Concept and types of securities. Types of securities and their classification

31.01.202327.05.2017

1.1.3. Characteristics and properties of securities

Securities have the following fundamental economic characteristics:

1) liquidity– the ability of a security to be sold;

2) profitability– the ratio of income received from a security to investments in it;

3)reliability– the ability to perform the functions assigned to it over a certain period of time and in a changing market environment;

4) presence of independent turnover– the existence of specific stages in the process of circulation of a security.

1) urgent:

– the period of existence of securities: when they were issued for circulation, for what period of time or indefinitely;

– origin: a security comes from its primary basis (commodity, money) or from other securities;

2) spatial:

– form of existence: paper or, from a legal point of view, documentary form or paperless (undocumented);

– nationality: a security of domestic or another state (foreign);

– territorial affiliation: in which region of the country this security was issued;

3) market:

– the type of asset underlying the security, or its original basis (goods, money, total assets of the company, etc.);

– order of ownership: security to bearer or to a specific person (legal or individual);

– form of issue: emission, i.e. securities are issued in separate series, within which all securities are absolutely identical in their characteristics, or non-emission (individual);

– form of ownership and type of issuer: state, corporations, individuals;

– nature of circulation: are they freely circulated on the market or are there restrictions;

– economic essence in terms of the type of rights that the security provides;

– risk level: high, low, etc.;

– availability of income: whether any income is paid on the security or not;

– a form of investment: money is invested in debt or to acquire property rights.

The following requirements apply to securities:

a) they must have a nominal price;

b) the deadline for their circulation must be established;

c) a fiscal regime must be established - payment conditions.

In other words, securities must have the following properties:

– negotiability– a security can be freely bought and sold, and is also an independent payment instrument;

- availability for civil circulation: a security can be the subject of various agreements (purchase and sale, donation, storage, commission), and is the object of civil relations;

– standard– a security in its essence must have standardization of the rights inherent in securities, agreements, i.e., have a standard content;

– serial– the possibility of issuing securities in homogeneous series and classes;

– documentary– a security is a document, regardless of whether it exists in the form of a paper certificate or in a non-cash form of account entry;

– regulation and recognition by the state (securities must be recognized by the state as such, which will ensure they are well regulated and trusted by the population);

– marketability(a security exists as a special product that has its own market with its inherent organization, rules for working on it, etc.);

– liquidity(the ability of a security to be quickly sold on the market and converted into cash);

- risk(the occurrence of losses associated with investments in securities).

Securities as financial and monetary documents exhibit their properties as:

Documents confirming participation or membership in the issuing organization (shares, share certificates, share certificates, certificates of participation in investment funds, etc.). In the context of the securities market, belonging to the issuing organization, participation or membership in it means that the owner of this security has the opportunity to take part in the management of the issuer, that is, to take part in the general meeting of shareholders or participants, vote, make proposals, nominate candidates to the elected governing bodies of the issuer, to receive information regarding the activities and financial condition of the issuer, to take part in the distribution of the issuer’s property during its liquidation;

Debt documents, i.e. monetary documents indicating the existence of creditor-debtor relations between the issuer and the owner of the security (different types of bonds, certificates of debt, bills of exchange, commercial paper, etc.). When purchasing debt documents, their owner receives the status of a creditor of the issuer, and not the owner of the issuer's property. And, conversely, when purchasing securities confirming participation or membership, their owner receives the status of the owner of the issuer's property, and not a creditor. In the case of debtor-creditor relations, the right to participate in the management of the issuer’s affairs is not granted;

A means of payment (settlements), that is, they perform one of the monetary functions. The fulfillment of the monetary function by securities is possible because they also have value;

A means of ensuring the fulfillment of obligations. In some cases, when certain obligations are fulfilled, there is a possibility or risk that they may not be fulfilled. To reduce this likelihood or reduce the risk, the debtor (buyer) may pledge its securities to the creditor (seller) as a guarantee that in the event of failure to fulfill its obligations, the corresponding losses of the creditor (seller) will be covered by the value of these securities;

The practice of market relations dictates more and more new possibilities for the emergence of different financial instruments. It is from them that the world of securities is formed.

Securities do not include:

Documents confirming receipt of a bank loan (in particular, a loan agreement);

Documents confirming the deposit of funds in the bank (with the exception of certificates of deposit and savings certificates);

IOUs (not to be confused with bills of exchange!);

Wills;

Lottery tickets;

Insurance policies, etc.

In some countries, the main criterion by which some financial or monetary documents are considered securities, while others are not, is the legislative establishment of the list of securities. Here you need to pay attention to a number of important points.

Firstly, in a number of countries there is a regulatory list of securities, i.e. a list of monetary documents that have the status of a security.

Secondly, this list, as a rule, is enshrined in law, that is, in acts that have legal force.

Thirdly, the list of securities contained in the laws of different countries may be exhaustive or open. This means that in the first case, only those monetary documents that are directly indicated in the list are recognized as securities, while others cannot be considered as such. When the list is open, then the category of securities includes all monetary documents listed in the law, as well as others not specified in the list, if they meet the requirements established by law.

Fourthly, the lists of securities can be broad or narrow. For example, the new edition of the Law of Ukraine “On Securities and the Stock Market” provides for a wide list of types of securities - 15: shares, investment certificates, local loan bonds, enterprise bonds, government bonds of Ukraine, treasury obligations of Ukraine, savings (deposit) certificates, bills, mortgage bonds, mortgage certificates, pledges, real estate fund (FON) certificates, privatization papers, derivative securities, title securities.

The Japanese Securities and Stock Exchange Law (1948) contains a less extensive list - 9 types of securities: shares, government bonds, local bonds, special bonds of legal entities, secured and unsecured bonds of legal entities, investment certificates issued by legal entities and created in accordance with special legislation, beneficial trust certificates, securities issued by foreign governments or foreign entities having the same status as the above securities, certificates issued by order of the government.

The US Securities Act (1933) contains an even broader list of securities. According to this Act, the term “security” means “any short-term bond, share, treasury share, government bond, secured bond, certificate of debt, certificate of participation in any income distribution agreement, certificate of a secured asset trust, certificate of incorporation, certificate of subscription to a security, an outstanding share, an investment contract, a voting trust certificate, a certificate of deposit, an undivided interest in an oil and gas enterprise or other mineral rights, any put option, put option, double option or privilege associated with any a security, a certificate of deposit or a group of securities, or securities that are index-based or value-based, or any call, call, or double option or preference received on a national stock exchange relating to foreign currency or generally any instrument known as a “security”, or any certificate of ownership or interest, provisional or interim certificate, receipt, guarantee or option, or right of subscription, or right to acquire any of the foregoing.

Fifthly, each national securities market, in addition to a large number of common features with other national markets, has its own characteristics. These features may be real, which is explained by the historical development of a given country, or they may also have a linguistic origin. For example, if we compare the lists of securities contained in the above Japanese and American laws, it becomes obvious that when determining the types of securities, the Japanese approach is more “strict”, while the American approach is relatively “loose”. In Japan, the law is more careful about ensuring that only certain monetary instruments are securities. At the same time, US law is ready to recognize a significantly larger number of monetary documents as securities. For Japanese legislation, based on national and historical characteristics, it is not typical to use expressions like “any instrument that is understood as a security.” Conversely, the term “revenue distribution agreement participation certificate” or other terms represent features of the evolution of the American market.

Linguistic differences manifest themselves in two ways. In some places, securities that have a similar status are called by different terms. For example, in Europe, short-term government obligations are sometimes called “drafts”; in the USA, they are called “bills”. On the other hand, the same term can have different meanings. Thus, a written debt certificate “debenture” in the USA means a security secured by the reputation, and not by the assets of the issuer; in the UK, on the contrary, it is a security secured by the assets of the issuer. The term "income bonds" in the UK is used to define fixed interest bonds that are issued by insurance companies; in the United States, it means bonds in which the issuer guarantees payment of only the face value, and interest can be paid only if the issuer makes a profit and the board of directors makes a positive decision on the payment of interest.

Grantsev I. V., Dovgy S. O. and in. Privatization, investment and stock market: legal barriers and practice: V 4 t. K.: VAT “Ukrtelecom”, 2001. T. 4: Valuable paper and stock market. 725 pp.

For example, the Japanese Law “On Securities and the Stock Exchange” (1948), the Law of Ukraine “On Securities and the Stock Market” as amended in 2006 contain an exhaustive list, in the USA the list is open in the “Securities Law” (1933).

TYPES OF SECURITIES AND THEIR CHARACTERISTICS

The question of the economic essence of securities comes down to the analysis of the transferable debt obligation and the documentation of property rights to certain types of resources (real estate, land, goods, money, etc.), due to which these documents can be separated from real property and exist independently in the form valuable papers.

The Civil Code of the Russian Federation (Civil Code of the Russian Federation) provides the following definition of securities: a security is a document certifying, in compliance with the established form and required details, property rights, the exercise or transfer of which is possible only upon its presentation. With the transfer of a security, the rights certified by it are transferred collectively. The loss of a security, as a rule, makes it impossible to exercise the right expressed in it.

In the definition given by the Civil Code of the Russian Federation, the following distinctive features of securities can be distinguished: 1) these are documents; 2) these documents are drawn up in compliance with the established form and mandatory details; 3) they certify property rights; 4) the exercise or transfer of property rights is possible only upon presentation of these documents.

The above definition does not, however, completely exhaust all components. It also includes documents that are not considered securities. This applies, for example, to intrabank settlement documents (payment orders, payment requests-orders, letters of credit, guarantees and sureties), executive documents of courts, notarial authorities, warehouse documents, etc.

Securities also include various types of documents corresponding to the resources to which they express rights. Thus, shares correspond to real estate; corporate bonds, government securities, certificates of deposit and savings certificates express debt relationships; bills of lading, bills of exchange, checks are associated with the movement of goods.

General characteristics of securities:

Firstly, securities are monetary documents certifying a property right in the form of ownership title (corporate shares, privatization securities, checks, bills of lading, etc.) or a property right as the ratio of the loan of the owner of the document to the person who issued it (bonds corporations and the state, bills, etc.). Secondly, securities act as documents indicating the investment of funds. Thirdly, securities are documents that reflect the requirements for real assets (shares, checks, privatization documents, bills of lading, housing certificates, etc.) and for the securities themselves (derivative securities).

Fourthly, an important point for understanding the economic essence of securities is the fact that they generate income. This makes them capital for the owners. However, such capital differs significantly from real capital: it does not function in the production process.

It is impossible not to note such qualities of securities as liquidity, negotiability, market nature, standard, serial, participation in civil circulation.

Under liquidity refers to the ability of securities to be converted into cash through sale. To do this, it is necessary that the securities can be traded on the market. Tradability lies in the ability of securities to act as either an object of purchase and sale (shares, bonds, etc.), or a payment instrument that mediates the circulation of other goods on the market (checks, bills, bills of lading, privatization documents).

Securities exist as a special product that must have its own market with its own organization and rules for operating on it. However, goods sold on the securities market are a special kind of commodity, since securities are only title to property, documents giving the right to income, but not real capital. The isolation of the securities market is determined precisely by this quality, and the market is characterized for the most part by the free and easily accessible transfer of securities from one owner to another.

The securities market, like other markets, is a complex organizational and economic system with a high level of integrity and completeness of technological cycles. On it, securities serve as the subject of purchase and sale using a set of prices, which also differs from ordinary goods. They have a nominal (nominal) price, an issue price and a market price (rate).

Face price has a formal accounting value and is used as a basis for calculating dividends and interest in further calculations. Issue price means the selling price at the initial public offering of securities. It is determined by the yield of securities and the level of loan interest. Market price (rate)— the price at which securities are traded (sold and bought) on the secondary market (during their resale). Its value is influenced by the relationship in the market between the demand for securities and their supply.

Seriality means the issue of securities in series, homogeneous groups. It is closely related to standardization, since securities of the same type must have standard content (standard form, standardization of the rights granted by the security, standardity of validity periods, institutions of circulation of securities, etc.). Standardity makes a security a mass commodity of the same type.

Participation securities as a commodity in civil circulation lies in their ability not only to be the subject of purchase and sale, but also to act as the object of other property relations (pledge transactions, storage, donation, commission, loan, inheritance, etc.).

Regulatoriness, recognition by the state, riskiness, documentation, reliability are distinctive, although auxiliary, features of securities.

Securities must be recognized as such by the state. This is intended to ensure the regulation of the functioning of securities and investor confidence in them. The income generated by securities and the possibility of repayment of loaned funds, as a rule, depend on many factors with a probabilistic nature of interaction. This determines the riskiness of investments in securities. A security is characterized by a documentary confirmation of rights.

At the same time, in practice the term “book-entry securities” is widely used. Transactions with uncertificated securities can only be performed by contacting a person who officially records rights. The transfer, granting and limitation of rights must be officially recorded by a person responsible for the safety of official records, ensuring their confidentiality, and providing correct information about such records.

Securities in documentary and non-documentary forms must contain all the details required by law. The absence or incorrect execution of at least one of them means the invalidity of the document as a security of this type.

An essential economic characteristic of a security is reliability, i.e. the ability to perform the functions assigned to the security for a long period of time.

All of the listed features must be kept in mind when considering the economic essence and legal status of securities.

So, securities are a wide variety of documents for use in business activities. At the same time, they are united by one common feature - the need to present them for the implementation of the property rights expressed in them.

2. Classification of securities and their main types

The variety of types of securities predetermines the multiplicity of classification criteria.

It is traditional to divide securities based on the ownership of the rights certified by them. Rights may belong to: 1) the bearer of the security; 2) the person named in the security; 3) the person named in the security, who can exercise these rights himself or appoint another authorized person by his disposition (order).

In accordance with this, they distinguish: bearer securities; registered paper and order security.

Bearer security does not require identification of the owner to fulfill the rights, is not registered in the name of the holder. The rights certified by a bearer security are transferred to another person by simple delivery.

Registered security is issued in the name of a specific person. The rights certified by a registered security are transferred in the manner established for the assignment of claims (assignment). The person transferring the right under a security is liable for the invalidity of the corresponding requirement, but not for its execution.

Order security is issued in the name of the first acquirer or “to his order.” This means that the rights specified in them can be transferred depending on the endorsement made on paper - an endorsement. The endorser is responsible not only for the existence of the right, but also for its implementation.

The endorsement transfers all rights certified by the security to the endorser, to whom or to whose order the rights under the security are transferred.

An endorsement may be limited only to an instruction to exercise the rights certified by a security, without transferring them to the endorser (subordinate endorsement).

Sometimes registered and warrant securities are combined into a more general form of registered securities, in which the name of the original subject of rights is indicated. Then the general type is divided into two varieties: actual registered securities and order securities, distinguished by the fact that the subject of law can be indicated by the order of his predecessor.

Securities can be divided according to the criterion of purpose or purpose of issue: securities of the money short-term market and the capital (investment) market.

In turn, investment securities can be divided into two categories: 1) debt securities, based on a loan relationship and embodying the issuer's obligation to pay interest and repay the principal amount of the debt at the agreed time (bonds); 2) securities expressing ownership relations and being evidence of the owner’s share in the capital of the corporation (shares).

Some securities, despite the fact that their circulation period is less than one year, operate not in the money market, but in the capital market (for example, options).

Depending on the transactions for which securities are issued, the latter are divided into stock (shares, bonds) and trade (commercial bills, checks, bills of lading, certificates of pledge, etc.).

Stock securities They differ in the mass of their issue and are traded on stock exchanges.

Trading securities have a commercial orientation. They are intended mainly for settlements of trade transactions and servicing the process of movement of goods.

Taking into account the legal status of the issuer, the degree of investment and credit risks, guarantees for protecting the interests of investors and other factors, stock securities are divided into three groups: state and federal subjects, municipal and non-state. Among state The most common types are Treasury bills, Treasury bonds, government bonds, and savings bonds. TO municipal include debt obligations of local authorities. Non-state securities are represented by corporate and private financial instruments. Corporate securities are the obligations of enterprises, organizations and banks. Private securities can be bills of exchange, checks issued by individuals.

Features of negotiability on the market predetermine the division of securities into marketable (tradable) and non-marketable (non-tradable).

Marketable securities can be freely sold and bought on the secondary market within the framework of exchange and over-the-counter turnover. Once issued, they cannot be presented to the issuer ahead of schedule.

Non-marketable securities do not pass freely from hand to hand, i.e. do not have secondary circulation. This applies, for example, to securities, the issuer of which set a condition upon issue that they cannot be sold and must only be redeemed by the issuer itself. Restricted circulation securities can also be identified. Thus, shares of closed joint stock companies have restrictions on purchase and sale transactions.

According to their role, securities are divided into basic(stocks and bonds), auxiliary(checks, bills, certificates, etc.) and derivatives certifying the right to purchase and sell underlying securities (warrants, options, financial futures, pre-emptive rights, etc.). They may provide additional benefits, be associated with forecasting securities prices (for example, options on a stock index), ensure the appearance of the underlying security on foreign stock markets (depository receipts), etc. Due to their intermediate nature, they are defined as financial instruments.

Many types of securities constitute subject of emissions (securities). Issue-grade security is any security, including uncertificated paper, that simultaneously has the following characteristics: secures a set of property and non-property rights that are subject to certification, assignment and unconditional implementation in compliance with the form and procedure established by law; placed by issues, which are understood as a set of securities of one issuer, providing the same volume of rights to the owners and the same conditions of issue (initial placement); has equal volume and terms of realization of rights within one issue, regardless of the time of acquisition of the security.

It is advisable to classify securities according to the maturity dates of obligations: fixed-term securities with specific maturity dates and securities for which obligations are fulfilled upon presentation.

Securities can also be classified according to other criteria (documentary and uncertificated, revocable and irrevocable, with fixed and fluctuating income, etc.). When deciding on the grouping of securities, the purpose of the classification must always be taken into account.

2.1. Corporate securities

Corporate securities— these are securities issued by joint-stock companies, enterprises and organizations of other organizational and legal forms of ownership, as well as banks, investment companies and funds. Corporate securities are represented by various types: debt, equity and derivative securities.

Debt securities, mediating credit relations, when funds are provided for use for a certain period, are subject to repayment with payment of a predetermined percentage for the use of borrowed funds. In accordance with this form of raising funds, based on loan relationships, such types of corporate securities as bonds and bills, deposit and savings certificates of banks are used.

By purchasing equity securities, their owner becomes a shared owner, a co-owner of the enterprise. Such securities certify the right of the shareholder to a share in specific property of the joint-stock company.

In addition to a traditional investment portfolio consisting of stocks and bonds, derivatives include options, warrants, and futures contracts. Derivatives also serve the government securities market.

Corporate securities are issued upon: the establishment of a joint stock company and the placement of shares among the founders; increasing the size of the company's authorized capital; attracting borrowed capital by issuing bonds. A normally functioning stock market consists of two main markets: the corporate securities market, represented mainly by shares of enterprises and banks, and the government market ny securities. These markets must be balanced.

A unique situation has developed in Russia. The ratio of the capacities of the government and corporate securities markets is 10:1, while in most countries it is approximately 1:2.

In countries with a high level of development of market relations, corporate securities occupy leading positions on stock exchanges. Thus, in the USA they account for 2/3 of exchange turnover.

2.2. Stock

According to the Law of the Russian Federation “On the Securities Market,” a share is an issue-grade security that secures the rights of its owner to receive part of the profit of the joint-stock company in the form of dividends, to participate in the management of the joint-stock company and to part of the property remaining after its liquidation. The share indicates the shareholders' contribution to the authorized capital of the joint-stock company. The shareholder, being the owner of the acquired shares, participates not only in receiving the company's profit, he also bears the risk in the event of economic failures of the joint-stock company within the limits of the value of the shares owned by him.

The stock market in Russia is a developing one: its share compared to the value of the gross domestic product in the country is 2.3% (25.6% in Germany and 113% in the UK)’.

Shares exist as long as the company that issued them exists. However, during this time several owners of the same share may change.

The amount of money indicated on a share is called the par value of the share. A company that has issued a share indicating its par value, i.e. its price, reflecting the amount of authorized capital per share, does not yet guarantee its real value.

This value is determined only by the market. The price at which a share is sold (bought) on the market is called the market value of the share. This price differs from the price indicated on the share itself: it may be higher or lower than its par value.

Consequently, the nominal price of a share acts as a kind of guideline for determining the issue and market prices of the share and the size of the dividend. The share due to the shareholders of the company in the event of its liquidation is calculated in proportion to the number and par value of shares.

When a joint stock company is established, its shares are placed among the founders. They can be individuals and legal entities who have decided to establish a company.

The issue of shares is carried out by a joint-stock company.

A joint stock company is a commercial organization with an authorized capital divided into a certain number of shares, which certify the rights of their owners in relation to the company.

A joint stock company can be open (OJSC) or closed (CJSC), which is reflected in its charter and name.

The issuer of shares can be enterprises, investment companies and funds, banks and stock exchanges, i.e. structures created as joint-stock companies.

The issue of shares is carried out: during corporatization, i.e. when establishing a joint stock company and placing shares among its founders; when increasing the size of the initial authorized capital of the joint-stock company, i.e. upon subsequent issues of shares.

Joint stock companies can issue shares ordinary And privileged.

The main differences between ordinary and preferred shares lie in the nature of income generation (owners of ordinary shares receive dividends in that part of the net profit that remains after its distribution between the owners of corporate bonds and preferred shares) and participation in the management of the joint-stock company.

Ordinary share is a security that gives its owner the right to participate in a general meeting of shareholders with the right to vote on all issues within its competence, to receive dividends, as well as part of the property of the joint-stock company in the event of its liquidation.

Along with the issue of ordinary shares, a joint-stock company also has the right to place preferred shares, and the share of preferred shares should not exceed 25% of the total authorized capital of the company. The shares are called privileged, since the owners of these shares have privileges compared to holders of ordinary shares. A company can issue several types of preferred shares, each of which contains its own volume of privileges. A description of the privileges for each type of shares is made in the company's charter.

A joint stock company can issue several types of preferred shares, each of which contains its own volume of privileges. A description of the privileges for each type of issued shares is given in the charter of the joint-stock company.

Preferred shares can be: cumulative and non-cumulative; convertible and non-convertible; profitable (they are also called shares with the right to participate) and do not participate in the company’s profit in excess of fixed dividends; with deferred dividend; returnable and non-refundable; with a floating exchange rate, etc.

The Federal Law “On Joint Stock Companies” distinguishes two types of preferred shares: cumulative and convertible.

Cumulative preferred shares most common among preferred shares. When they are issued, it is provided that the unpaid or incompletely paid dividend on them, the amount of which is determined in the charter, is accumulated and paid subsequently. Failure to pay regular dividends on such shares does not constitute a violation of obligations on the part of the issuer.

Non-cumulative preferred shares do not allow unpaid dividends to accumulate. The owners of these shares lose dividends without any compensation if the joint stock company does not announce their payment.

Convertible preferred shares can be exchanged for ordinary shares or preferred shares of other types of a given company under the conditions specified in the company's charter. The terms of conversion are developed in preparation for the issue of these shares.

Non-convertible preferred shares cannot be exchanged for ordinary shares or other types of preferred shares.

Shares with deferred dividend are issued only to the founders of the company. Dividends are not paid on these shares until the amount of the maximum established dividend is reached on ordinary shares (if provided for in the charter of the joint-stock company). After dividends are paid on common shares, the remaining earnings (in whole or in part) are distributed to holders of deferred dividend shares.

Based on their repayment properties (although shares are securities that do not have a final maturity date), preferred shares are divided into returnable(reviews) and non-refundable.

Returnable privileges shares can be repurchased by the issuer either on the open market or directly from the holders of these shares, and the latter is paid an additional premium amount calculated as a percentage of the nominal value of these shares.

Non-refundable preferred shares are not subject to repayment by the company.

2.3. Bonds

A joint stock company has the right to finance its activities not only by issuing shares, but also by issuing bonds.

A bond is an issue-grade security that secures the rights of its holder to receive from the issuer within a specified period its nominal value and a percentage of this value fixed in it or other property equivalent. A bond may also provide for other property rights of its holder, if this does not contradict the legislation of the Russian Federation.

Bonds are issued in the form of a capital loan, and the buyer of the bond acts as a creditor, receiving interest on the invested capital within a predetermined period, and upon expiration of the bond, its face value.

Bonds can be registered or bearer.

Upon release registered bonds a joint stock company is required to maintain a register of bondholders. If such a bond is lost, the company renews it for a fee.

Upon release bearer bonds the company does not maintain a register of bondholders, and their names are not registered by the issuer. The rights of the owner of a lost bearer bond are restored by the court in the manner established by the procedural legislation of the Russian Federation.

According to the method of payment of income, they are distinguished: fixed income bonds, i.e. a predetermined interest rate calculated as part of the bond's face value; floating interest bonds, the income on which varies depending on changes in money market rates; zero coupon bonds (sold at a discount of any depth against the par value and repaid at par at the end of the term).

Payment of interest on bonds can be made both in cash and in the form of securities, in the form of property.

Corporate bonds are diverse.

Bonds can also be issued against security provided for these purposes by third parties.

According to the method of redemption, bonds with a deferred fund and bonds with a redemption fund are distinguished.

Callable bonds provide for the possibility of early repayment at the request of the owners. In this case, the decision to issue bonds determines the cost of redemption and the period no earlier than which the bonds can be presented for early redemption.

Irrevocable bonds are repaid within the repayment period established by the company at par, i.e. in the amount of money indicated on the front side of the bond.

Corporate bonds are divided into convertible and non-convertible.

Convertible bonds, like convertible preferred shares, are subject to exchange. They give the owner of bonds the right to exchange them for shares of the same issuer at a certain price and within a specified period, which makes them more attractive to investors. The company, in turn, does not have the right to place convertible bonds if the number of declared shares of certain categories and types is less than the number of shares for which such bonds provide the right to purchase.

Owners non-convertible bonds do not have a similar right to purchase shares.

Exchange bonds, as a type of corporate bonds, provide their owners with the right to purchase ordinary shares of other companies at a fixed price. At the same time, the shares themselves serve as collateral that ensures the fulfillment of the issuer’s obligations.

The reliability and profitability of corporate bonds can be determined taking into account their rating. (Rating is an assessment of the investment qualities of bonds using calculations of certain coefficients.)

3. Derivative securities and their characteristics. Financial instruments. Securitization of debts

Derivatives are “intermediate” securities, i.e. they represent time-limited rights to acquire other types of securities (primarily shares). Like all other types of securities, they are subject to innovation and can take on new forms.

The content and use of derivative securities is now increasingly influenced by the international securities market. They have become an organic part of this market, a means of mobilizing capital in some countries for investment in others. In particular, a new type of derivative securities—depository receipts (DRs)—has this property.

DRs are a special type of derivative securities. Like all similar securities, they have a certain underlying asset (stocks, bonds), but do not have the right to purchase other securities. They represent another type of right - the ownership rights of their owner to a certain number of securities of foreign issuers deposited in the depositary of a custodian bank. DRs take the form of a certificate, bank depository account statements and can be quoted on trading platforms.

DR is a secondary security issued by a custodian bank that has extensive international connections to help facilitate trading in foreign shares, overcome legal restrictions on ownership, and reduce transaction costs.

The main type of DRs are American Depository Receipts (ADRs, which have a more developed market). DRs are circulating on the international securities market, representing about one and a half thousand programs for their issue, developed by issuers of almost all developed and many developing countries (including Russia). The value of ADRs alone amounts to hundreds of billions of dollars. The main reason for such a wide issue of DRs is their effectiveness as a tool for attracting investments.

DR is a financial instrument that allows you to sell it at the current quote of the underlying asset and receive cash. DRs do not have a currency value, therefore, they are easier to export and import into the country. In Russia, the purchase of DR abroad is considered an operation related to the movement of capital, and therefore requires permission from the Central Bank of the Russian Federation.

American Depositary Receipts are traded, dollar-denominated financial instruments issued in the United States by depository banks and denoting ownership of non-U.S. securities (stocks). They allow investors to purchase and trade non-U.S. dollar-denominated securities in the United States.

The introduction and distribution of derivative financial instruments - futures contracts - on the Russian stock market is due to the solution of the problem of optimal placement of free funds and the choice of an investment strategy that would ensure not only the receipt of income, but also insurance against risks associated with unfavorable price changes.

Forward contract (forward) – This is an agreement between two parties for the purchase (sale) of a specified quantity at a specified date in the future at a certain price.

The price at which the asset will be delivered forward is the forward price. The asset delivered under a forward can be any, but the most common are: currency, shares, interest rates. The one who sells the forward contract delivers the asset. The buyer of a forward contract buys an asset. Execution of a forward contract is mandatory. Refusal of one counterparty to perform entails penalties. Contents of the contract, i.e. The quantity of the asset to be delivered, timing, and forward price depend on the agreement between the buyer and seller of the contract. A forward contract is not a standard; it is always an individual contract with unique parameters, so there is practically no secondary market for it. If a person holding an open forward position intends to liquidate, he can do so only with the consent of his counterparty.

Foreign exchange forward contracts– A forward currency contract is an agreement to buy (sell) a specified amount of foreign currency at an exchange rate agreed upon at the time of the transaction at a specified point in the future.

The exchange rate fixed in the futures contract is the forward rate. The forward exchange rate may differ from the spot exchange rate.

Future Interest Rate Agreement– another type of forward contracts are forward interest rate contracts, or agreements on a future interest rate - FRA (Farverd Rate Agreements).

An FRA is an agreement for a loan or borrowing with the conditional delivery of a specified amount of money in the future at an interest rate established at the time the contract is entered into.

Note that, unlike currency forwards, there is no delivery of money under an interest rate forward; in fact, with the help of FRA, the interest rate is only fixed.

Forward contracts on securities – An agreement between two parties to purchase (sell) in the future any quantity of securities at a price fixed at the time of conclusion of the contract is called a forward contract for securities. The asset of such a contract may be any securities. Most often these are stocks or bonds.

The forward price of a security is formed on the basis of the current spot price P at the time the contract is concluded, taking into account the possible income that the security holder would receive if he invested his funds in a bank deposit.

Futures contracts. An agreement concluded on an exchange between two parties for the purchase (sale) of an asset in the future at a price established at the time of conclusion is called a futures contract. The main difference between a futures contract and a forward contract is that the first is exchange-traded, the second is over-the-counter. Since a futures contract is an exchange-traded instrument, it has standard parameters (expiration date, type and quantity of asset, execution conditions) and its circulation is subject to exchange rules.

The price at which a futures contract is entered into is called the futures price. It is a quoted value and changes for a specific contract from session to session and during the session.

Based on the results of each trading session, the closing futures price (based on the last transactions before closing) and the average futures price are calculated. These futures settlement prices (the average or closing prices, depending on the rules of the exchange) are used by the clearing house daily to clear futures trades.

Every day, the clearing house calculates the variation margin - the amount that, as a result of changes in the settlement price of the futures contract, is won or lost by the participants in the transaction.

To limit the speculative activity of trading participants, exchanges also set position limits - these are restrictions on the number of open positions that one participant can keep open.

Price and position limits allow the exchange to reduce the risks of trading participants associated with non-execution of transactions and caused by reasons of a global nature.

A futures contract, taking into account possible risks, puts both the seller and the buyer in the same conditions. For each of them, the potential gains and potential losses are the same. If an investor is not confident in the reliability of his forecasts regarding the future development of market conditions, he should try to limit the risk of possible future losses. This can be done using another financial instrument - an options contract.

Option contracts. An option is a contract that gives the right, but not the obligation, to buy or sell an asset at a specified price in the future. The buyer of the option acquires the right to buy or sell the asset and the right to refuse the transaction in the event of unfavorable developments in market conditions. The seller of the option acquires the right to sell or buy the asset and gives the buyer the right to decide whether to exercise or not exercise the contract. The buyer of an option pays the seller a remuneration—an option premium—for the right to choose. The option seller exercises or does not exercise the option contract depending on the decision made by the buyer. The option is exercised at the asset price fixed at the time the contract is concluded. This price is called the exercise price, or strike price.

Based on their expiration dates, there are two types of option contracts: American and European. An American option can be exercised any day before the expiration date of the contract. European - strictly on the day of execution of the contract.

There are two types of option contracts: an option to buy an asset, or call option, and an option to sell an asset, or put option. The buyer of a call option is obligated to buy the asset when it is exercised, and the seller is required to sell the asset accordingly. The buyer of a put option is obliged to sell the asset, and the seller is obliged to buy it.

4. Government securities. Their types in Russia and in foreign countries

The role of government securities (GS) changed during the development of the economy. At first, government securities as one of the instruments of state credit were used mainly to cover emergency state expenses associated with wars and natural disasters (covering the budget deficit). Over time, government securities increasingly begin to influence the economy and play an indispensable role in the sphere of state regulation of monetary circulation.

In modern conditions, with the help of government securities, monetary policy is carried out in order to regulate the macroeconomy. The Central Bank of the Russian Federation (Bank of Russia), representing the government as an agent, buys and sells government securities on the securities market ("open market" operations) to regulate the money supply in circulation.

Government securities in the Russian economy: are the most civilized market way of forming public debt; ensure cash execution of the state budget by covering short gaps between income and expenses that arise due to the discrepancy in time between tax revenues and budget expenditures; In carrying out the state’s monetary policy, they act as a regulator not only of monetary circulation, but also of the development of the economy as a whole; the essence of monetary policy is to change the money supply in order to achieve a rise in the overall level of production, increase employment and prevent inflation; mobilize funds to finance targeted state and local programs of significant socio-economic importance; can act as collateral for a loan provided by the Central Bank of the Russian Federation to the Government, for loans taken by commercial banks from the Central Bank of the Russian Federation, as well as for loans received by enterprises from commercial banks.

International practice knows many types of financial debt obligations of the state.

In the modern world, the securities market is most developed in the United States: where the state acts as the largest borrower. In the USA, government securities, depending on the issuer, are divided into securities: federal government (treasury); government departments, agencies, etc.

Government securities, depending on their ability to be traded on the stock market, are divided into reversible and irreversible.

Reversible- these are securities that are traded in all sectors of the stock market. These include treasury bills (issued for a period of 3-12 months), treasury long-term bonds (issued for a period of 10-30 years). All negotiable securities are sold, as a rule, at public auctions held regularly at predetermined dates.

Treasury bills exist in paperless form - in the form of entries on accounts, all postings from one account to another are carried out through a computer system. Treasury intermediate-term bonds are either zero-coupon or on-balance sheet irrevocable bonds that cannot be redeemed until the end of their term. Long-term Treasury bonds usually have a callable option attached to them, giving the right to receive capital 3-5 years before their maturity (this comes with a number of conditions).

Income on convertible securities can be established in various forms: at a floating rate (depending on the degree of their profitability and inflation), in the form of a fixed coupon interest or discount income (sometimes there is a combination of the latter two types of income). Government securities are issued “to bearer” and registered. The form in which the state issues its debt obligations is determined by the nature of the demand existing in the market and the type of settlement systems used.

Irreversible- These are government securities that are not subject to purchase and sale. Refunds for these are made only to the buyer. They are non-transferable and cannot be used as collateral for loans. In the United States, the number of such securities is large and constantly increasing. These include savings bonds of the EE and NN series.

Series EE bonds are sold at a 50% discount and are redeemed at par. The difference between the selling price and the face value is equal to the total interest for the entire period of issue.

Bonds of the NN series are sold at par upon issue (it also ranges from 50 to 10 thousand dollars) and are issued for a period of 10 years. Interest on them is announced in advance (determined taking into account market conditions) and is paid twice a year. Bonds can be redeemed early, but at a price below par. Since the end of 1982, they have practically not been sold freely: they can only be purchased in exchange for series EE bonds with a minimum face value of $500.

In recent years, the number of government securities in the United States has been growing due to the issuance of bonds by various government agencies (Atomic Energy Agency, NASA, Export-Import Bank, etc.). These securities are eagerly purchased by investors because they are reliable, as they are secured not only by the assets of these institutions, but also guaranteed by the US government, which will never allow them to go bankrupt.

In Germany, the government securities market is also highly developed and has extensive experience of effective functioning. Government securities include loans from the federal government, federal bonds, and loans from federal railroads, post offices, lands, municipalities, and cities.

Government securities occupy an important place in the German stock market: their share in the turnover of all debt obligations is 40%. By issuing debt obligations, the state covers up to 50% of the domestic debt. In Germany, it is considered economically feasible to use government securities to cover budget expenses. Therefore, in this country, both the size of the state’s internal debt and the issuance of federal debt are simultaneously growing.

Most government securities are issued directly to the market. The volume of issues of individual loans of the federation amounts to 4-6 billion marks, issues of loans from federal institutions exceed hundreds of millions of marks. Loans are issued for a period of 8-12 years, and early termination of debt agreements is prohibited. Since 1972, in Germany, loan bonds have been issued only in non-cash form. Their movement is reflected through entries in the federal Debt Book or in the debt books of the federal states.

In Germany, along with marketable ones, non-marketable government securities are also issued. These include Series A and Series B Treasury certificates (the former pays interest annually; the latter accrues interest and pays it at maturity) and Treasury financial obligations, which are issued for one to two years to cover the short-term funds needs of the federal government and its agencies. Legal entities and individuals (but not banks and credit institutions) can purchase treasury financial obligations. This is an interest-free stock market instrument (they are sold at a discount).

Issues of government securities are also widely used in Japan (by housing and road construction corporations, infrastructure development, especially energy, as well as government agencies for financing regional state-owned enterprises), Great Britain (Bank of England bonds are very popular) and in other countries with developed economies.

5. International securities: classification, features of circulation in Russia

The Euromarket (formed by EU countries) is a capital market that has outgrown national borders. On it, international banking consortia (sometimes on behalf of the state) issue loans in foreign currencies or international units of account.

The source of Euromarket resources are national bank deposit accounts acquired by foreigners and placed outside the country issuing the currency. Deposits denominated in various currencies are traded on this market: Eurodollars, Euromarks, Eurosterling, etc.

The Euromarket is a collective concept consisting of the market for short- and medium-term loans (Eurocredit market) and the market for long-term loans (capital market). The first of these two markets is based on bank time deposits, which allow borrowers to provide both short-term loans (up to one year) and loans for a long period. The provision of short-term loans is simplified: a loan application can be submitted by telephone, telex or fax (followed by telegraphic confirmation). In case of long-term correspondent relations, the image of the borrower serves as collateral for loans.

Short- and medium-term loans (their sizes usually range from 0.5 to 100 million dollars) can be free and targeted. They are usually provided at two types of interest rates: 1) if the loan term does not exceed six months, then it can be obtained at a fixed interest rate; 2) if the loan is for a longer period and the inflation rate is significant, then the loan is provided on a floating interest rate basis (rollover loan) or on renewable rollover terms. A rollover loan (interest rates are reset after three to six months) avoids market risk for both the lender and the borrower.

The main instruments of short-term lending are: bills in one of the eurocurrencies; certificates of deposit; Euronotes, i.e. short-term obligations with a floating interest rate (issued for one and a half to three years with a bank guarantee).

The interest rate in the Eurocredit market is based on the deposit rate of international banks in London, which fluctuates depending on the market conditions and the premium for banking services; this interest rate is called the Libor rate.

The long-term loan market involves borrowing for a period of five to ten years or more. This is a Eurobond market where long-term capital is borrowed outside the national borders of the issuing country.

The Eurobond market can be divided into primary and secondary. The primary market involves: the announcement of the issue, the day the bonds are offered for sale and the day the primary market closes. To place Eurobonds, a special syndicate is created, headed by a lead manager and a group of guarantor banks. The bulk of Eurobonds are sold by small credit institutions. Eurobonds enter the secondary market after they are actually issued into circulation. It is in the secondary market that the liquidity of bonds is ensured.

There are two types of bonds traded on the Eurobond market: foreign and Eurobonds. Foreign bonds are a type of national bond. Their specificity is connected only with the fact that the issuing entity and the investing entity are located in different countries. There are two ways to issue foreign bonds: 1) bonds are issued in country A in its national currency and sold in countries B, C, etc.; 2) country A allows the opening of a market for foreign bonds issued in the currency of this country for non-residents. Eurobonds are loans from international financial institutions (for example, the World Bank), as well as loans issued by various international companies. The face value of a Eurobond is determined in one or more lyutakh. Foreign bonds account for approximately 25%, and Eurobonds account for 75% of the long-term loan market. The Eurobond market is an important part of the entire international capital market.

The issue of a Eurobond requires the approval of three parties: loan guarantors, issuing companies and sellers.

There are several types of Eurobonds: short-term obligations with fixed and floating interest rates, zero coupon, convertible bonds, etc. The most common are short-term obligations with a fixed interest rate (they make up approximately 2/3 of all Eurobonds). Eurobonds with a floating interest rate, issued in the currencies of different countries (in accordance with their exchange rates), strengthen the lender's currency insurance: he can suffer a loss only if all the currencies in which the Eurobond is issued are devalued in relation to the national currency of the lender. If at least one currency rate increases, then the owner of a multicurrency bond makes a profit, since he has the right to income in any of the currencies in which the Eurobond is issued. Eurobonds with “zero coupon” are also successful: their owners are attracted by the high interest rate that is paid to them after the bond expires.

Foreign securities on the Russian market. The instability of the economic and political situation in Russia is increasingly forcing owners of capital to invest it in securities of foreign companies. Their acquisition can be identified as a separate area of investment.

In Russia, foreign securities can be purchased, firstly, on stock exchanges, where they are listed and registered; secondly, on the over-the-counter market, where they are traded by commercial banks and investment funds; thirdly, by turning to the services of firms participating in the stock market of other countries.

There are a number of firms in Russia that have been investing capital in shares of companies in the United States and other countries for a number of years. These include, for example, the American-Russian Commercial Alliance (ARCA), an open joint-stock company with 100% foreign capital (registered in 1991).

ARKA is associated with the New York Stock Exchange, where it can purchase shares through intermediaries. It is very difficult to sell securities of Russian companies on the stock exchange. According to the rules of the exchange, it is necessary that: the market value of the company's shares be at least $100 million; the number of shareholders owning 100 or more shares is at least 5 thousand people; profit (before taxes) must be at least $100 million in the year preceding the application for admission to quotation, etc. In practice, only shares of the world's largest companies can be traded on the New York Stock Exchange. It is not easy for Russian companies to overcome such barriers.

Transactions with foreign securities are also carried out by the company "Russian Brokers" (Robrok), which in 1992 began transactions not only with shares of American corporations, but also with US treasury obligations. The client selects the securities he is interested in from the list, payment is made at the exchange rate on the New York Stock Exchange (payment is made in foreign currency and rubles). Brokerage companies Sovleks, Granika, etc. are actively working with shares of foreign companies. Their number is constantly increasing.

The penetration of shares of foreign companies into Russian stock exchanges is hampered by the lack of operational information communications with stock markets of other countries, the inability to correctly select foreign securities and act in contact with Western professionals. There are funds for the purchase of foreign securities in Russia: there are 20-25 billion dollars in circulation in the country. The acquisition of foreign stock values is an outflow of capital from Russia. If it occurs in accordance with current legislation, then it represents a legal form of capital export that corresponds to world practice.

Literature

Alekseev M.Yu. Stocks and bods market. -M.: Finance and Statistics, 1999.

Exchange business / Ed. IN AND. Kolesnikova and L.P. Krolivetskoy.-M.: Finance and Statistics, 2002.

Van Horn J.K. Market for securities and derivative financial instruments. – M.: 1 Federative Book Trading Company, 2000.

Zhukov E.F. Securities and stock markets. -M.: UNITY, 2001

The securities market and its financial structure./ Ed. V.S. Torkanovsky. – St. Petersburg: Kit, 2003

Plan:

1. Economic essence and definition of securities

2. Classification of securities

3. Value of securities

1. Economic essence and definition of securities

The Civil Code of the Russian Federation (Civil Code of the Russian Federation) gives the following definition of securities: a 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 presentation. With the transfer of a security, the rights certified by it are transferred collectively. The loss of a security, as a rule, makes it impossible to exercise the right expressed in it.

In the definition given by the Civil Code of the Russian Federation, the following distinctive features of securities can be distinguished:

1) these are documents;

2) these documents are drawn up in compliance with the established form and mandatory details;

3) they certify property rights;

4) the exercise or transfer of property rights is possible only upon presentation of these documents.

The list of securities given in the Civil Code of the Russian Federation does not clarify the situation either. The Civil Code of the Russian Federation includes: government bonds, bonds, bills of exchange, checks, deposit and savings certificates, bank savings books payable to bearer, bills of lading, shares, privatization securities and other documents that are classified as valuable papers. Current legislation does not provide a closed list of securities traded on the Russian market.

At the same time, from the above list it is clear that the securities include various types of documents corresponding to the resources to which they express rights. Thus, shares correspond to real estate; corporate bonds, government securities, certificates of deposit and savings certificates express debt relationships; bills of lading, bills of exchange, checks are associated with the movement of goods. Therefore, to reveal the economic essence of securities, it is necessary to consider additional qualities, without which the document cannot qualify for the status of a security.

Firstly , securities are monetary documents certifying property rights in the form title of property(corporate shares, privatization securities, checks, bills of lading, etc.) or property rights such as the ratio of the loan of the owner of the document to the person who issued it(bonds of corporations and the state, bills, etc.).

Secondly , securities act as documents evidencing investing funds. This is especially important for understanding the economic essence and role of securities. Here they play a major role as the highest form of investment, even in the absence of monetary income (payment of income is not provided for by the terms of the security), it still exists in the form of any advantages, benefits or other material benefits. The profitability indicator can vary over a wide range.

Third , securities are documents that reflect requirements for real assets(shares, checks, privatization documents, bills of lading, housing certificates, etc.) and to the securities themselves (derivative securities).

Fourth , an important point for understanding the economic essence of securities is the fact that they bring income. This makes them capital for the owners. However, such capital differs significantly from real capital: it does not function in the production process.

This is most clearly manifested in government bonds, which are issued for unproductive purposes (to cover the budget deficit). The money the government receives from issuing loans does not actually function as capital. However, bondholders are entitled to receive regular income in the form of interest, and therefore bonds serve as capital for them.

Other things being equal, income on real capital depends on the amount of capital operating in production. The amount of capital in the form of securities does not determine the amount of income it brings, but itself depends on the amount of income.

A kind of bifurcation of capital occurs. On the one hand, there is real capital, on the other, its reflection in securities. Real capital functions in the production process, and securities begin to move independently in the market.

Real capital may not yet complete the circuit, while the owner, for example, of shares, having sold them on the market, will already receive his money capital back. The transformation of securities into money is not directly related to the circulation of real capital. At the same time, the emergence of securities occurs on the basis of real capital. If real capital did not generate profit, then it would not be able to arise and develop into capital in securities, which claims to receive additional profit, but does not create it itself.

It is impossible not to note such qualities of securities as liquidity, negotiability, market nature, standard, serial, participation in civil circulation.

1. Under liquidity refers to the ability of securities to be converted into cash through sale. To do this, it is necessary that the securities can be traded on the market.

2. Tradability lies in the ability of securities to act as either an object of purchase and sale (shares, bonds, etc.), or a payment instrument that mediates the circulation of other goods on the market (checks, bills, bills of lading, privatization documents).

3. Securities exist as a special product that must have its own market with its inherent organization and rules of work on it. However, goods sold on the securities market are a special kind of goods, since securities are only title to property, documents giving the right to income, but not real capital. The isolation of the securities market is determined precisely by this quality, and the market is characterized for the most part by the free and easily accessible transfer of securities from one owner to another.

Securities have a nominal (nominal) price, issue price and market price (rate).

Face price has a formal accounting value and is used as a basis for calculating dividends and interest in further calculations.

Issue price means the selling price at the initial public offering of securities. It is determined by the yield of securities and the level of loan interest.

Market price (rate)- the price at which securities are traded (sold and bought) on the secondary market (during their resale). Its value is influenced by the relationship in the market between the demand for securities and their supply.

4. Seriality means the issue of securities in series, homogeneous groups.

5. It is closely related to standard, since securities of the same type must have standard content (standard form, standard rights granted by the security, standard validity periods, securities circulation institutions, etc.). Standardity makes a security a mass commodity of the same type.

6. Participation securities as goods in civil circulation lies in their ability not only to be the subject of purchase and sale, but also to act as the object of other property relations (transactions of collateral, storage, donation, commission, loan, inheritance, etc.).

Regulatoriness, recognition by the state, riskiness, documentation, reliability are distinctive, although auxiliary, features of securities.

The legislation regulates the rights that are certified by securities, the mandatory details of securities, requirements for the form of a security, the procedure for issuing, and other parameters of their circulation. State regulation in general is aimed at protecting the interests of investors and providing them with equal rights in the securities market.

Securities must be recognized as such by the state. This is intended to ensure the regulation of the functioning of securities and investor confidence in them.

The income generated by securities and the possibility of repayment of loaned funds, as a rule, depend on many factors with a probabilistic nature of interaction. This determines the riskiness of investments in securities.

A security is characterized by a documentary confirmation of rights. A person who has received a special license can record the rights secured by a security, including in non-documentary form (using electronic computers, etc.). The rules established for securities apply to this form of fixation of rights. A person who has recorded a right in a non-documentary form is obliged, at the request of the owner of the right, to issue him a document evidencing the secured right.

At the same time, the term “book-entry securities” is widely used in practice. Transactions with uncertificated securities can only be performed by contacting a person who officially records rights. The transfer, grant and limitation of rights must be officially recorded by a person responsible for the safety of official records, ensuring their confidentiality, and providing correct data about such records.

Therefore, when we talk about the book-entry form of securities, we mean a modification of the method of recording the rights provided by the security. However, in any case, securities are documents in paper form or in the form of corresponding entries stored in the securities register, on a “depo” account with the issuance of documents certifying the content of the data. Therefore, in order to exercise and transfer the rights conferred by a security, it is sufficient to have evidence of their recording in a special register or “depo” account (regular or computerized).

An essential economic characteristic of a security is reliability, i.e. the ability to perform the functions assigned to the security for a long period of time.

All of the listed features must be kept in mind when considering the economic essence and legal status of securities.

So, securities are a wide variety of documents for use in business activities. At the same time, they are united by one common feature - the need to present them for the implementation of the property rights expressed in them.

At the primary level, it is worth saying that there are two types of securities:

Securities.

Bearer securities.

Definition 1

A security is a type of document necessary to indicate the property rights of its owner.

Definition 2

A bearer security is a form of security that does not require registration, since when exercising any rights, it is impossible to identify the owner, because the name of the owner is not indicated in such a security.

That is, their difference lies in the identification of the owner.

What types of securities are there?

Article 143 of the Civil Code of the Russian Federation includes securities: bonds, government bonds, bills of exchange, shares, checks, deposit and savings certificates, bearer bank savings books, bills of lading, privatization securities and other documents that are required by securities laws or as established they are classified as securities.

Let's look at the concept of each paper.

Definition 3

A bond (from Latin “obligation”) is a debt and emission security that secures the rights of the owner to receive bonds from a legal entity or state executive or local authority (issuer) within a certain period of its nominal value and a fixed percentage of the value or other property equivalent .

Definition 4

A promissory note is a debt obligation that gives the owner the right to demand, upon the arrival of a specified period, from the person who issued or accepted the obligation, payment of the agreed amount.

Definition 5

Shares are a type of security that indicates the right to receive part of the profit of a joint-stock company in the form of dividends by the owner or shareholder, this in turn gives the right to participate in and manage the joint-stock company, part of the property remaining after its liquidation.

Definition 6

A check is a security that obliges the payment of a specified amount to the check holder.

Definition 7

Certificates of deposit (savings) are a type of security indicating the deposit of funds by a commercial or savings bank on a bank deposit. There is also a regulation on the return of deposits and interest after a specified period.

Definition 8

Bank savings book is a document confirming the owner’s right to receive a deposit and interest.

Definition 9

Bills of lading are an agreement on the conditions of carriage of goods, a type of distribution document. The purpose is to provide the owner with the right to dispose of the cargo.

Definition 10

Warehouse receipts are a type of security that represents a concluded agreement on the storage and acceptance of goods for storage. While the goods are in storage, the holder has the right to dispose of them as he wishes.

Definition 11

A pledge certificate, or warrant, is a security issued by a warehouse. It confirms ownership of the goods in the warehouse. It also gives the owner the right to purchase shares and bonds of any company within a certain period at a set price.

Definition 12

Privatization securities, or vouchers, are a type of security that gives the right to privatize state property.

Definition 13

An option is a contract in which one party has the right, within a certain period, to sell/buy an asset from the other party at the price specified in the contract, with the payment of a so-called premium.

Definition 14

A futures contract, or futures, is a contract that obliges the purchase and sale of an exchange asset within a specified period, at a specified price.

Definition 15

A deposit receipt is a type of security in the form of a bank certificate of indirect ownership of shares of foreign companies. It is kept on deposit with the bank of the country where the issuer is registered.

Definition 16

Mortgage is a document pledging property. For example, a mortgage.

In order not to get confused in concepts, functions, and definitions, we have systematized the basic approach to the classification of securities. This is necessary, as it gives an understanding of the structure of the organization of the securities market and their processes in Russia.

Bearer papers can be classified according to the following criteria:

discharge;

government bonds;

bonds;

certificates of deposit and savings;

bearer bank savings books;

single and double warehouse receipt;

bills of lading;
privatization papers.

By organizational and legal affiliation:

groups of government securities;

groups of corporate securities.

By method of issue registration:

emission (security that includes the issuer’s sequential actions towards the issue and placement of a series of securities);

non-emission.

The classification by class and method of release can be reflected in this diagram (Fig. 1)

Picture 1.

By function:

debt (repayment of the debt amount by the appointed date with interest payment);

equity (determining the investor’s share in capital);

payment (securities serving as official means of payment);

title of title (intended to service the circulation of goods);

derivatives (uncertificated form that arises in connection with price changes);

collateral.

The classification by function is shown in the following diagram (Fig. 2)

Figure 2.

By method of transfer of ownership:

registered (debt and equity securities, except bank books, payment, documents of title, options, certificates, mortgages and warehouse receipts);

bearer (all securities that can be circulated on the territory of the Russian Federation. Exception: deposit, savings certificates, option, warehouse and mortgage certificates);

order documents (include payment and title documents).

Note: they differ from each other in the order of transfer of rights; some forms of securities can be two or three types at the same time. (Fig.3)

Figure 3.

Registered securities:

Plus, the documents can simply be transferred to the new owner. The person who sold the paper is responsible for it only if it turns out to be counterfeit. In this case, all claims are made against the issuer.

The registration of a transaction for the transfer of registered paper can be carried out in two ways:

transfer of rights from the moment of making an entry in the securities account of the new owner;

transfer of rights from the moment an entry is made in the personal account of the new owner, that is, through the register.

Transfer of registered paper to the new owner:

accordingly, either through the register - from the moment of receipt of the security certificate after recording on the personal account;

or through a securities account - from the moment of entry into the securities account.

Order securities:

The transfer of rights to order papers is carried out by transfer of an inscription, or by endorsement. With this type of transfer, only the signature of the seller of the security (endorse) is sufficient. He is also responsible for rights and implementation.

By application deadline:

short-term (up to a year);

long-term (from one to five years);

long-term (more than five years).

According to the form of receipt:

interest with constant and variable income;

coupons;

discount;

winning;

dividend.

By release form:

bearer securities in documentary form (all that are admitted to circulation on the territory of the Russian Federation);

bearer securities in uncertificated form (government bonds, bonds, shares). Note: shares in the Russian Federation are issued only in uncertificated form.

Definition 17

A documentary form is a type of issue-grade securities where the owner is identified on the basis of a security certificate or on the basis of an entry in a securities account.

Definition 18

Non-documentary form is a type of equity securities where the owner is identified on the basis of an entry in the register or on the basis of an entry in a securities account.

These two definitions are spelled out in the federal law “On the Securities Market”. From the analysis and systematization of the above classifications, we can draw the following conclusion: we examined classifications according to certain characteristics and types.

Listed, hybrid and redeemable securities

The following group of types of securities is provided by other specialists in this field. After all, it often happens that we classify one phenomenon in different ways, and there is simply no clear structure.

Definition 19

Securities are divided into:

listed security - equity or debt documents that are traded on an official stock exchange;

hybrid security – securities that have the properties of equity and debt financial instruments;

redeemable security – equity and debt securities. They are repaid when certain conditions are met or upon expiration. To make it clear, let’s look at an example: the subject is preferred shares (shares that have a number of rights, but at the same time certain restrictions are imposed on them). Over time, they must either be converted or purchased by the issuer. This share has no voting rights, so it becomes like a bond.

In theory, classifications have types, and types, in turn, have subspecies. Let us consider the characteristics of securities in this vein (Table 1). These subtypes are determined by the peculiarities of the stock market and the legislation of a particular country.

Table 1

Classification feature	Types and subtypes of securities
Origin	Primary – assets that are based on instruments, but are not included in securities (shares, bills, etc.)
Lifespan	Term securities are securities that have a specified lifespan (long-, medium- and short-term). Perpetual – securities that are not regulated by a term.
Forms of existence	Documentary and non-documentary forms
Nationality	Domestic and foreign
Type of use	Investment or capital documents are the object of capital investment (shares, futures contracts, etc.) Non-investment securities are a type of securities that serve monetary settlements in commodity or other markets (bills, checks, bills of lading).
Tenure	Bearer securities – all securities that can be circulated on the territory of the Russian Federation. Exception: deposit, savings certificates, option, warehouse and mortgage certificates. Registered – debt and equity securities, except bank books, payment documents, documents of title, options, certificates, mortgages and warehouse receipts. Orders – include payment and title documents.
Release form	Emission - securities that involve the issuer's sequential actions towards the issue and placement of a series of securities. Non-equity – securities issued individually or in small series.
Type of ownership	State Non-government - securities issued by corporations (companies, banks, organizations) and individuals.
Classification feature	Types and subtypes of securities
Nature of appeal	Market, or freely traded Non-marketable – circulation is limited, the security cannot be sold to anyone other than its issuer within the specified period.
Risk level	Risk-free and low-risk, risky
Availability of income	Income and non-income
Investment form	Debentures are bearer securities that have a fixed interest rate and are endowed with an obligation to repay the debt within a specified period (bonds, bank certificates, etc.). Owner's shares - documents that give ownership of the relevant assets (shares, bills of lading, etc.)
Economic essence (type of rights)	Shares, bonds, bills, etc.

In addition to this, there is another classification based on characteristics:

By element:

government;

mixed;

By degree of protection:

upscale;

low class.

By release form:

documentary;

non-documentary.

By validity period:

unlimited

presentative.

By the scope of rights granted:

with property rights;

with management rights;

with lending rights.

By territory of circulation:

municipal;

government;

foreign;

all-Russian.

By form of income:

constant;

spot.

If exchange is possible:

convertible;

non-convertible.

Definition of N

Classification is the ordering and division of things into varieties according to important characteristics.

All the classifications we have considered have common features, but at the same time some new element is observed in each.

Categories of securities

legal;

economic.

From the point of view of the legal category, a security has the rights:

ownership of a security;

certification of property and mandatory rights;

management right;

proof of transfer or receipt of property.

From the point of view of the economic category, a security has the following properties and characteristics:

liquidity;

profitability;

reliability;

presence of independent circulation;

potential for increase in exchange rate value

Knowledge of the different classifications of characteristics and types of securities is paramount. All practice is based on a knowledge base. This article helps to competently compile analytical accounting of transactions, monitor the movement of transactions, and effectively use them in circulation on the securities market.

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The financial market is a system in which relationships are built in the form of an exchange of economic goods. Financial instruments act as an intermediary in these relations ‒ securities. In order to understand the complex structure of the market, having zero financial literacy, you need to master basic information on this topic.

Definition of securities

Securities or, as they also say, stock assets‒ this is an official document that certifies the right to own some capital or its monetary equivalent. In essence, this is a special form of asset that confirms ownership of its owner. Moreover, this form of capital has the following characteristic features:

is an instrument that serves and provides the possibility of market transactions between several participants;
certifies the existence of certain property relations or facts of loan;
characterized by compliance with the form and content of the document with the mandatory indication of details, which differ depending on the type;
is determined by the category of property to which this form of capital is tied, namely to objects of movable property.

Criteria determining the types of stock assets

The stock market is very large and diverse. In order to understand what kind of securities there are and to facilitate the study of information in this area, it needs to be structured. There is a certain classification that is subject to the principle of complex systems.

Each individual property of these financial documents is a subsection of one group and, at the same time, may belong to another group of characteristics.

The classification described in the table below covers the entire system of similar and distinctive characteristics.

Types of securities and their characteristics: table

Characteristic	Concept and types of securities
Repayment term	Urgent - repaid in due time.
	Perpetual - issued for an indefinite period (government loan bond).
Form	Paper – that is, documentary.
	Undocumented - the owner is established on the basis of a registry entry.
Ownership type	Bearer - the person of the owner is not indicated (a promissory note that can be repurchased without confirming the rights to it).
	Registered - rights are transferred subject to confirmation of the identity of the owner (a bill of exchange indicating the name of the holder and recipient).
Type of issuer	State. This is a separate category. Their issuer is always only the country in which they have a certain value. Types of government securities: bonds, bills.
	Commercial, issued by corporations, companies, organizations, etc.
Transmission type	Transfer by agreement of the parties.
	Orders - which are transferred by endorsement (for example, a bill of exchange).
Release form	Emission - placed in issues with identical volume and term of exercise rights within one issue
	Non-emission - that is, piece ones.
Place of appeal	Market - have the ability to sell and resell on the stock market.
	Non-market - purchased once without the right to resell.
Cost (face value)	Constant – indicating the monetary denomination.
	Variable – when a fixed monetary denomination is not specified.
Form of raising capital	Shares - indicate co-ownership of property.
	Debt - confirms the availability of credit.
Income	Profitable – when the purpose of placing on the market is to make a profit.
	Non-profitable - not generating profit as such.
Purpose of use	Investment - which are used to invest money as capital.
	Non-investment (bills of lading, bills).
Risk	Risk-free - short-term government. obligations.
	Risky - all except government ones.
Nationality	National.
	Foreign.

Common types

The status of value is assigned to assets based on the domestic legislation of the country. Based on the country in which they are sold, that is, where they are issued, in accordance with what criteria they are issued, there are main types of securities, a comparative analysis of which is offered in the table.

Table of types of securities

View	Issuer
Promotion	Issued by an enterprise or organization to make a profit in the market
	The bank issues to an individual
Bill of exchange	State or organization
Certificate of Deposit	Issued by the bank
Mortgage	Enterprise or organization
Investment share	Organization
Mortgage participation certificate	Any organization
Bill of lading	Enterprise or organization
Bond	Issued by organizations of any form of ownership
Issuer option	Any organization
Simple (double) warehouse receipt	Enterprise or organization
Privatization	Issuing country
Depository receipt	Bank
Savings certificate	Issued by a bank to an individual
Check	Bank

When we talk about the stock market, stock trading is most often mentioned.

Promotion – a registered financial document that gives its holder the legal right to receive dividends in the form of income or property equivalent from the enterprise whose shares he owns.

Distinctive features:

has two prices: indicated and real;
determines the receipt of part of the profit of the joint-stock company as dividends. Dividends may not always be accrued, depending on the decision of the annual meeting of shareholders;
provides the opportunity to participate in the management of a joint stock company;
in case of liquidation, it provides the right to return funds without fail. Liquidation of a JSC can be voluntary or forced, through bankruptcy.

The share does not have a uniform appearance, but differs in the type of income by ordinary and privileged. Ordinary shares have all the properties described above.

Privileged ones differ:

priority in obtaining income when selling a joint stock company;
mandatory presence at the meeting of shareholders, while the right to vote applies only to issues of reorganization and dissolution of the company.

Bank passbook – confirms the presence of a deposit in the bank. Regulates the procedure for returning deposited funds to the depositor and paying with interest, strictly stipulated in the agreement between the bank and the depositor.

Bill of exchange - a financial obligation that a borrower gives to a lender. The purpose of a bill of exchange is to serve as a means of settlement and payment.

Depending on the obligation to pay, a bill can be:

simple- such a bill records the debtor’s promise to pay the bill in due time;
transferable- such a bill indicates the person who is asked to pay the specified amount by the debtor within a clear time frame.

Certificate of Deposit - a kind of bank certificate that establishes the fact that a legal entity has made a certain monetary deposit to the bank and regulates the process of the bank returning the deposit with charges on it.

Mortgage – a document secured by a mortgage, which specifies the terms of the loan agreement and the parameters of the property transferred under the mortgage. It has the property of negotiability, can be transferred by endorsement and can also be the subject of a pledge.

Collective investing ‒ this is a form of investment when the funds of several investors are combined into a cash share and transferred to the manager for the purpose of investment. The founder of a mutual investment fund, that is, the investor, owns part of the property, documented - this is an investment share.

Investment share refers to registered assets. Secures a monopoly on the property of the unit holder over the share of the property of the mutual fund. The fund is distinguished by its type, method of management and specialization and consists of property that is transferred by shareholders to the company manager for trust management.

As a financial instrument, it is optimal for those investors who have a small amount and are ready to invest for the long term.

Mortgage participation certificate – a type of document in the field of mortgage lending. Certifies the existence of ownership of a certain part in the common property under the mortgage. The right to own it also governs the receipt of funds for fulfilled obligations required by the terms of the mortgage coverage.

Bill of lading – a maritime transport document on the basis of which cargo is transported. A kind of sea waybill, which is accepted in international maritime transport, its use is caused by the need to carry out operations with the transported cargo while the ship is making voyages. A bill of lading is a registered type of security and is most often issued in the name of the ship's captain.

Bond - a type of debt obligation that secures for the owner the opportunity to receive annual income or property equivalent to the value of the income.

Essentially, it is a type of loan that is provided to a borrower by an investor. The borrower can be both corporations and the state. The interest, or face value, indicated on the bond is repaid by the issuer within a strictly established period. After redemption, the investor receives a coupon or discount income, so bonds are divided into coupon and discount.

By type of issuer there are:

state– issued by the state;
municipal‒ issued by local governments to finance local programs;
corporate bonds are created by enterprises and companies.

Issuer option - a kind of contract for the acquisition of the right for the buyer to carry out financial activities during a certain period, therefore, the type of repayment is urgent. The option is considered exercised if the acquisition is successful.

Simple warehouse receipt – the presentation of the asset, which confirms the fact that the owner’s goods are stored in the intermediary’s warehouse. The denomination is a product that is in a state of alienation during storage.

Double warehouse receipt – differs from a simple one by the presence of a second part or a certificate of pledge (warrant). The owner most often needs the second part to receive a loan for the goods. In this case, the warrant is transferred to the lender and returned when the collateral is repaid. Both parts refer to financial documents and give the privilege to each of the owners to dispose of the goods.

Privatization papers – confirm the holder’s right to own part of the property in the process of privatization of state-owned enterprises.

Depository receipt – is confirmation of the presence of shares issued by a foreign issuer, indicating the purchase of shares abroad, but issued in the country of the investor.

Savings certificate – a form of bank certificate, which is evidence of the availability of a freely circulating cash deposit for individuals.

Check - a kind of order that indicates an order for the bank to pay a specified amount to the drawer for the sale of assets within a clearly defined time frame.

Primary and secondary stock assets

Depending on the type of release, the following classification is distinguished:

primary or main, the assets of which are directly property (movable and immovable), money, resources. All assets except the depositary receipt are primary;
secondary‒ provide the owner with the right to own property, indirectly, through basic stock instruments. These include: warrant, depositary receipt.

A warrant can be either a primary or a secondary document. In the first case, it is a receipt confirming the ownership of the goods in the warehouse. In the second, the warrant gives the right to purchase other bonds or shares.

Qualitative properties of securities

Since the main objective of all existing stock assets is their ability to replace goods on the stock market, it is customary to distinguish the following properties for the criterion for assessing their independent circulation:

negotiability;
mandatory performance. Fulfillment of obligations in accordance with the law;
availability for private circulation (donation, storage, etc.);
standardity is what makes it capable of circulation on the market;
documentation and registration. Regardless of the form (paper or electronic), a mandatory register entry about the release is made. It is mandatory that the details of securities must comply with legal requirements;
recognition by the state. Otherwise, a low level of trust is reflected in their market value of assets;
marketability and liquidity - respectively, the ability for good turnover and rapid conversion into cash;
estimated possibility of loss, or risk.

Stock market concept

The stock market (securities market) allows you to mobilize funds to expand economic activity and information about economic conditions. The main participants in the stock market are:

issuer;
investor;
intermediary

The issuer is always an enterprise or company that issues financial documents to raise funds. The investor is the party that acquires capital or its varieties with the help of certain intermediaries.

A qualitative understanding of the fundamentals of the stock market is the key to optimal operation of the mechanism for the redistribution of global capital.

1.1.3. Characteristics and properties of securities

1. Economic essence and definition of securities

What types of securities are there?

Listed, hybrid and redeemable securities

Categories of securities

Definition of securities

Criteria determining the types of stock assets

Types of securities and their characteristics: table

Common types

Table of types of securities

Primary and secondary stock assets

Qualitative properties of securities

Stock market concept

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