Issue of securities - features and patterns
Consider such a matter as the issue of securities,as well as their standards. The notion of "issue" was heard by everyone, this is the issue of an additional or a new set of securities or money. Issue of securities means the appearance on the market of a large number of bonds, as well as shares, as well as certificates issued by organizations and holdings, and, in addition, enterprises or the state and its bodies. This process is focused on a one-time mobilization of funds needed to solve important problems.
Sometimes financial institutions do not have enough funds. There are two options - to take out a loan or issue securities. In the first case, you will have to pay interest, and in the second - to receive interest. If debt securities are issued, such as bonds, then the value of securities is based on the amount of interest on them. When additional shares are ordered, there is an increase in the authorized capital of the organization.
The standards for the issue of securities includecertain rules and stages. Before the start of the release, the so-called preparatory stage takes place. It employs economic analysts who must analyze the supply and demand, market prices, the volume of new securities and the places where they are most conveniently located. Without this stage, the issue of securities will not bring the expected results. After carrying out all calculations, the issuer orders the printing of valuable forms in the required quantity.
Next, the issuer needs to locatesecurities. To do this, he pre-issues, or immediately after the issue, a subscription to securities, which can be closed and open. The issue of securities can lead to their conversion to other securities, at a price set in the contract between issuers. There is also another option - the distribution of issued securities among a previously specified number of people. This is possible if the issuer is transformed into a joint-stock company, or when shares are distributed among already existing shareholders.
The issue of securities may be bearerand registered, uncertificated or in documentary form. In any case, the purchase of securities is an investment that will yield interest or dividends. Only an experienced market participant can choose the right paper on the stock exchange, otherwise the purchase can lead to loss of money and, conversely, to an increase in the state several times.
It is necessary to distinguish securities, they all have their own characteristics. Consider the example of bonds and shares.
Bonds give their holders the following rights: receive interest from the issuer provided all the rules and duties are observed. There are the following types: with a one-time profit and income divided into several parts. Bonds are issued for a certain period, for example, several months, after which they are returned to the issuer.
Shares have a slightly different principle. By purchasing this security, its buyer is entitled to receive dividends during the period of ownership, as well as to take part in managing and making decisions related to business development. The purchase of ordinary shares implies only the receipt of income. When acquiring preferred shares, their owner becomes a member of the management of the issuer's organization.
Well understanding and knowing the features of the emission of valuablesecurities, you can skilfully rotate in the market, making a purchase and sale on favorable terms. Many successful people began with the purchase of a simple security, and won the operation on this operation. At the exchange there are special employees who can make transactions for you. In any case, you will find, not lose. What will outweigh, you decide.