What security is a bond? Securities classification, types and functions. Standard classification of securities: detailed description
So, before talking about the types of securities, let's first give a definition of a security, which is set out in Article 142 of Chapter 7 of the Civil Code of the Russian Federation (CC RF):
A security is a document certifying, in compliance with the established form and obligatory details, property rights, the exercise or transfer of which is possible only upon its presentation. A security can only appear as a result of . The issue of securities is a sequence of actions for the placement of issue-grade securities.
Federal Law N 39-FZ "O" regulates the relations arising from the issue and circulation of equity securities, regardless of the type of issuer, as well as the features of the creation and activities of professional participants in the securities market. Depending on who issues the securities, they can be attributed to bank securities, government or corporate securities. The issue of securities cannot be carried out by individuals, but they can be holders.
Issuer - a legal entity or executive authorities or bodies that bear obligations on their own behalf to the owners of securities to exercise the rights assigned to them.
Owner - a person to whom securities belong by right of ownership or otherwise.
Types of securities
Securities existing in modern world practice are divided into two large classes:1 class - basic securities;
Class 2 - derivative securities.
Basic securities are securities based on property rights to any asset, as a rule, to goods, property, various kinds of resources, money, capital, etc.
The main securities are divided into two subgroups: primary and secondary securities.
Primary securities are based on assets that do not include the securities themselves. These are, for example, stocks, mortgages, etc.
Secondary securities are securities issued on the basis of primary securities; These are securities for the securities themselves: warrants for securities, depository, etc.
A derivative security is a non-documentary form of expressing a property right (obligation) arising in connection with a change in the price of the exchange-traded asset underlying this security. If we simplify this definition somewhat and make it less strict, then one could say that a derivative security is a security for any price asset: for the prices of goods (usually, exchange commodities: grain, meat, oil, gold, etc.) .P.); on the prices of underlying securities (usually, stock indices, bonds); on credit market prices (interest rates); on the prices of the foreign exchange market (exchange rates), etc.
Derivative securities include: futures contracts (commodity, currency, interest, index, etc.) and freely tradable. Under the type of securities we will understand such a set of them, for which all the features inherent in securities are common, the same.
There are classifications of securities and classifications of types of securities. Classification of securities is the division of securities into types according to certain characteristics that are inherent in them. Classifications of types of securities are groupings of securities of the same type; This is the division of types of securities into subspecies. In turn, subspecies can in some cases divide even further. Each lower classification is part of a higher classification. For example, a share is one of the types of securities. But the share can be ordinary and preferred. An ordinary share may be single-voted or multi-voted, with par value or without par value, etc.
A security has a certain set of features. Temporary signs: the period of existence of the security: when it was put into circulation, for what period of time or indefinitely; origin: whether a security originates from its primary basis (commodity, money) or from other securities. Spatial features: form of existence: paper, or, legally speaking, documentary form or paperless, non-documentary form; nationality: domestic or foreign security, i.e. foreign; territorial affiliation: in which region of the country the given security is issued. Market characteristics: the type of asset underlying the security, or its initial basis (commodities, money, total assets of the company, etc.); ownership order: security to bearer or to a specific person (legal, natural); release form: emission, i.е. issued in separate series, within which all securities are exactly the same in their characteristics, or non-issue (individual); form of ownership and type of issuer, i.e. the one who issues securities to the market: the state, corporations, individuals; the nature of negotiability: freely traded on the market or there are restrictions; economic essence in terms of the type of rights that a security provides; risk level: high, low, etc.; availability of income: some income is paid on the security or not; form of investment: money is invested in debt or for the acquisition of property rights. The main types of securities in terms of their economic essence are:
6. When constructing securities and other financial instruments, the issuer sets the goal that they be mutually beneficial for both the issuer and the investor.
7. The issue of securities is regulated by the legislation of the Russian Federation and consists of several stages
8. Placement of securities may be carried out by open and closed subscription.
9. The issuer may organize the issue and placement of securities independently or engage professional intermediaries - underwriters for these purposes.
10. An underwriter is a person who assumes obligations to organize the issue and place the issuer's securities
Government securities
Securities are monetary documents certifying the ownership rights or loan relations of the owner of the document in relation to the person who issued such a document (the issuer).Government securities are debt obligations of the issuer (the legal entity issuing securities - the state, most often represented by the Treasury) to the acquirer of these obligations (the holder of government securities) that the issuer undertakes to repay the securities on time and in full, pay the due interest, if any arise from the securities purchase agreement, as well as fulfill other obligations that are stipulated in the agreement. This is a source of financing the expenses of the state, territorial-administrative bodies of government, municipalities; the form of investment of funds by individuals and legal entities and the way they receive income from these investments.
Government securities may be issued by central authorities, local authorities, separated, relatively independent, government agencies, as well as organizations that enjoy state support. Therefore, individual securities issued by private legal entities may, to a certain extent, have the character of government securities, if the state guarantees the yield on them.
Securities, in general, and government securities, in particular, include monetary instruments:
Evidence of ownership or loan relationship;
defining the relationship between the person who issued these documents and their owner;
providing, as a rule, the payment of income in the form of interest, as well as the possibility of transferring monetary and other rights arising from these relations to other persons.
It is necessary to determine the purpose of government securities:
Firstly, the state uses them as a method of mobilizing the monetary savings of citizens temporarily free financial resources institutional investors (insurance companies, pension funds etc.) for funding in excess of his income.
Secondly, securities are used to regulate money circulation.
For example, in the United States, the issue of cash is carried out by the central bank - the Federal Reserve System (FRS) under acceptable security, mainly government bonds. After being placed on the primary market, government securities are circulated on the secondary market. If necessary, the Fed buys them from commercial banks. As a result of this operation, the reserves of commercial banks in the Fed are increasing. And this means that they can issue significantly larger amounts of loans to entrepreneurs. So, by changing the amount of issuance and purchase of securities and discount rates on loans, the Fed regulates money circulation.
The following securities are among the government securities accepted in world practice: government bonds, treasury bills, savings certificates.
Consider these types of securities.
A bond is a debt instrument under which a creditor provides a loan to the issuer. The issuer who issued the security undertakes to pay the owner of the bond within the agreed period of the paper and annually (until maturity) a fixed or floating interest. This means that a bond is recognized as a security that secures the holder's right to receive from the issuer within the period stipulated by it its nominal value and the percentage fixed in it of the value of the bond or other property equivalent.
Thus, a bond is a security that certifies the loan relationship between its owner (creditor) and the person who issued it (issuer, debtor) and certifies:
The fact that the owner of the paper provides funds to the issuer;
the obligation of the issuer to repay the debt after a certain time; the right of the investor to receive a certain percentage of the nominal value of the bond as a reward for the funds provided;
interest on bonds remains constant or changes slightly. Therefore, bonds are fixed income securities or hard income securities.
Bonds are issued in order to raise funds to cover the state budget and implement state projects and serve as a source of financing for budget expenditures that exceed revenues; the form of savings of funds of citizens and organizations and their receipt of income.
There are different types of bonds depending on the issuer, the method of paying income, the validity period for which they are issued, the terms of circulation and their reliability.
Government bonds are issued by the central government. As a rule, the issuer is the Ministry of Finance. The funds received are used to cover the budget deficit or finance certain. Bonds of local loans are issued by local governments.
Depending on the method of payment of income, interest, discount and convertible bonds are distinguished. Interest-bearing bonds provide for the payment of income in the form of annual interest, which is set to face value. Discount income is formed in the form of the difference between the nominal value and purchase prices. Convertible bonds do not provide for the payment of income, but for their exchange for new ones. At the same time, the nominal value of the purchased bonds increases, that is, income is generated due to the difference between the nominal value of new and previous bonds.
The bonds have a face value. It can be sold for less than face value (at a discount).
Then the person who issued it is obliged to reimburse its holder within the prescribed period of time for the nominal value. The income of the holder in this case is formed in the form of the difference between the nominal and the selling price. The bond can be sold at face value or at the market price. In this case, the person who issued the bond is obliged to reimburse its holder within the prescribed period of time for the nominal value and pay him a fixed percentage. When buying a bond at face value, the holder's income is equal to the interest received. When reselling bonds at the market price, the bond holder has an income or loss in the form of the difference between the purchase price and the sale price and income in the form of interest. In the case of a fixed interest, bonds are hard income securities.
By terms, there are term, perpetual and bonds with the right of early redemption. Term bonds are issued for fixed periods, which cannot be changed. Depending on the length of the period, they are divided into short-term (up to one to two years), medium-term (up to five years) and long-term (more than five to ten years). It should be noted that each country has its own approach to defining the terms for dividing bonds into short-term, medium-term and long-term. Perpetual bonds do not provide for the definition of the terms of their issue.
Depending on the terms of circulation, bonds are divided into two groups: with free and limited circulation, depending on the rights to their transfer from one owner to another.
By reliability, bonds are divided into secured and unsecured. Secured bonds provide guarantees for their redemption and payment of income in accordance with the established terms. Such bonds can be secured by real estate, land, etc. Government bonds, regardless of whether or not the objects and forms of their collateral are indicated, are always considered secured, since the state cannot go bankrupt and are always considered secured, since the state cannot go bankrupt and always has sufficient resources, and therefore its bonds are the standard of reliability.
Treasury bills are a type of bearer securities that are placed among the population, and indicate that their owners have contributed funds to the budget and give the right to receive financial income. The following types of treasury bills are issued: short-term (up to one year); medium-term (from 1 to 5 years); long-term (from 5 to 10 years).
Short-term treasury bills are a form of government debt, issued for a period of up to one year, as a rule, to cover the budget deficit with the payment of income in the form of a discount. Thus, short-term treasury bills are government obligations that are usually redeemed within one year from the time of their issue and are sold at a discount, i.e., at a price below the face value at which they are redeemed (either sold at par, and issued at a price above par ).
Medium-term treasury bills, treasury bills are treasury bills with maturities of one to five years, usually issued with a fixed interest payment condition.
Long-term treasury bills with a maturity of up to ten years or more; coupons are paid on them. Upon the expiration of the term, the holders of such government securities have the right to receive their value in cash or refinance into other securities. In some cases, long-term obligations may be repaid at the provisional date, i.e. several years before the official maturity date.
Savings certificate - a written certificate of the bank on the deposit of funds, which certifies the right of the depositor to receive after the expiration of the established period of the deposit and interest on it.
The term savings certificates as a security has two meanings:
Document - a certificate of a credit institution on the deposit of funds, certifying the depositor's right to receive a deposit (certificates of deposit), or a certificate of a bank on receiving money from citizens for their long-term savings (savings; certificates);
type of government bonds.
Certificates provide an opportunity to attract depositors of free funds.
The certificate holder receives income either as a percentage or as the difference between the amount payable and the purchase price of the certificate. Savings certificates are issued urgent (at a certain contractual interest for a certain period) or on demand.
Nominal certificates are not subject to circulation, and their sale (alienation) by other persons is not valid. Bearer savings certificates can be traded on the secondary market. The sale price also includes the interest accrued at the time of sale.
Demand deposit certificates give the holder the right to withdraw certain amounts upon presentation of the certificate. Term deposit certificates indicate the repayment period and the amount of interest due.
So, a government security is a form of existence of government debt, these are debt securities, the issuer of which is the state.
Government securities usually have 2 advantages over other securities:
The highest level of reliability for invested funds and, accordingly, the minimum risk of loss of fixed capital and income on it;
- preferential taxation in comparison with other securities or areas of capital investment. Often there are no taxes on government securities on transactions with them and on income received.
The government issues a wide range of maturities from Treasury bills with a term of 3 months to bonds with a term of 30 years.
By issuing government securities into circulation, the following main tasks are solved: financing on a non-inflationary basis, i.e. without additional issuance of money into circulation; financing of targeted state programs in the field of housing construction, etc.
Bank securities
Banks operate in the securities market as financial intermediaries and professional participants.As financial intermediaries, banks acquire securities in order to generate income from them or manage other companies when acquiring a controlling stake in these companies, and also carry out their own issues of securities in order to obtain additional own funds.
As professional participants, banks carry out brokerage and dealer activities; activity on placement and management of securities; depository activities. The procedure and conditions for carrying out professional activities in the securities market are currently established by the federal law “On the Securities Market” and regulated by the “Regulations on the Procedure for Licensing Various Types of Professional Activities in the Securities Market of the Russian Federation”, approved by Resolution No. 26 of the Federal Securities Market of Russia.
In most countries, banks play the most important, key role in the securities market. In general, it can be represented as follows:
Through the mediation of subsidiaries
Speculative transactions
Operations aimed at forming authorized capital jar
Operations with currency futures
Acquisition of shares of privatized enterprises
Active Operations
Issue of ordinary shares
On behalf of clients
Acquisition of shares in commercial structures
With government securities
Emission preferred shares
Operations with government securities
Acquisition of shares of commercial banks
With private securities
Operations with private securities
Passive Operations
Operations for servicing customer emissions
Issue of deposit and savings certificates
Depository activity
Issue of bills
Bond issue
Banks of the Russian Federation carry out issuing activities. Under Russian law, banks can issue shares, bonds, certificates of deposit and savings, bills of exchange, and derivative securities.
Issue of shares and bonds
Based on the issue of shares and bonds, the bank's own, borrowed capital is formed. Among bank shares, ordinary shares are the most common. Preferred shares are issued less frequently. The Civil Code of the Russian Federation (Article 102, paragraph 4) imposes restrictions on the issue of preferred shares, the share of which in the total volume should not exceed 25%. Bank bonds are even less popular than preferred shares, although in world practice, bank bonds occupy a significant place on.
Banks, issuing their own shares and bonds, must be guided by the instruction of the Central Bank of the Russian Federation No. 8 “On the rules for issuing and registering securities commercial banks on the territory of the Russian Federation.
The instruction regulates the issue of securities, which a joint-stock bank can carry out in 3 cases:
at its establishment;
when increasing the size of the initial authorized capital of the bank by issuing shares;
when a bank raises borrowed capital by issuing bonds or other debt obligations.
The current regulatory documents provide that when a joint-stock bank is established, as well as when it is transformed from a share into a joint-stock bank, all shares of the first issue are distributed among the founders of the bank. Moreover, the first issue of bank shares must consist of ordinary registered shares.
In the event that simultaneously with the transformation of the bank from a share into a joint-stock bank, the authorized capital of the bank is increased, its growth can occur exclusively at the expense of additional contributions from the founders.
The re-issue of shares in order to increase the authorized capital of a joint-stock bank is permitted only after the shareholders have paid for all previously issued shares. It may contain both ordinary and preferred shares.
Preference shares of the same type provide their owners with the same amount of rights and have the same nominal value. Owners of preference shares participate in the general meeting and have the right to vote: when deciding on and liquidating the company; when deciding on amendments to the charter of the company. Placement of re-issued shares can be carried out by subscription (open or closed), by distribution among the shareholders of the company and by conversion.
Closed subscription for shares is allowed if 2 conditions are met simultaneously:
The number of previously known buyers is not more than 500 persons;
the total volume of the issue is not more than 50 thousand minimum wages as of the date of the decision.
The registration of an additional issue of shares must be accompanied by the registration of an issue prospectus.
The minimum size of the bank's authorized capital required for registration is set from 1.01.97.3 million ECU, and by 1999 should be increased to 5 million ECU.
The issue of bonds by a bank to attract borrowed funds can be carried out only on condition of full payment of all shares issued by this bank (if the bank is joint-stock) or full payment to the shareholders of their shares in the authorized fund (if the bank is a share) and for an amount not exceeding the bank's own capital.
Let's take a closer look at the stages of emission.
The decision to issue securities is made either by the general meeting of shareholders or by the Bank's Supervisory Board. In order to be eligible to issue securities, a bank must: break even during the last 3 completed financial years; not be subject to sanctions by state bodies for violation of the current legislation for 3 years; not have overdue debts to creditors and payments to the budget. All data confirming the bank's compliance with these requirements must be contained in the issue prospectus. Also, the prospectus should contain information about the bank, its financial position and information about the forthcoming issue of securities. The issue prospectus is prepared by the Board of the bank, signed by the Chairman of the Board and the Chief Accountant of the bank. For the first issue of shares of a bank being founded for the first time, the issue prospectus is prepared by its founders and signed by the members of the bank organization body appointed by the founders.
Registration of the issue of emissive securities.
To register the issue of securities, the issuing bank submits to the Department for Control over Activities credit organizations on the financial markets of the Bank of Russia or to the territorial branch of the Bank of Russia at its location, the following documents:
Application for registration;
- an extract from the minutes of the meeting of shareholders, in which the decision was made to issue securities;
- issue prospectus;
- a document confirming the approval of this issue with the relevant institution of the State Committee of the Russian Federation for antitrust policy and support for new economic structures (for banks, the authorized capital of which is more than 500 million rubles).
- a copy of the payment order on the payment of tax on transactions with securities.
The documents provided by the bank are considered by the registering authority for compliance with the current legislation, banking rules and instructions. Registered documents and a letter of registration are signed by an authorized person, certified by the seal of the registering authority and issued to the issuing bank. Together with the registered documents, the bank is sent a letter to the Settlement and Cash Center of the Central Bank of the Russian Federation at the place of the main one about opening a special savings account for it to collect funds received as payment for securities.
If the registration of securities was accompanied by the registration of the prospectus, the issuing bank publishes the prospectus by issuing the prospectus in the form of a separate brochure. At the same time, the bank informs through the mass media about the issue of securities carried out by it.
Placement of emissive securities - i.e. alienation to their first owners by concluding civil transactions. The placement of issued securities begins after the registration and publication of the issue prospectus. It can be carried out different ways:
The sale of shares can take place by selling shares for rubles. For this purpose, the buyer concludes a contract of sale for a certain number of shares. Here, the issuing bank can use the services of intermediaries - financial brokers, with whom special orders or orders are also concluded.
Shares may be paid for by contributions from shareholders to the capital of the bank material values, intangible assets, foreign exchange. At the same time, only those assets that can be used in the direct activities of the bank should be accepted as payment for the authorized capital. Their share in the structure of the authorized capital should not exceed 20 percent at the time of the bank's establishment. Subsequently, it should be increased to 10 percent (excluding the cost of buildings).
It is possible to sell shares by re-issuing previously contributed shares into shares - when the bank is transformed from a share into a joint-stock bank.
The sale of shares can be carried out by replacing them with securities previously issued by the bank, as well as by consolidating and splitting shares.
Regardless of the type of sale, the price of all shares within each type in one issue when they are sold to the first owners must be the same, incl. when selling these shares through intermediaries.
Bonds can be sold in two ways:
When selling on the basis of an agreement with buyers.
- When replacing with convertible bonds or other securities previously issued by the bank.
The number of shares and bonds actually sold by the bank should not exceed their number expected to be issued and specified in the registration documents of the issue. With regard to shares, there is a rule according to which their issue can be recognized as completed only if the actually paid increase in the authorized capital of the bank is at least 50 percent of the amount of the increase in the authorized fund that was supposed at the beginning of the issue.
Registration of the results of the issue takes place after the completion of the process of sale of securities. The issuing bank analyzes the results and draws up a report on the results of the issue, which is signed by the Chairman of the Board of the bank and submitted to the registration authority.
The report on the results of the issue of emissive securities must contain the following information:
Dates of beginning and end of placement of securities;
- number of placed securities;
- the actual placement price of securities (by types of securities within the given issue);
- total amount of proceeds for placed securities.
The registering body considers the report on the results of the issue of emissive securities within 2 weeks and, in the absence of violations related to the issue of securities, registers it. Publication of the results of the issue of securities must be carried out by the issuing bank in the same publication where the message about the issue was published.
Banks, the registration of the issue of securities of which was accompanied by the registration of the issue prospectus annually within 2 weeks after the annual general meeting of shareholders, submit to the registering authority a report containing data on the bank, its financial position, as well as information on the shares and bonds issued by the bank , information on other types of securities issued by the bank.
During the initial placement of shares, the issuing bank does not have the right to purchase them at its own expense, while in the secondary market, banks can act as their own shares, but in cases strictly prescribed by law. Many joint-stock banks, in order to maintain the market price of their own shares, are highly active in the secondary market of their own shares. Market price - the rate is determined by the formula:
Ka \u003d Kr / Nn * 100,
where Ka is the market rate
Kr - market price
Нн - nominal price
For example: The rate of a share sold at a price of 15,000 rubles, with a par value of 10,000 rubles. (Ka=15000/10000*100=150%) equals 150. The market price of shares is determined by the ratio of supply and demand.
It is known that the market share price reflects the position of the bank in the market, its stability and profitability. The depreciation serves as a signal of emerging unfavorable trends in the development of this bank and can provoke not only the dumping of its shares by shareholders, but also a massive outflow of deposits from the bank, which will have a detrimental effect on it. Therefore, in the event of a decrease in the share price, banks not directly, but through investment companies they actively buy them in the secondary market, which leads to an artificial increase in their exchange rate and creates the appearance of strengthening the bank's market positions.
After the announcement of the decisions of the Government of the Russian Federation and the Bank of Russia, the parameters of all sectors of the financial market changed dramatically. Under these conditions, the Bank of Russia offered the market its own short-term zero-coupon bonds - OBR. These bonds are of a short-term nature, the circulation period is up to 3 months, the maximum issue volume is 10 billion rubles. Currently, the bond market of the Bank of Russia is in the process of formation. Market participants' interest in these bonds is constantly growing. By mid-November, 9 OBR issues were placed, incl. 4 issues at auctions and 5 issues at secondary auctions. 5 issues have been redeemed, 4 issues are in circulation with a total volume of about 2.4 billion rubles. at face value.
The daily volume of trading in these bonds is about 100 million rubles. The profitability of OBR in the secondary market in September-October was about 70 per annum, and by mid-November they fell to 35 percent. OBRs are one of the few liquid, reliable and relatively profitable instruments on the Russian financial market.
Issue of bills
Russian banks are actively mastering the issuance of promissory notes as short-term debt obligations. It should be noted that although the issue of promissory notes is an issue operation, the promissory notes themselves are issued without registration of an issue prospectus, therefore, this operation can be rightfully characterized as an issue of promissory notes. Banks use the issuance of bills of exchange mainly in order to raise funds for the active operations of the bank at the lowest possible cost and with the lowest compared to using traditional credit and deposit forms of investment. The reduction of overhead costs is achieved due to the fact that, performing the same function as a certificate of deposit, the bill has a simplified issuance procedure - there is no registration procedure with the Bank of Russia. The current rules require only notification of the Main Territorial Administration of the Central Bank of the Russian Federation about the issuance of bills by the bank. At the same time, the current bill of exchange legislation allows issuers the opportunity to independently establish the rules for issuing bills that do not contradict this legislation, which makes bills the most attractive for banks. Banks can issue bills of exchange both in series and in a one-time order. The attractiveness of a single bill is that the conditions for its issuance and circulation can be determined taking into account the interests of a particular depositor. Banks give a clear preference to the serial issue of bills, since in this case it is possible to attract a large number of investors and a significant amount of resources.
When raising funds by issuing promissory notes, banks must deduct a certain percentage of their amount to the mandatory reserve fund of the Central Bank of the Russian Federation (currently this percentage is 7%). Thus, by issuing an interest-bearing bill, the bank immediately receives at its disposal an amount equivalent to the face value of the bill, from which the reservation is made. When issuing a discount bill, the bank receives an amount less than face value, but is obliged to make a reservation from the full amount of its obligation.
Issue of deposit and savings certificates
The issue of deposit and savings certificates can be carried out exclusively by banking institutions, pursuing the following goals:
Attraction of deposit resources for active operations. This is achieved through:
Advantages in taxation;
- ensuring the liquidity of investments.
Russian banks establish flexible terms for certificates of deposit from 1 day to 1 year. This is due to the fact that, unlike bills, certificates of deposit can only be urgent, the maximum maturity of deposit certificates is 1 year, savings certificates - 3 years.
Minimize investment risk.
By carrying out this operation in various banks, the client can reduce the already low risk of buying certificates of deposit.
Expansion of the bank's clientele through the services provided to the client.
Reduced liquidity risk. By issuing certificates of deposit, the bank receives liabilities with a fixed term, which allows it to reduce liquidity risk.
The procedure for issuing deposit and savings certificates of commercial banks is less formalized than issuing shares and bonds.
The letter of the Central Bank of the Russian Federation No. 14-3-20 requires registration of the conditions for issuing certificates, the refusal of which by the Central Bank is possible only in case of violations of the current legislation. According to the letter, the right to issue a certificate is granted to banks under the following conditions:
Banking activities for at least 2 years;
publications (balance sheet and income statement), confirmed by an audit firm;
compliance with banking legislation and regulations of the Bank of Russia;
fulfillment of mandatory economic standards;
availability of a reserve fund in the amount of at least 15% of the actually paid authorized capital;
meeting mandatory reserve requirements.
The effectiveness of the operation, first of all, depends on how well the bank has studied the stock market and, in particular, in the sector of deposit and savings certificates. It is important to choose the right conditions and time for their issue, as well as to offer the investor an income adequate to the state of the stock market.
During the initial placement of certificates of deposit, the auction method proved to be an effective way. When it is held, the bank offers investors limits on interest rates at which certificates of deposit are offered for placement. First of all, applications for the purchase of certificates are satisfied, which indicate the best conditions from the bank's position - the minimum percentage of placement.
The secondary market may be supported by the issuing bank. In this case, he must deal with certificates, offering two-way quotes.
In the event that interest rates in the market went up, buying a certificate from an investor in the secondary market at an interest rate set by the terms of issue is unprofitable, and n is set at the level of the market value nr.
Redemption in case of falling interest rates is an effective operation for the bank, but economically unprofitable from the position of the investor. That is why certificates sell well during the period of struggle to reduce inflation, accompanied by a drop in market interest. In the same period of gradual unwinding of inflation, it is advisable for banks to abandon certificates in favor of more convenient promissory notes.
The price that the bank sets for the sale of previously redeemed certificates is determined based on the time until its redemption and those interest rates that will allow the bank to sell the certificate.
Securities accounting
A share is a registered issue security that secures the rights of its owner (shareholder) to receive a part of the profit of a joint-stock company in the form of dividends, to participate in the management of a joint-stock company and to a part of the property remaining after its liquidation. Availability and movement of investments in shares of joint-stock companies, authorized (reserve) capitals of other organizations, etc. are taken into account on the sub-account "Shares and shares" to account 58.Clause 44 of the Regulations on maintenance and in the Russian Federation establishes that, until the moment of payment, they are reflected both in (in the amount of the contractual value) and in liabilities (as a debt for unpaid amounts), and after payment, account 76 “Settlements with various debtors and creditors” is closed and financial investments remain only in the asset balance. The need to use account 76 for the preliminary accounting of the due amounts of dividends (part of the profit) is due to the observance of the assumption of temporary certainty of the facts of economic activity.
Thus, after making a decision on the acquisition of shares (or participation in the authorized capital of a limited liability company) and registration required documents in the investor's accounting for the amount of the value of shares (shares), an entry is made in the debit of account 58 in correspondence with account 76, and after payment, account 76 is debited in correspondence with account 51 "" (52 "Currency accounts").
After receipt of a notice of accrued dividends for the relevant reporting period (according to the current legislation, dividends can be accrued not only for a full year, but also for a shorter period), an entry D 76 - K 91 “Other income and expenses” should be made in accounting, and if actual receipt of dividends - D 51 - K 76.
If an organization has invested money in shares of other organizations traded on the stock exchange, the quotation of which is regularly published, then when compiling at the end of the reporting year, the value of such shares is reflected at market value(if the latter is lower than the value at which the securities were accepted for accounting or were listed at the beginning of the year).
The Instruction on the Application of the Chart of Accounts for Accounting Financial and Economic Activities of Organizations6 establishes the procedure for accounting for the formation and use of a reserve for depreciation of investments in securities using account 59 “Reserves for depreciation of financial investments”. But the correspondence of this account with account 58 “Financial investments” is not provided, it can only correspond with account 91. Thus, at market value, financial investments will be reflected only in the balance sheet, but not in accounting. In the liabilities side of the balance sheet, the amount of the reserve is not shown separately, but in the asset it is reduced by this amount in account 58.
The posting scheme for creating and using a reserve can be as follows:
D 91 - K 59 - for the amount of the created reserve (the difference between the book value of the acquired shares and their market quotations);
D 59 - K 91 - by the amount of the increase in the market value of shares during the year that has passed since the creation of the reserve (but not more than the balance of account 59 for the corresponding types of shares).
Example 1. In August, an organization purchased shares with a total value of 100,000 rubles. As of December 31 of the same year, the acquired shares were quoted at a cost of 90,000 rubles, as of December 31 of the following year - 95,000 rubles, as of December 31 of the second year after the acquisition - 105,000 rubles.
In the accounting of the organization, postings are made:
In August, when purchasing shares
D 58 - K 76 - 100,000 rubles. - reflects the contractual value of financial investments;
D 76 - K 51 - 100,000 rubles. - paid shares;
In December of the same year
D 91 - K 59 - 10,000 rubles. (100,000 rubles - - 90,000 rubles) - a reserve was created for the difference between the book value of shares and their quotations. In the balance sheet for this year, financial investments will be reflected at a cost of 90,000 rubles;
December next year
D 59 - K 91 - 5000 rubles. (95,000 rubles - - 90,000 rubles) - an increase in the value of shares is reflected. In the balance sheet, financial investments will be reflected at a cost of 95,000 rubles;
In December of the second year after the acquisition of shares
D 59 - K 91 - 5000 rubles. (10,000 rubles - - 5,000 rubles) - an increase in the value of shares is reflected. In the balance sheet, financial investments will be reflected at a cost of 100,000 rubles, since the increase in quotations of PBU 19/02 is not provided for in accounting and reporting.
Shares are a separate type of property and, accordingly, can be resold in the same way as other types of assets. If an organization is not a professional participant in the securities market, such activity is not normal for it. Therefore, transactions for the sale of shares and shares should be reflected in the entries:
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The concept of a security is multifaceted, it can be considered both from an economic point of view and from a legal one. In Art. 142 of the Civil Code of the Russian Federation, a legal definition of a security is given as a document certifying, in compliance with the established form and mandatory details, property rights, the exercise or transfer of which is possible only upon its presentation.
Table 2.1.1. Securities classification
1. In world practice, securities by origin divided into two broad classes: underlying securities and derivative securities.
Principal securities- These are securities based on property rights to any asset (goods, money, capital, property, resources, etc.).
Derivatives securities are non-documentary forms of expression of a property right (obligation) arising in connection with a change in the price of the underlying asset, i.e. the asset underlying this security. Derivatives include futures contracts and freely tradable options.
2. By release form securities can be divided into issuable (shares, bonds) and non-issuable (promissory note, check, option).
Issue security - any security, including non-documentary, which is simultaneously characterized by the following features: 1) establishes a set of property and non-property rights subject to certification, assignment and unconditional exercise in accordance with the current procedure; 2) is placed in issues; 3) has equal volumes and terms of realization of rights within one issue, regardless of the time of acquisition of securities. Non-emission security - securities issued individually or in small batches.
3. By tenure securities are divided into: registered, order and bearer. Nominal a security is a security containing information about its owner; the name of the owner is recorded on its letterhead and / or in the register of owners, which can be maintained in conventional documentary and / or electronic forms. Order a security is a security, the rights to which may belong to the person named in it; the latter itself exercises these rights or appoints another authorized person by its order. Rights under an order security are transferred by making an endorsement on this paper - an endorsement. security paper bearer is a security on which the name of its owner is not fixed. The transfer of rights to it and the exercise of the rights enshrined in it do not require the identification of the owner; the rights attached to this paper belong to the person who represents it. There is no register of their owners for bearer securities.
4. Depending on forms of existence securities are documentary and uncertified.
documentary the form of emissive securities is a form in which the owner is established on the basis of the presentation of a properly executed security certificate or, in case of depositing such, on the basis of an entry in the depo account.
Undocumented the form of issuance securities is the form in which the owner is identified on the basis of an entry in the system for maintaining the register of securities holders or, in the case of securities deposit, on the basis of an entry in the depo account. A security issued in non-documentary form exists in the form of entries on personal accounts with the registrar or on depo accounts with a depository.
5. By lifetime securities are divided into urgent and perpetual. Urgent are securities that have a fixed life. They are divided into: short-term (up to 1 year), medium-term (from 1 year to 5 years) and long-term (5–30 years). Perpetual- securities that exist forever, they are limited only by the life of the issuer.
6. Depending on goals issue securities are divided into commercial and stock. Commercial- these are securities that serve the process of commodity circulation and certain property transactions (bills, checks, mortgages, warehouse and pledge certificates, bills of lading). Stock- these are securities that are tools for the formation of monetary funds (shares, investment units).
7. Depending on forms of investment of the owner's funds securities are divided into debt and equity. Debt- These are securities that provide for the return of the amount of debt by a certain date and the payment of a certain percentage (bonds, bills). Equity- these are securities that secure the owner's rights to a part of the enterprise's property during liquidation, giving the right to receive part of the profit, information and participation in the management of the enterprise (shares).
8. By the nature of negotiability securities are distinguished: market(freely traded on the secondary market), non-market(having only the primary market) and securities limited circulation(shares of closed joint-stock companies).
9. By income securities are divided into profitable and incomeless.
10. By form of income allocate: interest(coupon) with a fixed or floating rate, interest(no coupon), discount, indexed, winning, premium securities. They can be fixed income or fluctuating income.
11. Depending on early repayment options distinguish: irrevocable securities that cannot be called back and redeemed by the issuer ahead of schedule; revocable securities - can be withdrawn and redeemed by the issuer before maturity. The revocation procedure must be provided for in the prospectus.
12. By exchange opportunities securities are convertible and non-convertible. Convertible are securities that, under certain conditions, are exchanged for other types of securities of the same issuer.
13. By economic entity. According to Art. 143 of the Civil Code of the Russian Federation, securities include: a government bond, a bond, a check, a bill of exchange, a deposit and savings certificate, a bill of lading, a share, a bank savings book to bearer, privatization securities, and other documents that are classified as securities by securities laws. A number of securities (options, warrants, housing certificates, investment shares, etc.) have been put into circulation by other legislative and regulatory acts.
Test 1. Choosing the right answer
1. The Civil Code provides the following definition of a security:
a) a document certifying, in compliance with the established form and mandatory details, property rights, the exercise or transfer of which is possible only upon its presentation; with the transfer of a security, all the rights certified by it in the aggregate pass;
b) a monetary document certifying the right of ownership or a loan relationship, defining the relationship between the person who issued this document and its owner and providing for the payment of income in the form of dividends or interest;
c) the form of existence of capital, different from its commodity, productive and monetary form, which can be transferred instead of itself, circulate on the market as a commodity and generate income.
2. Securities based on property rights to any asset are:
a) derivative securities;
b) underlying securities;
c) equity securities.
3. Non-documentary forms of expression of a property right (obligation) arising in connection with a change in the price of the underlying asset, i.e. the asset underlying this security, are:
a) derivative securities;
b) underlying securities;
c) equity securities.
4. Any security, including non-documentary, which is simultaneously characterized by the following features: 1) establishes a set of property and non-property rights subject to certification, assignment and unconditional exercise in accordance with the current procedure; 2) is placed in issues; 3) has equal volumes and terms of realization of rights within one issue, regardless of the time of acquisition of securities, is:
a) derivative securities;
b) non-issue papers;
c) equity securities.
5. Securities issued individually or in small series are:
a) derivative securities;
b) non-issue papers;
c) equity securities.
6. A security that contains information about its owner; the name of the owner is recorded on its letterhead and / or in the register of owners, which can be maintained in the usual documentary and / or electronic forms, is:
a) a registered security;
b) order;
c) bearer.
7. A security, the rights to which may belong to the person named in it, who independently exercises these rights or appoints another authorized person by his order, is:
a) a registered security;
b) order security;
c) a bearer security.
8. A security, the name of the owner of which is not directly fixed on it, the transfer of rights to it and the exercise of the rights secured by it do not require identification of the owner; the rights enshrined in this paper belong to the person who represents it, is:
a) a registered security;
b) bearer security;
c) order security.
9. The form of issue, in which the owner is established on the basis of the presentation of a properly executed security certificate or, in case of depositing such, on the basis of an entry on the depo account, is:
a) undocumented form;
b) documentary form;
c) electronic form.
10. The form of issue, in which the owner is established on the basis of an entry in the system of maintaining the register of securities holders or, in the case of securities deposit, on the basis of an entry on the depo account, is:
a) non-documentary form of issuance securities;
b) documentary form of issuance securities.
11. Securities with a fixed life are:
a) urgent securities;
b) perpetual securities;
c) equity securities.
12. Securities that exist forever, limited only by the life of the issuer, are:
a) urgent securities;
b) perpetual securities;
c) equity securities.
13. Securities that provide for the return of the amount of debt by a certain date and the payment of a certain percentage are:
a) debt securities;
b) equity securities;
c) perpetual securities.
14. Securities securing the owner's rights to a part of the enterprise's property upon liquidation, giving the right to receive part of the profit, information and participation in the management of the enterprise, are:
a) debt securities;
b) equity securities;
c) perpetual securities.
15. Securities that cannot be called back and redeemed by the issuer ahead of schedule are:
a) irrevocable securities;
b) callable securities;
c) equity securities.
16. Securities that can be called back and redeemed by the issuer before maturity are:
a) irrevocable securities;
b) callable securities;
c) debt securities.
17. Securities that, under certain conditions, are exchanged for other types of securities of the same issuer are:
a) convertible securities;
b) non-convertible securities;
c) equity securities.
18. Russian civil law:
a) establishes an exhaustive list of both basic and derivative securities;
b) admits that documents may be classified as securities by securities laws or in the manner prescribed by them;
c) establishes an exhaustive list of derivative securities.
19. Rights under an order security are transferred:
a) in the manner established for the assignment of claims (cession);
b) by making an endorsement on a security - an endorsement;
c) by delivery to another person.
20. Profitability and liquidity of a security:
a) rise and fall at the same time;
b) are interconnected in such a way that with an increase in liquidity, profitability decreases, and vice versa;
c) have no relationship.
21. According to the form of issue, securities are:
22. According to the form of investment, securities are:
a) debt and equity securities;
b) equity and non-equity securities;
c) registered, order and bearer securities.
23. By issuer, securities are:
a) government and non-government securities;
b) equity and non-equity securities;
c) registered, order and bearer securities.
24. According to the nature of negotiability, securities are:
a) debt and equity securities;
b) marketable, non-marketable and limited circulation securities;
c) registered, order and bearer securities.
25. By economic nature, securities are:
a) shares, bonds, promissory notes, bills of lading, warrants, etc.;
b) equity and non-equity securities;
c) registered, order and bearer securities.
26. According to the availability of income, securities are:
a) debt and equity securities;
b) profitable and non-profitable securities;
c) registered, order and bearer securities.
27. According to the form of income, securities are:
a) debt and equity securities;
b) equity and non-equity securities;
c) interest, discount and other securities.
28. According to the period of existence, securities are:
a) debt and equity securities;
b) equity and non-equity securities;
c) urgent and perpetual securities.
29. If early redemption is possible, securities are:
a) callable and irrevocable securities;
b) equity and non-equity securities;
c) registered, order and bearer securities.
30. Securities according to the method of transfer to another person are divided into the following types:
a) registered, order and bearer securities;
b) circulating, non-circulating, with a limited range of circulation;
c) equity and non-equity securities.
31. Convertible are those securities that can be exchanged for:
a) other securities;
b) securities and money;
c) securities, money and goods.
32. As the risks borne by the security are reduced:
a) its liquidity decreases;
b) its profitability grows;
c) its liquidity grows and profitability falls.
33. Types of securities are as follows:
a) stock, bond, bill, check, bank guarantee, mortgage, bank nominal savings book, simple warehouse certificate, mortgage, futures and forward contracts;
b) stock, bond, deposit and savings certificates, coupon, bill of lading, debt receipt, investment share, insurance policy, option and futures contracts;
c) a share, a bond, a bill of exchange, a check, a deposit and savings certificate, a bank savings book to bearer, a bill of lading, a mortgage, an investment share, a double and a simple warehouse certificate, a warrant, an issuer's option, an option and a futures contract, a depository receipt.
34. The ability of a security to generate income is:
a) profitability;
b) liquidity;
c) reliability.
35. Signs of an equity security:
a) fixes the totality of property and non-property rights; placed by issues; has an equal volume and terms of exercising rights within one issue, regardless of the time of purchase of the security;
b) establishes a set of property rights to manage the capital of the issuing company; placed by issues in non-documentary form; has an equal volume and terms of exercising rights within one issue, regardless of the time of purchase of the security;
c) fixes the totality of property rights; placed by issues; has a fixed period for the exercise of rights, regardless of the time of acquisition of the security.
36. Execution on an order security is distributed among the participants as follows:
a) the person who issued the security and all the persons who endorsed it shall be jointly and severally liable to the legal owner;
b) the person who issued the security and the payer indicated in it shall be jointly and severally liable to the legal owner;
c) the person who issued the security, and all the persons who endorsed it, bear a share liability to the legal owner.
37. Securities used for a more complete implementation of the functions of other securities are:
a) stock;
b) debt;
c) derivatives.
38. What securities issued in documentary or non-documentary form are not allowed for mandatory storage?
a) bills;
b) share certificates;
c) bonds.
39. In the case of non-documentary form of emissive securities, the owner is established:
a) on the basis of an entry in the system of maintaining the register of holders of securities or the presentation of a properly executed security certificate;
b) on the basis of an entry in the system of maintaining the register of holders of securities or, in the case of deposition of securities, an entry in the depo account;
c) on the basis of presenting a duly executed security certificate or, in case of depositing one, on the basis of an entry in the depo account.
40. If a security is placed in issues, has equal volumes and terms of exercising rights within one issue, regardless of the time of acquisition of the security, then it can be recognized as:
a) bearer;
b) monetary management;
c) emission.
1. There are the following types of securities:
a) an issuer option;
b) currency futures contract;
c) the right to a share in the charter capital of a limited liability company;
d) payment request;
d) money check;
f) depository receipt;
g) bearer bond;
h) a pledge certificate of a warehouse.
2. Russian laws containing legal norms on securities are:
a) the Civil Code;
b) On financial lease (leasing);
c) On investment funds;
d) On mortgage;
e) About investment activity in the form of capital investments;
f) On valuation activities;
g) On joint-stock companies;
h) On currency regulation and currency control.
3. Securities circulating on the Russian exchange market are:
a) a bond
b) preferred share;
c) mortgage;
d) investment share of an interval mutual investment fund;
e) currency futures contract;
f) bill of lading;
g) bill of exchange;
h) an ordinary share.
4. Securities on which an endorsement is affixed are:
a) mortgage;
b) double warehouse certificate;
c) an option contract to sell;
e) a bill;
g) currency futures contract;
h) an option contract to buy.
5. Securities serving the circulation of goods and real estate are:
a) double warehouse certificate;
b) consignment note;
c) mortgage;
d) a simple warehouse certificate;
e) bill of lading;
e) warehouse receipt;
g) commodity futures contract;
h) forward contract.
6. Only those that meet the following requirements are recognized as securities:
a) marketability;
b) availability for civil circulation;
c) standardization and serialization;
d) indefiniteness;
e) regulation and recognition by the state;
f) liquidity;
g) riskiness;
h) obligatory performance.
7. Derivatives include the following securities:
a) a currency futures contract;
b) certificate of deposit;
c) a simple warehouse certificate;
d) bank savings book to bearer;
e) issuer option;
f) preferred share;
g) depository receipt;
h) mortgage.
8. Types of equity securities are as follows:
a) investment share;
b) municipal bond;
c) mortgage;
d) government bond;
e) an ordinary share;
f) double warehouse certificate;
g) bill of lading;
h) mortgage-backed bonds.
9. Securities that can only be registered are:
a) housing certificate;
b) a bill;
c) issuer option;
d) a bond;
e) investment share;
g) a mortgage-backed bond;
h) bank savings certificate.
10. Securities issued only in documentary form are as follows:
a) a simple warehouse certificate;
b) a bill;
c) mortgage;
d) credit card;
e) personalized savings book;
g) bank savings certificate;
h) investment share.
11. Securities issued exclusively by banks are:
a) savings book to bearer;
c) mortgage;
d) certificate of deposit;
e) personalized savings book;
e) savings certificate;
g) bank guarantee;
h) credit card.
12. Debt securities are:
b) a bill of exchange;
c) warrant;
d) depository receipt;
e) certificate of deposit;
f) currency futures contract;
g) promissory note;
h) a bond.
13. Securities, settlements on which are possible only in cash, are:
a) personal bank savings book;
c) a bond;
e) a bill;
f) insurance certificate;
g) savings certificate;
h) certificate of deposit.
Test 3. Finding an alternative
Answer "Yes" or "No".
1. Civil law establishes that securities are monetary documents certifying the ownership of capital or the loan relationship of the owner of the document to the person who issued such a document?
2. According to Art. 143 of the Civil Code of the Russian Federation, securities include: a government bond, a bond, a check, a bill of exchange, a deposit and savings certificate, a bill of lading, a share, a bank savings book to bearer, privatization securities, other documents that are classified as securities by securities laws?
3. Is a security whose owner's name is recorded on its letterhead and/or in its register of owners a bearer security?
4. Is the form in which the owner is established on the basis of an entry in the system of maintaining the register of securities owners or, in the case of depositing securities, on the basis of an entry on the depo account, is this a non-documentary form of emissive securities?
5. Market characteristics include: form of ownership, form of issue, form of ownership and type of issuer, form of investment, nature of negotiability and degree of investment risk, form of payment of income, etc.?
6. Are securities such as options, housing certificates, investment shares, etc. introduced into circulation by the Civil Code?
7. Are underlying securities securities based on property rights to an asset?
8. Derivative securities are non-documentary forms of expression of a property right (obligation) arising in connection with a change in the price of the underlying asset, i.e. the asset underlying this security?
9. Is a security issued individually or in small series a non-equity security?
10. A non-issue security is simultaneously characterized by the following features: 1) fixes a set of property and non-property rights subject to certification, assignment and unconditional exercise in accordance with the current procedure; 2) is placed in issues; 3) has equal volumes and terms of realization of rights within one issue, regardless of the time of acquisition of securities?
11. Is a security on which the name of its owner is not recorded a warrant security?
12. Is a security, the rights to which may belong to the person named in it, who himself exercises these rights or appoints another authorized person by his order, is this a registered security?
13. A security that contains information about its owner; the name of the owner is recorded on its letterhead and / or in the register of owners, which can be maintained in ordinary documentary and / or electronic forms - is it a bearer security?
14. Is the form in which the owner is established on the basis of the presentation of a properly executed security certificate or, in case of depositing such, on the basis of an entry on the depo account, is this a documentary form of emissive securities?
15. Is the form in which the owner is identified on the basis of an entry in the system of maintaining the register of securities owners or, in the case of securities deposit, on the basis of an entry on the depo account, is this a documentary form of emissive securities?
16. Convertible securities are securities that, under certain conditions, are exchanged for other types of securities of the same issuer?
17. Civil law gives a legal definition of a security as a document certifying, in compliance with the established form and mandatory details, property rights, the exercise or transfer of which is possible only upon its presentation?
18. Is the form in which the owner is established on the basis of the presentation of a properly executed security certificate or, in case of depositing such, on the basis of an entry on the depo account, is this a non-documentary form of emissive securities?
19. Derivative securities are securities based on property rights to an asset?
20. Principal securities are non-documentary forms of expression of a property right (obligation) arising in connection with a change in the price of the underlying asset, i.e. the asset underlying this security?
Test 4. Definition term
2. Look in the right column for the definition of the terms in the left column.
3. Look in the right column for the definition of the terms in the left column.
2.2. Operations with securities
Operations with securities - these are actions with securities and/or funds in the stock market to achieve the set goals.
The main operations in the securities market are:
¦ issue of securities– the sequence of actions of the issuer on the placement of emissive securities established by law;
¦ placement of securities– alienation by the issuer of securities to their first owners by concluding civil law transactions;
¦ purchase and sale of securities– conclusion of civil law transactions, entailing the transfer of ownership of securities from one owner to another;
¦ registration and re-registration of securities holders– accounting of securities holders, control of changes in the composition of securities holders;
¦ conversion– a securities exchange operation leading to the acquisition of other rights and opportunities;
¦ trust– trust management of securities aimed at increasing capital by choosing the most efficient options for using securities;
¦ clearing– fulfillment of obligations for the supply of securities and settlements on them;
¦ storage– protection against theft and other causes of loss;
¦ insurance– Ensuring relative stability and, consequently, attracting additional potential investors;
¦ free delivery– realization of the right of inheritance, donation;
¦ pledge– provision of collateral for a loan;
¦ marketing– study of a certain segment of the securities market, assessment of potential investors, diagnostics of stock transactions, risk assessment, development of a strategy for promoting securities on the market;
¦ split (splitting) or crushing– increase in the number of securities;
¦ consolidation (merger)– decrease in the number of securities;
¦ accounting and auditing;
¦ accrual and payment of dividends on shares and interest on bonds;
¦ pricing– the process of setting prices taking into account existing economic conditions, current legislation and established practice;
¦ formation and management of portfolios of securities;
¦ assessment of investment risk;
¦ investment design– development financial policy, forecasting;
¦ consulting– professional assistance in the form of consultations or recommendations from highly qualified specialists in the analysis, forecasting and solving practical problems in the securities market, etc.
Test 1. Choosing the right answer
1. What applies to operations in the securities market?
c) rendit.
2. The sequence of actions of the issuer for the placement of issue-grade securities established by law is:
a) emission;
c) clearing.
3. Listing is:
a) a list of stock exchange members;
b) share price;
c) inclusion of securities in the quotation list.
4. What is the share premium of a joint-stock company?
a) the difference between the par value of a share and the price of its actual sale in the secondary market;
b) income from the sale of shares during the initial issue at prices above par;
c) income from the sale of shares, which is received by an intermediary who carries out the placement of shares on the basis of an agreement with the issuer.
5. Delisting is:
a) inclusion of securities in the quotation list;
b) exclusion of securities from the quotation list;
c) a list of stock exchange members.
6. Alienation by the issuer of securities to their first owners by concluding civil transactions is:
a) emission;
b) placement of securities;
c) clearing.
7. The conclusion of civil law transactions, entailing the transfer of ownership of securities from one owner to another, is:
a) emission;
b) appeal;
c) clearing.
8. A securities exchange operation leading to the acquisition of other rights and opportunities is:
a) conversion;
b) appeal;
c) clearing.
9. Splitting shares into a larger number of smaller denominations in order to facilitate their distribution is:
a) rendit;
c) issue.
10. The process of price setting, taking into account existing economic conditions, current legislation and established practice, is:
a) conversion;
b) pricing;
c) issue.
11. Pledge of non-documentary emissive securities:
a) impossible;
b) is possible and arises from the moment the parties sign the pledge agreement;
c) is possible and arises from the moment of registration of the fact of encumbrance by the registrar maintaining the register of holders of registered securities or by the depository.
12. Issue of securities is:
13. Placement of securities is:
b) the statutory sequence of the issuer's actions for the placement of emissive securities;
c) the conclusion of civil law transactions, entailing the transfer of ownership of securities from one owner to another.
14. Circulation of securities is:
a) alienation by the issuer of securities to their first owners by concluding civil transactions;
b) the conclusion of civil law transactions, entailing the transfer of ownership of securities from one owner to another;
c) the statutory sequence of the issuer's actions for the placement of emissive securities.
15. Conversion is:
a) alienation by the issuer of securities to their first owners by concluding civil transactions;
b) a securities exchange operation leading to the acquisition of other rights and opportunities;
c) the sequence of actions of the issuer for the placement of securities established by law.
16. Pricing is:
a) a securities exchange operation leading to the acquisition of other rights and opportunities;
b) the process of setting prices, taking into account existing economic conditions, current legislation and established practice;
c) alienation by the issuer of securities to their first owners by concluding civil transactions.
Test 2. Mismatch Elimination
1. Operations in the securities market include:
a) consolidation;
c) emission;
d) accommodation;
e) warrant;
f) bill of lading;
g) conversion;
2. Actions with securities and/or funds in the stock market to achieve the set goals are as follows:
a) issue transactions;
b) reinsurance;
c) investment operations;
e) real estate operations;
e) client transactions.
3. Credit transactions using securities are:
a) overdraft;
b) forward contract;
c) forfaiting;
G) mortgage with a mortgage;
f) commercial credit;
g) accounting credit.
Test 3. Finding an alternative
Answer "Yes" or "No".
1. Is the placement of securities an alienation by the issuer of securities to their first owners through the conclusion of civil law transactions?
2. Circulation - is it the conclusion of civil law transactions that entail the transfer of ownership of securities from one owner to another?
3. Is conversion a securities exchange operation leading to other rights and opportunities?
4. Is a split a split of shares into a larger number of smaller denominations in order to facilitate their distribution?
5. Listing - is the admission of securities to trading on the stock exchange after checking the financial position of their issuers?
6. Is consolidation a reduction in the number of securities?
7. Is pricing a process of setting a price based on existing economic conditions, applicable laws and practices?
8. Is the sequence of actions of the issuer established by law for the placement of issue-grade securities a split?
9. Can only a documentary security be pledged?
10. Delisting - is it the exclusion of securities from the quotation list?
Test 4. Definition term
1. Look in the right column for the definition of the terms in the left column.
2.3. Procedure for issue and circulation of securities
Emission securities is the sequence of actions of the issuer for the placement of emissive securities established by law.
The procedure for issuing securities includes the following steps:
1) adoption by the issuer of a decision on the placement of issue-grade securities;
2) approval of the decision on the issue (additional issue) of securities;
3) state registration of an issue (additional issue) of securities;
4) placement of securities;
5) state registration of a report on the results of an issue (additional issue) of securities.
The issue of securities is carried out in two forms:
¦ in the form closed (private) placement among a limited circle of investors, i.e. with the registration of the issue, but without a public announcement about it;
¦ in the form open (public) placement securities among a potentially unlimited circle of investors, i.e. with the registration of an issue and a prospectus for the issue of securities, involving the disclosure of information contained in the report on the results of the issue.
The issue of securities during public offering is supplemented by the following stages:
¦ preparing a prospectus for the issue of securities;
¦ registration of the issue prospectus of emissive securities;
¦ disclosure of all information contained in the prospectus;
¦ disclosure of all information contained in the report on the results of the issue.
State registration of an issue (additional issue) of emissive securities is accompanied by registration of their prospectus in the event of:
¦ if the number of founders exceeds 500 people or the nominal value of the issue among the founders exceeds 50 thousand minimum wages;
¦ distribution of shares among shareholders;
¦ conversion of shares;
¦ open subscription;
¦ closed subscription, if the number of shareholders exceeds 500 people.
The issue prospectus allows the higher financial authority to make an opinion on the legitimacy of the issue of securities and protects the interests of investors who receive comprehensive information about the company's activities.
Favorable completion of the issuance procedure means that the securities enter the securities market for their further circulation.
Appeal securities is the conclusion of civil law transactions, entailing the transfer of ownership of securities.
The most important moment in the circulation of securities is the fixation of the transfer of rights to equity securities from one of their owners to another. The procedure for the transfer of rights under securities as a result of civil law transactions depends on the order of ownership and on the form of existence of securities.
documentary form issues are certified by certificates (if the certificates are held by the owners) or by certificates and records on depo accounts in depositories (if the certificates are deposited with the depository).
Rights of holders to issuance securities non-documentary form issues are certified in the register maintenance system - by entries on personal accounts with the registrar or, in the case of registration of rights to securities with a depository, - by entries on depo accounts with depositories.
Test 1. Choosing the right answer
1. Issue of securities is:
a) conclusion of civil law transactions entailing the transfer of ownership of securities;
b) the statutory sequence of the issuer's actions for the placement of emissive securities.
2. The decision to issue securities is:
a) a document containing data sufficient to establish the scope of the rights secured by the security;
b) a document of the standard form accepted in international practice for the carriage of goods, which certifies its loading, transportation and the right to receive it.
3. The decision to issue is made and subject to registration with the bodies of the Ministry of Finance for such securities as:
a) a bill and a check;
b) shares and bonds;
c) a mortgage and a double warehouse certificate.
4. The totality of all securities of one issuer, granting the same amount of rights to their owners and having the same nominal value in cases where the existence of a nominal value is provided for by the legislation of the Russian Federation, is:
a) issuance of emissive securities;
b) a prospectus for the issue of securities;
c) issue certificate.
5. Who approves the "Decision on the issue (additional issue) of emissive securities"?
a) the board of directors or other body having the appropriate authority;
b) the general director;
6. What can be the reason for denial of state registration of an additional issue of shares of a joint-stock company?
a) the issuer has no profit;
b) the issuer has losses;
c) the issuer has a profit.
7. State registration of an issue (additional issue) of emissive securities is accompanied by registration of their prospectus in the following cases:
a) if the number of founders exceeds 500 people or the nominal value of the issue among the founders exceeds 50,000 minimum wages; distribution of shares among shareholders; share conversions; open subscription; closed subscription if the number of shareholders exceeds 500 people;
b) only with a closed subscription;
c) only with an open subscription.
8. Is it necessary to register a prospectus for issuing equity securities (shares) if the total volume of the issue exceeds 50,000 minimum wages and the issue is distributed among a previously known circle of owners in the amount of more than 500 people?
a) the issue prospectus must be registered;
b) it is not necessary to register the issue prospectus.
9. The balance sheet of the bank, drawn up at the time of the decision on the second issue of shares, contains information that the profit of the joint-stock company is zero. Determine the decision of the registering authority regarding the possibility of registering the issue of shares:
a) registration is possible;
b) registration is not possible;
c) registration is postponed until the financial performance of the joint-stock company improves.
10. State registration of issues (additional issues) of emissive securities is:
a) listing;
b) assigning a state registration number to securities;
c) quote.
11. The totality of securities placed with previously placed securities of the same issue of issuance securities is:
a) addendum;
b) additional issue of securities;
c) issuance of emissive securities.
12. The sequence of actions of the issuer for the placement of issue-grade securities established by law is:
a) emission;
c) clearing.
13. Placement of securities among a limited circle of investors, i.e. with registration of the issue, but without a public announcement about it, is:
a) closed placement;
b) open placement.
14. Circulation of securities at the auctions of stock exchanges and/or other organizers of trading on the securities market, circulation of securities by offering securities to an unlimited number of persons, including with the use of advertising, is:
a) public circulation of securities;
b) closed subscription.
15. The guarantor of the initial placement of securities of companies, which purchases them for subsequent resale to private investors and charges a certain fee for this, is:
a) avalist;
b) underwriter;
c) a shareholder.
16. The winner of the English auction is:
a) the person who offered the highest price;
b) a person who, according to the conclusion of the tender commission appointed in advance by the organizer of the auction, offered the best conditions;
c) the person who made the largest deposit within the time and in the manner specified in the notice of the auction.
17. The rights of holders to equity securities of a documentary form of issue shall be certified:
a) certificates (if the certificates are held by the holders) or certificates and records on securities accounts with depositories (if the certificates are deposited with the depository);
b) records on personal accounts with registrars;
c) all of the above.
18. The rights of owners to non-documentary issue securities are certified:
a) in the registry maintenance system - by entries on personal accounts with the registrar or, in the case of registration of rights to securities with a depository, by entries on depo accounts with depositories;
b) certificates;
c) certificates and records on depo accounts with depositories.
19. When does the right to a registered non-documentary security pass to the acquirer?
a) in the case of accounting for his rights to securities in the registry system - from the moment of making a credit entry on the personal account of the acquirer;
b) in the case of accounting of his rights to securities with the depository - from the moment of making a credit entry on the acquirer's depo account;
c) in the case of recording his rights to securities in the registry system - from the moment of making a credit entry on the personal account of the acquirer; in the case of recording his rights to securities with the depository - from the moment of making a credit entry on the acquirer's depo account.
20. When does the right to a bearer documentary security pass to the acquirer?
a) when its certificate is found with the owner - at the time of transfer of this certificate to the acquirer;
b) when storing a certificate and/or recording rights in a depository - at the time of making a credit entry on the acquirer's depo account;
c) in both of the above cases.
Test 2. Mismatch Elimination
1. The procedure for issuing securities includes the following stages:
a) adoption by the issuer of a decision on the placement of issue-grade securities;
b) approval of the decision on the issue (additional issue) of securities;
c) state registration of an issue (additional issue) of securities;
d) production of securities certificates (for the documentary form of issue);
e) state registration of a report on the results of an issue (additional issue) of securities;
f) quotation;
g) listing;
h) diversification.
2. The difference between an open sale and a closed one is:
a) obligatory registration of the issue prospectus;
b) disclosure of all information contained in the prospectus;
c) disclosure of all information contained in the report on the results of the issue;
d) production of certificates of securities;
e) adoption by the issuer of a decision on the placement of emissive securities;
f) state registration of an issue (additional issue) of securities;
g) open placement is carried out among an unlimited number of investors;
h) the placement takes place among a predetermined number of investors.
3. The issue of securities during public offering is supplemented by the following stages:
a) adoption by the issuer of a decision on the placement of issue-grade securities;
b) preparation of a prospectus for the issue of securities;
c) registration of a prospectus for the issue of equity securities;
d) disclosure of all information contained in the prospectus;
e) approval of the decision on the issue (additional issue) of securities;
f) disclosure of all information contained in the report on the results of the issue;
g) production of securities certificates (for the documentary form of issue);
h) quotation.
4. State registration of an issue (additional issue) of emissive securities is accompanied by registration of their prospectus in the event of:
a) if the number of founders exceeds 500 people or the nominal value of the issue among the founders exceeds 50,000 minimum wages;
b) if the distribution of shares is carried out among the shareholders;
c) closed subscription, if the number of shareholders is less than 500 people.
d) conversion of shares;
e) open subscription;
f) closed subscription, if the number of shareholders is less than 300 people;
g) closed subscription, if the number of shareholders exceeds 500 people;
h) if the number of founders does not exceed 500 people or the nominal value of the issue among the founders does not exceed 50,000 minimum wages.
5. There are the following ways of placing securities:
a) gratuitous transfer of a package of preferred shares to members of the labor collective by compiling a list of holders by name;
b) open subscription for securities;
c) an auction;
d) commercial competition;
e) investment auctions;
f) closed subscription;
h) tender.
Test 3. Finding an alternative
Answer "Yes" or "No".
1. Public offering of securities - is it the placement of securities by open subscription, including their placement at the auctions of stock exchanges and / or other organizers of trading on the securities market?
2. Is a tender a written offer, an offer to subscribe for securities, an auction?
3. Is a document containing data sufficient to establish the scope of rights attached to a security a decision to issue securities?
4. Is the decision to issue emissive securities approved by the board of directors or another body having the appropriate authority, and is it documented in a separate protocol?
5. State registration of issues (additional issues) of emissive securities - is it the assignment of a state registration number to securities?
6. Placement of issue-grade securities - is it the alienation of issue-grade securities by the issuer to the first owners through the conclusion of civil law transactions?
7. Is an issue of emissive securities assigned a single state number that applies to all securities of this issue?
8. Are additional issue securities not always placed on the same terms?
9. Circulation of securities - is it the conclusion of civil law transactions that entail the transfer of ownership of securities?
10. Is a decision to issue securities a document containing data sufficient to establish the scope of rights secured by a security?
11. Is the size of the share issue determined by the size of the authorized capital of the joint-stock company and its increment?
12. Is the number of issued shares calculated by dividing the value of the authorized capital or its increment by the nominal price of the share?
13. An auction is the acquisition by individuals or legal entities of securities at an open auction, when buyers are not required to fulfill any conditions?
14. Investment auctions - is the sale of blocks of shares of state and municipal enterprises, when the buyer is required to implement investment programs?
15. Is a private placement carried out among an unlimited number of investors?
16. Is the public offering carried out among a predetermined number of investors?
17. Does the commercial competition require the buyers to fulfill any conditions (preservation of the profile of the enterprise, the number of jobs, etc.)?
18. Can a subscription to securities be open or closed?
19. In its decision to issue bonds, can a joint-stock company determine the procedure for converting them into shares?
20. Is it possible that there is no need to maintain a register of shareholders of a joint-stock company?
Test 4. Definition term
1. Look in the right column for the definition of the terms in the left column.
You can invest capital in absolutely different areas of activity and objects. One of the popular ways to make a profit is such an economic category as a security. There are many types of them, so it is rather difficult to understand this issue. It is not possible to place a detailed description of each paper on just one page, therefore, only brief descriptions are presented in this material.
Definition
Let's start with the fact that a security is a kind of document that indicates the presence of a property right of its owner. One important point- obligatory and strict observance of the forms and details established by the current legal documents. A security can only appear as a result of an issue. This process is a certain sequence of actions of the issuer (these are authorities, a legal entity that bear certain obligations to the owners of these documents to ensure the rights directly assigned to them) to place these documents.
The law of the Russian Federation regulates all relations arising as a result.
Valuable paper. Classification
It should be noted that the issue under consideration has its own classification. So, allocate bonds (they can also be government), a bill, a check, certificates of deposit, as well as a variety of shares and other securities. With most of them, work is carried out by banking institutions. It should be noted that there are different classification features. For example, all securities, depending on who issued them, are divided into banking, government, and also issued by legal entities. A security is often issued on a specialized form of a standard form. It must contain the name, issue date, full name and location of the issuer, maturity date, and type of yield. As for the last point, the owner can claim interest, discount. There are also interest-free securities.
Bonds
This is another element in the issue at hand. They are a debt obligation, which is issued either by an enterprise or by the state, when they issue an internal one, entitles the owner to claim income in the form of interest.
With such a name indicates the presence of an unconditional bank to pay in due time the agreed amount to its holder.
This species is no less common than those discussed above. It contains an order to a banking institution to issue a certain amount to its owner.
Deposit certificates
They are also called savings. They certify the amount that its holder has deposited in the bank. In addition, it confirms the right of the depositor to receive the amount he has previously deposited with the established interest.
This security is issued by an enterprise whose organizational and legal form is a joint-stock company. Its owner has the right to claim a certain percentage of profit in the form of dividends. In addition, he can take part in the management, as well as receive a part that will remain in the event of its liquidation.
Finally
To date, shares are the most effective investment of funds (if we are talking about securities of large enterprises and corporations). They are quite accessible to individuals.
Securities is a document certifying, in compliance with the established form and obligatory details, property rights, the exercise or transfer of which is possible only upon its presentation.
To give a complete description of such a category as a security, it is necessary to consider main inherent properties:
- a security indicates the ownership of capital (share);
- the security reflects the loan relationship between the investor and the issuer (bond, promissory note);
- a security gives the right to receive a certain income from the issuer;
- securities in the form of shares give the right to participate in the management of a joint-stock company;
- securities give the right to receive a share in the property of the issuing enterprise upon its liquidation.
One of the essential properties of a security is its ability to serve as a subject of purchase and sale on the stock market.
Securities can be classified according to various criteria.
Issuable and non-issuable securities. Issued securities include stocks, bonds, investment shares. Their issue (as opposed to non-issue ones) must be registered with the financial authorities without fail. Another feature of them is that they are placed by issues; have equal terms and volumes of realization of rights within one issue.
Depending on the form in which the investor provides capital to the issuer and how these funds are reflected in the property complex of the enterprise, equity and debt securities are distinguished.
equity security establishes the owner's rights to a part of the enterprise's property during its liquidation, confirms the owner's participation in the formation of the authorized capital, gives the right to receive part of the profit and participate in the management of the enterprise.
Equity securities include shares, share certificates, investment shares. debt security reflects the relationship of the loan between its owner and the issuer, who undertakes to redeem it on time and pay a certain percentage. Bonds are an example of debt securities.
The classification of types of securities by major issuers is as follows:
- government securities issued by the federal government;
- municipal securities issued by local authorities;
– corporate securities issued by private businesses (mainly joint-stock companies). Depending on how the realization of the rights secured by the security is carried out, there are:
- bearer securities - the rights under this paper belong to the person who provides it;
– registered securities provide for unambiguous identification of the owner;
– order securities – the rights on them may belong to the person named in the security, who himself exercises these rights or appoints another authorized person (promissory note and check) by his order. The rights under an order security are transferred by making a transfer signature - an endorsement - on this paper. special kind securities - paper money (banknotes). These are some kind of debt. Central Bank countries.
Securities existing in modern world practice are divided into two large classes:
1 class - basic securities;
Class 2 - derivative securities.
4. Depending on the issuer:
State - securities the issuer of which is the state. Securities issued by constituent entities of the Russian Federation are currently recognized as government securities, since the state is a guarantor for these securities;
Municipal - securities issued for circulation on behalf of local governments;
Corporate - securities of enterprises of various forms of ownership.
5. Depending on the form of provision of capital to the issuer and the reflection of this capital in the property complex, enterprises distinguish:
Equity securities - fix the owner's rights to a part of the enterprise's property during its liquidation, confirm the owner's participation in the formation of the authorized capital, give the right to receive part of the profit and participate in the management of the enterprise. Equity securities include shares, the cost of which the enterprise is not obliged to return to investors.
Debt - reflect the loan relationship between their owner and the issuer, who undertakes to redeem the security on time and pay a certain percentage on it. An example of debt securities are bonds
Hybrid securities simultaneously have the properties of different types of securities. Convertible bonds are an example of such securities. By issuing convertible bonds, the company gives investors the right to exchange these bonds for a certain number of shares. An investor who has acquired a convertible bond has a debt financial instrument. At the same time, he can always turn (convert) such a debt security into a share, i.e. equity securities. Therefore, convertible bonds simultaneously have the properties of both bonds and shares. Hybrid securities also include structured financial products (structured notes), which consist of two financial instruments: bonds and futures for any asset.
6. Depending on the order of ownership and disposal, they distinguish:
Registered securities - containing the name of their owner. The transfer of rights to these securities and the exercise of the rights secured by such securities require identification of the person who has the right of ownership to these securities.
Bearer - securities "to the bearer". Do not contain the name of the owner. The transfer of rights to such securities is carried out by a simple transfer from one person to another.
Order - contain the name of the owner. The transfer of rights is carried out by making an endorsement on them - an endorsement.
7. If possible, free circulation is allocated:
tradable securities.
non-tradable securities.
Securities with limited circulation.
8. Depending on the need to register the issue of securities:
Equity securities are securities that are usually issued in large series, are placed in issues, and within each issue have equal volumes and terms for the exercise of rights, regardless of the time of acquisition of such a security. These are usually stocks and bonds.
Non-equity securities are issued individually or in small series.
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