotient of dividing part of the balance sheet profit by the number of shareholders;
c) the quotient of dividing the net profit of the company by the number of shares;
d) a fixed percentage in relation to the market value of shares on the date of payment of dividends.
16. Shareholder income expressed as a percentage of share price is
a) discount;
b) the amount of the dividend;
c) dividend rate.
A security is a document certifying, in compliance with the established form and mandatory requisites, property rights, the exercise or transfer of which is possible only upon presentation.
II.1 Types of securities and their characteristics
Only those that meet the following requirements are recognized as securities:
marketability;
accessibility for civil circulation;
standard and serial;
documentary;
regulation and recognition by the state;
liquidity;
riskiness;
mandatory performance.
Tradability is the ability of a security to be bought and sold on the market, and in many cases to act as an independent payment instrument that facilitates the circulation of other goods.
Availability for civil circulation - the ability of a security not only to be bought and sold, but also to be the object of other civil relations, including all types of transactions (loan, gift, storage, etc.)
Standardity - a security must have standard content (standardization of the rights that the security provides, standardization of terms, places of trading, accounting rules and other conditions for access to these rights, standardization of transactions associated with the transfer of a security from hand to hand, standardization of the form of the security itself and so on.)
Seriality - the possibility of issuing securities in homogeneous series and classes.
Documentation. A security is always a specific document containing all the details required by law. The absence of at least one of them entails the invalidity of the security or its transfer to the category of other obligatory documents.
Regulated and recognized by the state. Documents claiming to be securities must be recognized by the state as such, which ensures their good regulation and credibility. Poorly regulated and not recognized by the government securities cannot claim the status of securities.
Liquidity is the ability of a security to be quickly sold and converted into cash without loss to the holder.
Riskiness is the probability of loss associated with and inevitably inherent in investments in securities.
Mandatory performance. The legislation does not allow refusal to fulfill the obligation expressed by a security, unless it is proven that the security came to the holder through unlawful means.
Securities come in several basic forms.
In the Russian Federation, according to the Regulations on the issue and circulation of securities and stock exchanges in the RSFSR dated December 28, 1991, securities are a monetary document certifying the property right or loan relationship of the owner of the document in relation to the person who issued such a document.
Securities may exist in the form of separate documents or records
on the accounts. Securities can be divided into fixed and non-fixed income, government, municipal, corporate and derivative securities.
There are also mixed forms. Fixed income securities (also called debt securities) include bonds, certificates of deposit, checks, and bills. Fixed income securities are primarily stocks.
Mixed forms include conversion debt obligations and option loans, which have a certain similarity to bonds and represent a form of fixed income security that is transitional to shares. Both types of securities have a firmly fixed interest rate, but unlike ordinary corporate bonds, their purchase is associated with the opportunity to purchase shares in the future.
differences when reflected in accounting (several types of securities can be distinguished that have similar features).
Different types of securities may have their own accounting features:
- by their various connections with the authorized capital;
- to reflect the difference between the nominal value of the securities and its sale price;
- for accrual of income, etc.
All central banks can be divided into two groups - monetary and capital Central Bank.
Cash Central Banks formalize the borrowing of money - these are debt central banks. These include bills, deposits and savings certificates and others. Income from these securities is of a one-time nature and is obtained either by purchasing them at a price below their nominal value, or by receiving interest on their redemption. Cash securities are usually short-term (with a maturity of less than one year).
Capital Central Banks issued for the purpose of forming or increasing the capital (funds) of an enterprise necessary for the development of production. Capital securities are divided into equity and debt central banks.
TO share Central Bank relate all types of shares, and investment certificates.
An investment certificate confirms a share of participation in an investment fund and gives the right to receive a certain income from the Central Bank that makes up this investment fund.
Promotion - this is a perpetual Central Bank, indicating a contribution to the property of a joint-stock company (JSC) and giving the right to receive part of the JSC’s income, subject to division in the form of dividends, as well as to participate in the management of the enterprise.
Distinguish preferred and common shares .
A preferred share differs from an ordinary share in that the amount of dividends on it is fixed, agreed upon in advance and amounts to a certain percentage of the nominal value of the share (does not depend on the current profit of the enterprise). The amount of dividend on ordinary shares is not fixed; it depends on the profit received and the decision of the shareholders meeting to allocate a share of funds for the payment of dividends.
To debt central banks relate all types of bonds, mortgages, deposits and savings certificates. Debt securities certify the loan relationship. They can be either short-term (with a maturity of less than one year) or long-term (with a maturity of more than one year). After a certain period, the borrower must return the amount indicated on the bond (or mortgage). Income on these securities can be either regular (when certain percentages of the nominal value of the securities are paid regularly at certain times during the entire loan period) or one-time (received at the time of redemption of the bond due to the difference between the purchase and the nominal value), but in any In this case, the income is fixed and guaranteed.
Bonds can be issued by the state, as well as by private companies in order to attract borrowed capital. They are usually issued on the security of certain property. Bonds secured by a mortgage provide their holders with additional security against the loss of their funds, since the mortgage gives the bondholder the right to sell the mortgaged property if the company is unable to make proper payments. However, there are also unmortgaged bonds, which are debt obligations based only on confidence in the creditworthiness of the enterprise, but not secured by any property. Such bonds are issued by enterprises with a stable financial position.
Certificate of Deposit or Savings Certificate - this is a written certificate from the issuing bank about the deposit of funds, certifying the right of the depositor or his successor to receive the amount of the deposit and interest on it upon expiration of the established period. Certificates of deposit are issued to legal entities, savings certificates - to individuals.
All central banks are divided for registered and not registered (to bearer). The movement of each registered securities, any transactions with it are strictly recorded in the registration book maintained by the issuer.
Bill of exchange - this is a type of written promissory note of the drawer to unconditionally pay in a certain place the amount of money specified in the bill to the owner of the bill (the holder of the bill) upon the maturity of the obligation (payment) or upon presentation thereof.
There is also a number of secondary securities that secure the rights and obligations of the issuer and investor to carry out certain transactions with the securities. Such central banks include options, futures, rights, orders, etc.
Option - this is a short-term security that gives its owner the right to buy or sell another security during a certain period at a certain price to a counterparty who, for a monetary premium, undertakes the obligation to exercise this right.
Financial futures - standard short-term contracts for the purchase or sale of a certain security at a certain price on a certain future date. If the owner of the option can refuse to exercise his right, thereby losing the cash premium that he paid to the counterparty, then the futures transaction is binding for subsequent execution.
Warrants - these are securities expressing a preferential right to purchase shares of the issuer (most often ordinary shares) during a certain (usually several years) period at a certain price. In practice, the situation is such that banks empirically invent their own derivatives of securities and schemes for their use.
The main goals of banks' activities in the securities market (SMB) the following:
- - attraction of additional monetary resources for traditional settlement and credit activities based on the issue of Central Banks;
- - receiving profit from one’s own investments in the Central Bank through interest and dividends paid to the bank and the increase in the market value of the Central Bank;
- making a profit from providing clients with services for transactions with securities;
- expanding the bank’s sphere of influence and attracting new clientele through participation in the capital of enterprises and organizations, establishing controlled financial structures;
- access to scarce resources through the Central Bank, which gives such a right and the owner of which becomes the bank;
- maintaining the necessary liquidity reserve.
As for specific types of operations, their choice depends on the type of securities policy that the bank chooses for itself. At the same time, it is important to keep in mind, if possible, a complete list of the types of operations and transactions that make up stock activities in order to reasonably determine your priorities in this market.
CLASSIFICATION OF OPERATIONS WITH SECURITIES
Types (blocks) of operations Brief description of the relevant types of services, techniques for their execution, other comments. 1. Investments in securities by purchasing them on behalf (on behalf and at the expense of the client on the basis of a commission agreement or a receipt agreement).
2. Sale of securities on behalf (based on a commission agreement or agency agreement).
3. Investments in the Central Bank at your own expense.
4. Sale of own securities. Using the example of operations on behalf of:
*receiving instructions from the client (with an agency);
*transferring an order to a financial broker, if the bank itself is not one;
*receiving confirmation from the broker about the operation
*reconciliation of the transaction (in trust management or through a depository);
*removal of the securities certificate from the storage and its inscription (or corresponding instructions to the depositary);
*physical or non-cash delivery of securities
*cash payments (check, payment order)
5. Issue of own securities.
When issuing a Central Bank with registration of a prospectus:
*the issuer's decision to issue;
*preparation of the issue prospectus and other documents;
*registration of the issue of securities and prospectus
*publication of an issue prospectus and publication of a message in the media about the issue;
*opening a savings account;
*distribution of the Central Bank;
*registration of release results;
*publication of the results of the issue6. Information, methodological, legal, analytical and consulting services, services to support transactions with securities. Analysis of the securities market:
*Analysis of the possibility of completing specific transactions;
*studying and forecasting market conditions;
*consulting on the application of legislation;
*organization and support of admission of the Central Bank to the stock exchange;
*development of methodological and regulatory documentation for transactions with the Central Bank, relevant rules and procedures;
*professional education;
*development of a general portfolio strategy;
*current planning and control of securities portfolio management;
*tax planning;
*Central Bank assessment;
*development and implementation of individual strategies. 7. Mediation in organizing the issue and initial placement of securities. *development of documentation and terms of issue;
*preliminary assessment of papers;
*support of registration of issue with government agencies;
*guaranteeing the purchase of securities;
*creating a subscription group;
*selection of investors;
*primary distribution of papers;
*advancing the issuer before the receipt of funds for sold securities;
*preparation of reporting on release;
*publication of subscription results, etc. 8. Calculations for the Central Bank by time
These are rights to resources that are separated from their basis and even have their own material form. However, there is no reason to consider a contract for the purchase and sale of a house, the supply of a batch of raw materials, an equipment lease agreement, etc., as securities, if the terms of these transactions are individual and one-time in nature, if the transfer of rights arising from them can be ensured only by drawing up a new contract, and not by selling an already concluded contract.
In other words, only such rights to resources are recognized as securities that meet the following requirements:
Strictly defined form;
Necessary details;
The possibility of transfer to other persons has been determined;
Public credibility;
Appealability;
Availability for civil circulation;
Standardity and seriality;
Documentation;
Regulated and recognized by the state;
Marketability;
Liquidity;
First of all, any security must be compiled in a strictly defined law form And have all the necessary details(Part 1, Article 144). As a general rule, securities are written documents drawn up on special forms that have a fairly high degree of protection against forgery. If the security does not exist in a physically tangible form or their paper forms are placed in special storage facilities, the owner of the security is issued a document certifying ownership of a particular stock value. This document is called a security certificate.
As for the details of securities, they are established by law in relation to each specific type of securities permitted for issue. The absence of any of the details in a security or its non-compliance with the form established for it entails the nullity of the security, and counterfeiting of securities is punishable by law.
Further, in any security the legal opportunity to which the legal owner of the security has the right to exercise must be precisely defined. This may be the right to receive a specific amount of money, income in the form of dividends or interest, certain property, etc. In this case, the types of rights that can be certified by securities are determined by law or in the manner prescribed by it.
The most important feature of securities is possibility of their transfer to other persons. Depending on the type of security, the methods of transferring them can vary from the simplest to the most complex. With the transfer of a security, all certified rights are transferred to the new owner. In cases provided for by law or the procedure established by it, for the exercise and transfer of rights certified by a security, evidence of their recording in a special register (regular or computerized) is sufficient (Part 2 of Article 142 of the Civil Code).
Securities are characterized by public credibility. Its essence lies in the fact that the law extremely limited the range of those grounds, based on which the debtor has the right to refuse to fulfill his obligation. In particular, a security executed in accordance with all the rules cannot be challenged by the debtor with reference to the absence of a basis for the occurrence of an obligation or to its invalidity.
Negotiability- the ability of a security to be bought and sold on the market, and also, in many cases, to act as an independent payment instrument that facilitates the circulation of other goods.
Availability for civil circulation- the ability of a security not only to be bought and sold, but also to be the object of other civil relations, including all types of transactions (loans, donations, storage, commissions, orders, etc.).
Standardity- the security must have standard content (standardization of the rights that the security provides, standardization of participants, terms, places of trading, accounting rules and other conditions for access to these rights, standardization of transactions associated with the transfer of a security from hand to hand, standardization of the form of the security paper, etc.). It is standardization that makes a security a tradable commodity. An individual non-standard contract becomes limited by the scope of the transaction in which it was concluded. He can't handle. To transfer rights under this contract, it is necessary to conclude a new contract on individual terms. And, on the contrary, only a standard contract becomes capable of independent circulation, of passing from hand to hand as a special commodity, turning into a security.
Seriality- the possibility of issuing securities in homogeneous series and classes. In this regard, very often replaceable-standard, serial documents that can be issued and circulated in homogeneous groups are recognized as securities. Accordingly, a document that has a one-time property relationship with individual conditions - a document that has unique details and expresses a purely individual, non-repeating transaction - may not be recognized as a security.
Documentary- a security is always a document, regardless of whether it exists in the form of a paper certificate or in a non-cash form of account entry. Documentation gives the final “material” appearance to a product called a security. Only a document can fix the standard conditions for its circulation and use, ensure multiple transfers of a security from hand to hand as the same product, and become proof of the investor’s legal access to the rights provided by the security.
According to established legal practice, a security, as a document, must contain all the mandatory details provided for by law. The absence of at least one of them entails the invalidity of the security, or transfers this document from a number of securities to the category of other obligatory documents. For example, the absence of at least one mandatory detail can make a bill invalid or transfer it to the category of a promissory note, the relationship under which is regulated instead of a bill of exchange - by general civil legislation.
Regulatory and government recognition- Stock instruments claiming to be securities must be recognized by the state as such, which should ensure their good regulation and, accordingly, public confidence in them. Accordingly, poorly regulated stock instruments that are not recognized by the state as securities cannot claim the status of the latter. Compliance with this requirement is important to maintaining public confidence in the securities industry, which is a critical component of a favorable economic climate in the country.
Marketability- Tradability indicates that a security exists only as a special product, which, therefore, must have its own market with its own organization, rules for working on it, etc. Those resources, the rights to which are securities, should mostly belong to the market, be goods.
In international practice, securities are not defined unambiguously. Various definitions of this concept are presented in Fig. 2. .
Rice. 2. Definitions of securities in international practice
In accordance with the approved decree of the President of the Russian Federation dated November 30, 1994. No. 51-FZ, securities are defined as follows.
Security is a document certifying, in compliance with the established form and mandatory details, property rights, the exercise or transfer of which is possible only upon its presentation.
With the transfer of a security, all rights certified by it are transferred in the aggregate. In cases provided for by law or in the manner established by it, for the exercise and transfer of rights certified by a security, evidence of their recording in a special register (regular or computerized) is sufficient.
Securities include:
Government bond;
Bond;
Bill of exchange;
Deposit and savings certificates;
Bank savings book to bearer;
Bill of lading;
Privatization securities;
Other documents that are classified as securities by securities laws or in the manner prescribed by them.
The fundamental properties of securities are the following:
Appealability;
Availability for civil circulation;
Standardity and seriality;
Documentation;
Regulated and recognized by the state;
Marketability;
Liquidity;
Negotiability- the ability of a security to be bought and sold on the market, in some cases to act as an independent payment instrument that ensures the circulation of other goods.
Availability for civil circulation- the ability of a security to be the object of civil transactions (purchase and sale, loan, donation, storage, commission, order, etc.)
Standardity. A security must have standard content (standardization of the rights that the security represents, standardization of participants, terms, places of trading, accounting rules and other conditions for access to these rights, standardization of transactions associated with the transfer of a security from hand to hand, standardization of the form of the security and so on.). Standardity determines the negotiability of the price of the paper.
Seriality- the possibility of issuing securities in homogeneous series (tranches), classes.
Documentary. A security is always a document, regardless of whether it exists in the form of a paper certificate or in a non-cash form of entry into the accounts of the owners. Only a document can fix the standard conditions for the circulation of a security and its use.
According to current legislation, a security must contain all required mandatory details.
Regulatory and government recognition. Stock instruments claiming to be securities must be recognized by the state, which will ensure their regulation and the confidence of stock market participants in them.
Marketability. A security exists only as a special commodity, which must have its own market with its own organization.
Liquidity- the ability of the price of a security to be quickly sold and converted into cash or non-cash funds.
Risk. The possibility of losses associated with investments in securities, since the financial sector, as a secondary sector derived from real production, is sensitive to the probabilistic effects of unfavorable market factors.
Mandatory performance. In accordance with the law, refusal to fulfill the obligation expressed by a security is not allowed.
| Previous |