Securities are one of methods of financing of the enterprise. The company can manufacture such securities as shares, bills, bonds, etc. These securities sell depository receipts on equity market to investors and the enterprise receives in exchange for them money for expansion of production or on development.
The basic securities are: shares, bonds, bills, checks, public bonds, deposit and savings certificates, the bill of lading, privatisation securities, bank savings-bank books to bearer etc. Work with some kinds of securities is ranked as kinds of banking services. But securities are not protected by the bank insurance. The value of securities in the financial markets constantly fluctuates.
Securities can be primary and secondary. Primary securities are based on any assets, for example manufactured shares, bills, bonds etc. - primary securities are manufactured under real property. Secondary securities are manufactured under primary securities, for example it is depository receipts, warrants etc. There is such concept as the derivative securities based on change in price of assets, such as options and futures contracts.
All over the world such securities as shares, bills, bonds are the basic tools of investment. The majority of securities is made out on the special forms containing requisites of a security (the name, date, the emitter, cost, the holder, date of maturity, the sum etc.)
Such securities as bonds are the promissory note which yield the holder the income in the form of the fixed percent from a bond value. Bonds, depending on the one who has manufactured a security can be state, municipal and commercial.
Securities, such as bills, are liabilities of bank to pay in certain term the certain sum to the holder of the bill. Bills can be used as an instrument of payment or the lien at crediting.
Such securities as shares - are manufactured by joint-stock company, fix the right to reception of a part of profit of joint-stock company in the form of dividends and also the right of sharing in management of joint-stock company. Routinely shares are divided on ordinary and exclusive. The holder of common shares has the right to vote on general meeting of shareholders, and and the holder of preference shares - has no vote.