What are securities, their types, comparison

List of types of securities

Securities are a special document, which is drawn up in a certain form with the presence of details, confirming property rights.

Regulation of issues of circulation and classification of securities is contained in the Civil Code and regulations.

The types of securities are listed in the provisions of civil law:

A bond is an issue-grade security.
Promissory Note: A promissory note or bill of exchange that contains a promise to repay a debt. A promissory note confirms the obligatory repayment of a debt within a certain period. Bill of exchange - states an offer to pay a certain amount after a certain period of time.
Savings and certificates of deposit.
A bill of lading is a standard document for transporting goods. Types of bills of lading confirm various cargo transactions. The bill of lading is issued in accordance with the law. The bill of lading can be issued in several original copies.
Shares are a document that confirms the right to receive profit from the shares of a certain company that he owns.
Privatization securities.

Additionally, Article 912 of the classification sets out the following types of securities:

Warehouse certificate;
Double warehouse receipt;
Simple warehouse receipt;
Warehouse certificate is part of a double certificate;
Mortgage.
Investment share is a document that confirms the right to a share in a mutual investment fund.

A savings book is considered as a security - a document that confirms an agreement with a bank regarding a deposit in this bank.

Types of government securities differ in their content and functionality.

Ledger

Accounting book is a document for recording securities held by an organization.

The book records:

issuer of securities;
nominal price of each type of valuable documents;
cost at the time of purchase;
details: number, series and other data;
date of purchase/sale;
number of copies purchased.

According to the law, the accounting book can be kept electronically, provided that current data is printed at least once a year.

Concept, functions, content and types of government bonds

Government bonds are securities that are issued and are used to attract funds from individuals and legal entities. They exist in the form of loans for the needs of social or other areas. According to the law, bonds confirm the obligation to pay the owner of the bond a certain amount and pay interest regularly.

Bonds are among the main types of securities that are regulated at the state level. Types: bearer bond and registered bond. The beneficiary or security holder is not an obligor under these bonds.

Government bonds are issued by the central bank or other government bodies that have these powers. Government bonds confirm certain property rights of the owner of this document.

Government bonds are also defined as securities that represent a loan provided to the state by legal entities or individuals.

Key signs of attitude towards valuable assets

Additional definitions of securities reflect their key features that prove their relationship to valuable assets.

Signs of a Central Bank:

a document proving property rights and presented to confirm this right;
the paper is a standard document and has legal force;
security is a form of capital. It is a commodity value and a kind of substitute for money.

The rights of the owner of securities are protected by the state. The circulation of documents and the procedure for their issuance or redemption are regulated by federal law.

Concept, functions, contents of the bill

A bill is a type of security, the issue and operation of which is carried out in accordance with the norms of bill law. This paper is confirmation that one person has a debt to another. Rights to a bill of exchange may be transferred to another person.

The main function that a bill of exchange has is control. The document specifies the amount and deadline for payment of the obligation to one party from the other.

Contains the word “bill” in the name;
The amount and parties to the contract are indicated;
Place of payment;
Sum;
Date and signatures of the parties.

Types of bills:

Draft or Transfer: An order from the person who lent the amount to the person who received the loan to pay it at a specified place at a specified time.
Solo or Simple: An unconditional obligation to repay a debt.

Types of bills have their own characteristics. A promissory note contains a promise of payment, a bill of exchange confirms an obligation setting out a number of conditions.

The concept and functions of a check as a type of security

A check is a type of security that contains an unconditional order regarding the payment of the amount specified in the check to the check holder. With this document, the drawer expresses his order to the bank for payment.

A check can be issued by any individual or legal entity that has funds in a bank account. The owner can dispose of these funds at his own discretion, and also issue checks for a certain amount. In this case, the payer is the bank, and the holder of the check is the person who received it from the drawer.

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Functions of the Central Bank

Valuable documents perform the most important functions:

They are an indicator of the economic situation. A stable exchange rate and low volatility indicate a normal state of the economy.
Perform a distribution function. Capital distribution is carried out with the help of securities.
Temporarily mobilize financial resources scattered among small businesses and individuals.
Regulate cash flow.

In addition, banks, government agencies and commercial organizations use the Central Bank as a credit and settlement instrument.

Certificates of Deposit and Savings

Certificates of deposit and savings are documents, securities that confirm the existence of a deposit in the bank. The document gives the right to make a cash deposit and receive interest on this deposit.

The bank may issue such documents if:

Operates for more than 2 years;
The reporting was confirmed by auditors;
Fulfills all obligations and complies with laws;
Fulfills reserve requirements;
Has a reserve fund of a certain volume.

Reflection in tax accounting

Currency values are important for taxation and accounting purposes. Assets are recalculated due to changes in foreign currency exchange rates. The resulting exchange rate differences can be either negative or positive.

In subaccount 91 of the “Other Income” account, positive differences in cost are taken into account, negative differences in the “Other Expenses” subaccount. The first category is included in non-operating income, and the second, accordingly, is included in non-operating expenses.

Passbook, its functions

The savings book is represented by registered books and bearer books. The second option is a security that confirms the presence of a deposit in the bank and certifies the right to this deposit. The document contains the necessary names, an indication of the deposit amounts, amounts that were withdrawn from the account and credited to it.

Possession of such a document gives the rights to:

To a bank deposit;
To receive profit in the form of interest;
To transfer funds to other persons.

The main function is control, which allows you to record all movements on the account.

Bonds

A bond is a security that certifies a loan relationship between its owner and the person who issued the bond. A bond is a certificate of debt that includes two main elements:

the issuer's obligation to return to the bondholder after the specified period the amount indicated on the title of the bond;
the issuer's obligation to pay the bondholder a fixed income in the form of a percentage of the face value or other property equivalent.

Thus, we can briefly formulate the following definition of a bond: A bond is a certificate of a loan, giving its owner the right to receive an annual fixed income (solid interest). The Law “On the Securities Market” provides the following definition of a bond: A bond is an issue-grade security that secures the right of its owner to receive from the issuer of the bond its nominal value or other property equivalent within the period specified therein. A bond may also provide for the right of its owner to receive a fixed percentage of the nominal value of the bond or other property rights. The yield on a bond is interest and/or discount.

Basic details of the bond form: corporate name of the issuer and its location; name of the security; holder name; serial number; nominal cost; Date of issue; type of bond; total amount of issue; interest rate; conditions and procedure for interest payment and bond repayment conditions; place of printing; postal details of the manufacturer of the security form.

I. Depending on the issuer, bonds are divided into:

government;
municipal;
corporate (they can be mortgaged or non-mortgaged).

Mortgage bonds are bonds secured by property. They can be: remortgage; against the collateral of other securities (these securities are transferred to the bond holder in the event of non-payment of debt on the bond).

Mortgage-free - bonds without property backing. They can be:

a) revocable (can be claimed by the issuer before the maturity date); b) convertible (they can be exchanged for shares or bonds of other types); c) with a change in the repayment period (for example, with the right of early repayment); d) indexed (their nominal value increases, as a rule, by the inflation index and can be a floating interest rate, depending on the loan interest rate); e) registered (a register of bond owners is maintained; if such a bond is lost, it is renewed for a certain fee); f) to bearer (the names of the owners are not registered by the issuer, the rights of the owners are restored by the court, in the manner established by the procedural legislation of the Russian Federation; such a bond has a coupon sheet consisting of several coupons, on the basis of which interest is paid; when paying the next interest payment, the owner of the bond presents one of the coupons for payment (a coupon is a tear-off coupon on which the interest rate is printed)).

Bond income is paid in the form of interest on coupons or in the form of a discount (below par) on zero-coupon bonds. It can be with coupons and discounts at the same time. The coupon rate, that is, a predetermined percentage of the nominal value that the owner must receive, is set by the issuer per year. At the same time, the coupon rate can be paid more often (once every six months, once a quarter).

II. According to the method of payment of income, they are distinguished:

bonds with a fixed income, that is, a predetermined interest rate calculated as part of the face value of the bond;
bonds with floating interest - the income on them changes 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 either in cash or in the form of securities or property.

Bonds can be sold with an agio (premium) - an overpayment when purchasing bonds compared to the par value and a warrant - the right to purchase a certain number of company shares during a specified time at the price specified in the warrant.

Bond yield is determined by multiplying the face value by the coupon interest.

Legal regime of shares as securities

The legal regime of shares is determined by federal laws and regulations. A share is an issue-grade security that confirms the owner’s rights to participate in the management of a joint-stock company.

Share – registered paper;
Closed and open joint stock companies can issue shares;
Shares are divided into types based on different criteria.

There are preferred and ordinary shares. Each share of the second type gives equal rights to the owners. Preferred shares allow you to make decisions on the reorganization or liquidation of the company, but such shares do not give the right to vote at the general meeting.

FUTURES CONTRACTS

A futures or futures contract is a contract between a seller and a buyer that provides for the delivery of a specific good, stock or service in the future at a price fixed at the time the future is entered into. Or in simple words, a futures is a delivery contract with deferred payment.

The main goal of such instruments is to reduce risks, secure profits and guarantee delivery “here and now.”

Futures are actually divided into two types: settlement and delivery. Their fundamental difference is that when the expiration date arrives (the last day the futures are traded), no delivery occurs under settlement contracts, and the futures holder simply remains “in the money.” In the second case, the actual delivery of the basic tool occurs.

Issuers of futures, i.e. The buyers and sellers, or contracting parties, are traders on stock exchanges. And the exchange itself standardizes the contract they conclude and strictly monitors the fulfillment of duties - this is called clearing.

Futures, like any other exchange asset, have their own price and volatility, and the essence of making money is to buy cheaper and sell more expensive. When a futures contract expires, there may be several options. The parties keep their money or one of the parties makes a profit. If by the time of execution the price of the commodity rises, the buyer receives a profit, since he purchased the contract at a lower price. Accordingly, if at the time of execution the price of the commodity decreases, the seller receives a profit, since he sold the contract at a higher price, and the owner receives some loss, since the exchange pays him an amount less than for which he bought the futures contract.

Futures are very similar to options. However, it is worth remembering that they do not provide the right, but rather the obligation of the seller to sell, and the buyer to buy a certain volume of goods at a certain price in the future. The exchange acts as a guarantor of the transaction.

Mortgage participation certificate and mortgage as securities

A mortgage is a security that confirms the right of the pledge holder under the obligation and the mortgage agreement.

This document gives a number of rights to the mortgagee:

The owner has the right to receive funds according to the obligation;
The right to security over mortgaged property.

A mortgage participation certificate provides a monetary obligation without specifying the exact amount of debt. According to the law, at the time of conclusion of the contract, the amount cannot be determined.

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The concept of investment shares

An investment unit is a security that confirms the right to a share in an investment mutual fund. This document gives a number of rights to the holder:

The paper belongs to the category of registered securities.
The holder has a right to certain property;
The investment unit allows you to demand redemption of the share;
An investment share allows you to receive compensation if necessary;
The document gives the right to demand rational disposal of the share.

An investment share is a document that also gives the right to take part in meetings of the company in which the holder is entitled to a share.

BILL OF LADING

A bill of lading is a non-issued security issued by the carrier of sea cargo or his authorized representative to the owner of the cargo or his representative. A bill of lading is a transport document containing the terms of the contract of carriage by sea, certifying the fact of acceptance of the cargo for shipment, giving the right of disposal and ownership of the holder of the bill of lading to the cargo, the right of the holder of the bill of lading to possess and dispose of it.

There are bills of lading: registered, order, and bearer.

Personalized - a bill of lading drawn up in the name of a specific consignee. According to a registered bill of lading, the cargo is transferred at the port of destination to the recipient indicated in the bill of lading.
Order - a bill of lading under which the cargo is transferred either to the order (i.e., by order) of the shipper, or to the order of the consignee, or to the order of the bank, or according to the endorsement of the person whose order it was drawn up.
A bearer bill of lading is a bill of lading that is transferred in exchange for cargo by mere delivery.

Order and bearer bills of lading are negotiable. This gives the holder the right to dispose of the goods while they are in transit, or to deposit the bill of lading with the bank before the goods arrive.

For stock market speculators, a bill of lading, like a bill of exchange, has little value. Because the price of a bill of lading is determined by the value of the cargo being transported and the costs of its transportation. Miracles, in which the cost of cargo in transit can jump sharply, happen extremely rarely.

The difference between documents confirming rights to a security and a security

According to the law, it is required to distinguish the document that confirms the rights to a security from the security itself.

These concepts are not identical. The holder of securities is required to have certificates that confirm ownership of the securities, but the certificate does not replace them.

The certificate is filled out according to the form and can be issued for one or two securities. The document must contain details in accordance with the law.

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Properties of the Central Bank

Valuable documents have a number of properties:

Appealability. Paper can act as a commodity or a means of payment;
Availability. Possibility of buying and selling, legality of transactions;
Seriality. The issuance of valuable documents is carried out in parts, in batches;
Availability of standards. The security must appear in accordance with the law. Have certain information and degree of protection;
Liquidity. Demand for a product leading to quick sales;
Riskiness. The purchase of securities may result in income or loss of investment;
Guarantee of fulfillment of obligations. If contractual obligations are violated, you can go to court;
State recognition. Turnover on the territory of the country, suggesting the possibility of sale, purchase, donation, inheritance.

The given signs secure the right to acquire part of a company, a share of ownership of an organization or enterprise.

Properties such as liquidity or riskiness depend on the market situation that determines the value of the security at a given moment.