What are securities and how to handle them

Miroslava Mikhalchuk
24.11.2015

What are securities and how to handle them?

When they talk about investments, they are always mentionedsecurities. What do they represent and how are they in our country? Is it only stocks and bills?

What are securities?

A valuable paper is a document stipulating the right to property. At the same time, it is also property and property. It can be sold, bought. There are several types of securities. These include:

  • Shares;
  • Bonds;
  • Promissory notes;
  • Bank certificates.

Documents

The latter include various checks, certificates of deposit, bills of lading and warrants.

You can also highlight derivative securities. These are all sorts of swaps, futures contracts, options, forward contracts. The one who knows in practice what Forex is and what types of papers work on it knows more about this.

Types of securities

Basic securities are those that are based on property rights: to a house, steamer, yacht, cottage, land, and so on.It can also be of various types of resources that are subject to capitalization. For ease of use and classification, experts divide them into two powerful subgroups: primary and secondary.

What are primary securities? They are primarily based on assets. These include already mentioned stocks, bills, mortgage notes, as well as bonds and other documents. Secondary ones are issued on the basis of primary securities: depositary receipts, warrants (the price of which reflects the value of the shares, bonds and other things in its asset).

Characteristics of securities

Regardless of belonging to different types of all securities have different characteristics. They can be term and perpetual, state and non-state, nominal, bearer, order - managed by a specified person. They may differ in their affiliation with a particular state, in physical form, treatment order, risk level, form of issue (emission and non-issuance).

Promissory notes

The bill was considered a promissory note and appeared as a document facilitating trade.In the bill is fixed promissory note of the buyer. According to the bill to pay the amount of the loan and the percentage.

The owner of the bill can sell it to a third party, the reception often such a sale is accompanied by discounts.

Bill of exchange

These securities were also once the equivalent of a currency. Today it is already impossible.

Promotions

Shares appeared during the colonization of new lands. They represented shares or, in modern interpretation, shares in business. At the moment, the state has begun to regulate the stock market in order to reduce the risk of fraud.

Bonds

They appeared together with shares and represent securities similar to debt obligations. They are issued for a specific period. Very often, bonds are issued by the state to cover their expenses. Now they are issued by the company.

Bond

Bonds have face value and profit. The profit from bonds is higher than from deposits. The owner of the bond can sell it ahead of time at the exchange.

Derivative securities - derivatives

Derivatives serve to reduce risks. Such securities were demanded by agricultural enterprises and other organizations operating in unstable markets.However, fluctuations in them often led to the collapse of these contracts and options and now, basically, these securities are used in the currency markets.

In the world of investment is constantly developing. Therefore, the essence of securities changes over the years. They are adapting to new realities.

Quotes

What is a quotation in the context of such an economic concept assecurities? The word comes from the English term Financial quote - that is, the interest rate or rate. They refer to a product that is declared on the stock exchange (auction) by the seller or another party - the buyer. It is for a particular quote that one or the other is willing to sell or buy this product.

Quotes on the market

This stock price can change very quickly, and both participants in the transaction react to these changes with lightning speed. There are cases when the price of a deal that has just been concluded is called a quote. This distinguishes it from the situation when this term refers to the bid price or the demand for a product (service).

The prices of such papers on stock exchanges are recorded by the commission, or it is also called the quotation committee. Officially, the public availability of published prices for quotes at the start of the exchange session and its closure.The minimum and maximum price of a business day is also published. From this data it is possible to understand what the market situation is, how supply and demand correlate with each other. How much increase in the value of securities.


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  • What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them

    What are securities and how to handle them