Issue of securities - features and patterns

Consider such a matter as the issue of securities, as well as their standards. The concept of "issue" was heard by everyone, this is the issue of an additional or a new set of securities or money. The issue of securities means the appearance on the market of a large number of bonds, as well as shares, as well as certificates issued by organizations and holdings, and, in addition, enterprises or the state and its bodies. This process is focused on a one-time mobilization of funds needed to solve important tasks.

Sometimes financial institutions do not have enough funds. There are two options - to take a loan or issue securities. In the first case it is necessary to pay interest, and in the second - to receive interest. If debt securities are issued, such as bonds, then the value of securities is estimated based on the amount of interest on them. When additional shares are ordered, there is an increase in the authorized capital of the organization.

The standards for the issue of securities include certain rules and stages. Before the start of the release is the so-called preparatory stage. It employs economic analysts who must analyze supply and demand, market prices, the volume of issuance of new securities and the place where they are most conveniently located. Without this stage, the issue of securities will not bring the expected results. After carrying out all calculations, the issuer orders the printing of valuable forms in the required quantity.

Further, the issuer needs to place securities conveniently. To do this, he pre-issues, or immediately after the release, a subscription to the securities, which can be closed and open. The issue of securities can lead to their conversion to other securities, at a price set in the contract between issuers. There is another option - the distribution of securities issued to a pre-specified number of people. This is possible if the issuer is transformed into a joint-stock company, or when shares are distributed among already existing shareholders.

The issue of securities may be bearer and registered, uncertificated or in documentary form. In any case, the purchase of securities is an investment that will yield interest or dividends. It is only an experienced market participant who can choose the right paper on the stock exchange, otherwise the purchase can lead to loss of money and, conversely, to an increase in the state several times.

It is necessary to distinguish securities, they all have their own characteristics. Consider the example of bonds and shares.

Bonds give their holders the following right: to receive interest from the issuer provided all the rules and duties are observed. There are the following types: with a one-time profit and income divided into several parts. Bonds are issued for a certain period, for example, several months, after which they are returned to the issuer.

Shares have a slightly different principle. By purchasing this security, its buyer is entitled to receive dividends during the period of ownership, as well as to take part in managing and making decisions related to business development. The purchase of ordinary shares implies only the receipt of income. When acquiring preferred shares, their owner becomes a member of the management of the issuer's organization.

Knowing well and knowing the features of securities issue, you can skilfully rotate in the market, making a purchase and sale on favorable terms. Many successful people started with the purchase of a simple security, and won the operation on this operation. On the exchange there are special employees who can make transactions for you. In any case, you will find, not lose. What will outweigh, it's up to you.