The security. Types and brief description

Invest capital can be absolutely in different areas of activity and facilities. One of the popular directions for profit is the economic category, such as securities. Their species are many, so it is difficult to understand this issue. It is not possible to place a detailed description of each paper on one page, therefore only brief descriptions are given in this material.

Definition

To begin with, a security is a kind of document that indicates the existence of a property right of its owner. One important point is the mandatory and precise observance of the forms and requisites that are established by the current regulatory and legal documents. The security can only appear as a result of emission. This process is a certain sequence of the issuer's actions (these are authorities, legal entities that have certain obligations to the owners of these documents to secure the rights directly assigned to them) for the placement of these documents. The law of the Russian Federation regulates all relations arising as a result.

The security. Classification

It should be noted that there is a classification in this issue. So, allocate bonds (they can also be public), a bill, a check, deposit certificates, as well as various shares and other securities. Most of them are carried out by banking institutions. It should be said that there are different classification characteristics. For example, all securities, depending on who they are issued, are divided into bank, state, and also issued by legal entities. Securities are often issued on a specialized form of standard form. It should contain the name, the date of registration, the nominal value, the full name and location of the issuer, the maturity date, as well as the type of profitability. As for the last point, the owner can claim interest, a discount. There are also interest-free securities.

Bonds

This is another component element in the matter under consideration. They are a debt obligation that is issued either by the enterprise or by the state when issuing an internal loan. The bond gives the owner the right to claim income in the form of interest.

Bill of Exchange

A security with such a name indicates that there is an unconditional debt obligation of the bank to pay the agreed amount to its holder within the prescribed period.

Check

This species is no less common than those that were considered above. It contains an order to the 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 into the bank. In addition, the deposit certificate confirms the right of the depositor to receive the amount previously paid by him with a fixed interest.

Stock

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 , the shareholder can take part in the management, as well as receive a portion of the property of the enterprise, which will remain in the event of its liquidation.

Finally

At the moment, shares are the most effective investment of money (if it is a question of securities of large enterprises and corporations). They are quite accessible to private individuals.