Securities

A security is a deed embodying some kind of property right or receivable.

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Face value Public offering Bond

Something deed it is only considered a security if the given region or country complies capital market form and content requirements specified in its regulation. However, these deeds are more common these days dematerialized exist in the form Securities may also be issued, distributed and registered in a manner regulated by law. 

Debt securities are securities of its issuer they embody his debt. Typically such a security is a bond, the treasury bond, the bill of exchange and the check. These securities represent a promise that the issuer of the security will pay its debt in the future under the agreed terms.

Equity securities embody the share of ownership acquired in the enterprise and provide the investor with ownership rights. Such securities are, for example, shares, which is one of the ownership rights provided for dividends real right.

Securities embodying rights related to goods provide the owner of the security with rights over the goods. These include, for example warehouse receipt.

Securities can be grouped based on several criteria. THE yield based on are non-interest-bearing, respectively fix obsession variable interest rate securities. According to the maturity, we can talk about short, medium or long-term or no-maturity types. Depending on the type, they can be to name obsession for presentation versions. 

Examining the way of putting it on the market, we can meet public obsession closed constructions. They are keeping an eye on their secondary market on the stock exchange in listed or over-the-counter trading (OTC) current securities. Based on their appearance, there are printed or dematerialized forms.

Securities are placed on the so-called primary market. Securities already in circulation are traded on the so-called secondary market. 

Investment service providers (banks, brokerage firms) deal with the issuance, sale and registration of securities. Printed securities are registered in a securities deposit account, dematerialized securities in a securities account.

Marketable securities are borrowing as a guarantee can also serve the loans granted in this way as a lombard loan let's call it.

Last edited: August 26, 2022

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