Classification of securities

A security is a financiala document that gives the right to receive income in the future to its owner. A document confirming the rights to property that arise only upon presentation of a security. Securities may be on paper or on magnetic media. Classification of securities is carried out on different grounds. There are two major classes of securities: basic and derivative.

Derivative securities are futures or contracts and options.

The main securities are divided into two groups: primary and secondary. At the heart of primary securities are assets (stocks, bonds, bills). Secondary securities are issued on the basis of primary securities and are securities on the securities themselves (warrants, deposit receipts).

There are various signs of securities, which are the basis of their classification. According to the terms of existence, there are fixed and unlimited securities. By type of use, investment and non-investment securities are singled out. According to the form of the issue, there are emission and non-emission ones, and state and non-state securities are distinguished by the form of ownership. In addition, there are risky and risk-free securities, profitable and unprofitable, equity and debt, domestic and foreign.

Any security legally confirms the owner's material rights. Each holder of securities knows what is concept and classification of securities. The forms are carefully protected from forgery, paper and paint have several degrees of protection.

The most widespreadgovernment bonds, shares, bills of exchange, checks, savings and deposit certificates, bills of lading. Shares are simple, nominal, preferred and bearer. Classification of securities in the form of shares is divided into registered, with participationand to the bearer with orders and floating dividends. Shares can be placed and announced. All shares have a nominal price and a market or exchange value. The share is a share security, which gives the right to receive dividends and for part of the property when the company is liquidated.

The bond is a debt valuableThe paper, which regulates the relationship between the lender and the borrower. Very often bonds are issued by the state, but can be issued by enterprises and various organizations. Classification of securities - bonds include, in turn, notes,Treasury bills, treasury bills or certificates. But the bonds are issued only for a certain period, with a mandatory return. Bonds may be renewable, deferred, convertible, indexed, mortgage, with a redemption fund, trust trust, registered and coupon, freely negotiable and with limited circulation, interest-bearing and interest-free. Bonds always bring in income.

A bill is a promissory note that is issued to the creditor and gives him the right to demand the amount of money indicated in the bill after the time has elapsed.

Checks are registered, order, bearer, monetary, settlement, and privatization. The payer of the check is always the bank that issued the check.

Classification of securities, such as bank certificates, is divided intotype of depositor to depository, which is used only by a legal entity and savings, used by the population. All certificates are fixed-term securities, issued for a period of one to three years. To all forms of securities there are certain requirements, depending on their denomination, maturity and type.