Securities and their types

Securities and their types are, in fact, documents that, under the observance of mandatory requisites and the required form, certify property rights. These rights may be transferred or exercised only upon presentation of such a document. For the transfer of rights that are certified by this document, it is necessary to prove their securing in a special established register. In addition, it is customary to say that securities and their types represent certain varieties of things, being movable property. It is pertinent to say that they are the property right for part of the property or for the whole. This is what makes them divide into debt, equity and derivatives. Other forms of separation are presented below.

Securities and their types

Let's take a look at some of the categories and types that you might encounter. Securities are non-issue securities, for example, such are bills of exchange, as well as emission, in this case we are talking about shares or bonds. The legislation clearly specifies that with regard to issuance securities: they are understood as a document characterized by certain features: it fixes a set of non-property and property rights; Has equal time and scope of rights in one issue from the date of acquisition; Is placed in issues.

Issue of securities can be carried out in documentary and non-documentary form. A documentary form is understood as drawing a security on a form that meets the regulatory technical requirements of the established documentation. To be engaged in the production of forms is allowed only to the organization that has received a legal right to do so. In the case of issuance of a non-documentary form of a security, we are dealing with its lack of physical form, but its existence and fixation for the owner is necessarily stated in the register. The issuance of such papers is documented by a special document, called a global certificate, in which the parameters of the issue are necessarily prescribed.

Documentary securities and their types

Such securities may be order, registered or bearer. The order is transferred to another person solely on the orders of its owner, that is, on the written out warrant. As an example of order paper, you can quote a bill. The name of the owner is indicated on the form paper. Such a document is transferred to another person only with the help of a cession, that is, a transfer inscription. On the form in this case the name of the future owner is necessarily indicated. If we talk about bearer paper, then it does not have the name of the owner, but it is transmitted through delivery. Separately it is necessary to consider state securities and their types. We can say that their main difference from all others is the release by the state.

All papers are placed in the primary market, but are already circulating on the secondary market. It is the primary market that generates profits for issuers who have released their securities for sale. Accommodation can be closed and open. Closed refers to the placement of securities in a circle of predetermined persons at a cost that is stipulated in advance, which avoids widespread distribution. Open placement implies granting access to securities of an unlimited number of persons. In this case, the issuer can place them at a price that will be most beneficial to him. The secondary market is exchange, over-the-counter and organized. Here, from the sale of securities, profits are received by all participants.

In this material, some types of securities and their classification in general were considered. For a more thorough study of this issue, you can refer to specialized sources.