Security paper. Securities A required property of a security is an achievement
Security is a document certifying, in compliance with the established form and mandatory details, property rights, the exercise or transfer of which is possible only upon presentation.
Types of Securities
The Civil Code of the Russian Federation lists specific types of documents that relate to securities:
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bearer bank savings book;
bill of lading;
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privatization securities;
warehouse certificate as part of a double certificate;
security certificate (warrant) as part of a double certificate;
simple warehouse certificate;
mortgage;
other documents that are classified as securities by the laws on securities or in the manner established by them
government bond;
bond;
Securities Properties
Securities have the following properties:
Circulation - the ability of securities to be bought and sold in the market, and in many cases to act as an independent payment instrument.
Accessibility for civil circulation - the ability of a security to be the subject of other civil transactions.
Standard and serial.
Documentation a security is always a document, and as a document it should contain all the required details prescribed by law.
Regulability and state recognition.
Market - securities are inextricably linked with the relevant market, are its reflection.
Liquidity - the ability of a security to be quickly sold and converted into cash.
Risk - the possibility of losses associated with investments in securities and inevitably inherent in them.
Mandatory performance.
Profitability - characterizes the degree of realization of the right to income by the owner of the security.
Securities Functions
Securities perform a number of essential functions:
Securities characterize the state of the economy. Stable securities prices usually indicate a good economic situation.
Securities play an important role in the redistribution of capital between different sectors of the economy. That is, securities perform a redistributive function.
Securities are used to accumulate temporarily free monetary savings of citizens. That is, securities perform a mobilizing function.
Securities are used to regulate monetary circulation. That is, securities perform a regulatory function.
Banks, enterprises and organizations use securities as a universal credit and settlement instrument. That is, in this case, the securities perform the settlement function.
Classification of Securities
Classification of securities is their division into types according to certain characteristics that are inherent in them. In turn, species can in some cases be divided into subspecies, and they can go even further.
Securities can be classified according to the following criteria:
1. By the term of existence: urgent (short-term, medium-term, long-term and revocable) and unlimited.
Securities issued for the entire life of a person and not directly related to any time period are considered perpetual securities. Such termless securities usually include stocks.
Securities that have a term of existence established upon their issue or the procedure for establishing this period shall be deemed derivatives. Usually derivatives are divided into three subspecies:
short-term securities with a maturity of up to 1 year;
medium-term securities with a maturity of 1 year to 5 years;
long-term securities with a maturity of 5 to 30 years (mortgage-backed securities under the law can be issued with a maturity of up to 40 years).
2. According to the form of existence: paper (documentary) or paperless (paperless).
The classical form of existence of a security is a paper form in which a security exists in the form of a document. At the same time, with the active development of the securities market, many types of securities, primarily equity securities, are issued in non-documentary form.
3. By ownership: bearer (bearer securities) and registered, which contain the name of its owner and are registered in the register of owners of this security.
A representative security does not record the name of its owner, and its circulation is carried out by simple transfer from one person to another. A registered security contains the name of its owner and, in addition, is registered in a special register. Usually, a registered security is transferred by agreement of the parties.
4. According to the form of appeal (transfer procedure): transferred by agreement of the parties (by delivery, by assignment) or warrant (transmitted by order of the owner - endorsement).
If a registered security is transferred to another person by making a transfer inscription on it (endorsement), or by order of its owner, then such a security is called an order security.
5. According to the form of issue: equity or non-equity securities.
Equity securities are usually issued in large batches, which are subject to mandatory state registration. Equity securities usually include stocks and bonds.
Non-equity securities are issued without any state registration.
6. By registrability: registered (state registration or registration of the Central Bank of the Russian Federation) and unregistered.
The issue of securities may or may not be accompanied by their mandatory registration with government bodies. Typically, issue-grade securities are subject to state registration, since their issue affects the interests of a large number of market participants. Under Russian law, issued shares, bonds, bank certificates (registered by the Central Bank) and mortgages are subject to registration. Other types of Russian securities, regardless of the size of their issue, are not subject to state registration.
7. By nationality: Russian or foreign.
8. By type of issuer: government securities (these are usually various types of bonds issued by the state), corporate or corporate (these are securities that are issued by companies, banks, organizations and even private individuals).
9. By circulation: market (freely tradable), nonmarket, which are issued by the issuer and can only be returned to him (cannot be resold).
The main types of securities are marketable, that is, securities can be freely sold and bought in the market. However, in some cases, the circulation of securities may be limited, and the security cannot be sold to anyone except the one who issued it, and strictly after the agreed time. Such papers are called non-market.
10. For the purpose of use: investment (the goal is to generate income) or non-investment (they serve the turnover in the commodity markets).
11. By level of risk: risk-free or risky (low-risk, medium-risk or high-risk).
Risk-free securities are securities for which there is practically no risk. In world practice, these are short-term (1-3 months) government debt obligations (treasury bills). All other securities by risk level are usually divided into low-risk (these are usually government securities), medium-risk (these are usually corporate bonds) and high-risk (these are usually stocks).
12. According to the availability of accrued income: non-profit or profitable (interest, dividend, discount).
From the point of view of accrued income, securities are usually profitable, but they can also be non-profitable when for their owner they have a simple certificate for goods or money, not capital. Income from a security may be accrued in the form of a dividend (stock), interest (debt securities) or discount, i.e., the difference between the face value of the security and the lower purchase price.
13. At face value: constant or variable.
Under Russian law, each security has its own face value or face value. However, in world practice it is permitted to issue, for example, shares without a nominal value or with a zero nominal value. In this case, it indicates what share in the authorized capital one share is, and therefore its par value, calculated by dividing the authorized capital by the number of shares, changes each time the size of this capital changes, and does not remain unchanged as in the case when the par value of the security is set at its release. If a security is issued with an indication of the face value, then such a security is considered a security with a constant face value. If a security is issued without a cash face value (with a zero face value), then such a security is considered a security with a variable face value.
14. According to the form of raising capital: equity (reflect a share in the authorized capital of the company) and debt, which are a form of a loan of capital (cash).
Securities Accounting Book
All securities held by the organization must be described in the securities book.
The securities account book must have the following required details: name of the issuer; nominal price of a security; purchase value; number, series, etc .; total amount; date of purchase; date of sale. The book of securities accounting should be stitched, sealed with the seal of the organization and signatures of the head and chief accountant, the pages are numbered. Corrections to the book of securities accounting can be made only with the permission of the head and chief accountant indicating the date of correction.
In the case of maintaining a book of securities accounting using computer technology, the resulting information can be generated as an output document on computer-readable media. The printing of information from computer-readable media is carried out as necessary or at the request of authorities exercising control in accordance with the legislation of the Russian Federation, the court and the prosecutor's office, but at least once a year.
In accordance with the Federal Law "On Accounting", the head of the organization is responsible for organizing the storage of the securities book.
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Security: Accountant Details
- Inability to pay personal income tax on income received from the sale of securities
Individuals arising from the sale of securities. I quote: “For the purposes of this ... Russian Federation, shares or other securities ...”. Pay attention to the term ... individuals arising from the sale of securities. I quote: “For the purposes of this ... Russian Federation, shares or other securities ...”. Pay attention to the term ... income of an individual from the sale of securities, and an individual by sale, ... of the Russian Federation, income from the sale of securities by individuals was not subject to taxation ...
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From the form of registration of borrowing, including securities on debt instruments. This norm ... when a bill was an object of property (security) received by a taxpayer (its legal predecessors) at ... determined on the basis of the acquisition price of securities (paragraph 3 of Article 280 of the Tax Code ... of determining the tax base for disposal of securities a taxpayer may be accepted, including ... the price of the purchase of securities by his legal predecessor.Definition from 26 ...
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... - on operations with securities circulating on the organized securities market; 202 - for operations ... from operations with securities not traded on the organized securities market; c) 220 ... not traded on the organized securities market. Income in the form of dividends. Small ... percent on state and municipal securities ”sheet 03; code 8 - in ...
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272 of the Tax Code of the Russian Federation. Operations with securities Features of determining the tax base for ... operations with securities are established in Art. 280 ... in the case of a transaction with circulating securities through a Russian or foreign organizer ... a corresponding transaction with a security was concluded; 2) for tax purposes ... (acquisition) or other disposal of securities. From 01.01.2020 pp ... of the sale (acquisition) or other disposal of securities, determined in accordance with the procedure provided for ...
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When selling property (with the exception of securities) received free of charge or ... by tax agents. Contracts for the sale of securities According to the amendments made to cl ... contracts for the sale of securities (exchange) of securities concluded by them with taxpayers. The indicated ... tax bases for operations with securities on the basis of a taxpayer application are taken into account ... with the acquisition and storage of the relevant securities and which the taxpayer made without ...
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...). When selling property (with the exception of securities) received free of charge or .... Payments under contracts of sale of securities. According to the additions made to clause ... under securities purchase and sale agreements (exchanges) concluded by them with taxpayers (if ... the tax base for operations with securities on the basis of a taxpayer’s application is taken into account ... with the acquisition and storage of relevant securities securities and which the taxpayer produced without ...
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The lender has the right to demand securities arising from a contract for the sale of securities exempted from taxation ... directly related to operations with securities and financial instruments of derivatives transactions ...
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From operations with securities carried out by a professional participant in the securities market as part of ... operations with securities of a Russian broker and for which securities (Russian or ... foreign financial instruments as securities ", if the qualification of foreign ... income received by the taxpayer during the sale of securities are included in the taxpayer’s income, ..., the taxpayer’s expenses for the purchase of securities include the amount of accumulated interest (...
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Real estate, vehicles and securities alienated during the reporting period ... indicated. Securities themselves are reflected in sec. 5 “Information on securities” (in the case of ... and (or) an agreement on trust management of securities, including an agreement on maintaining an individual ... -FZ “On the Securities Market”, a share is an issue security, securing the rights of its owner ... references. Subsection 5.2 “Other securities.” Securities include a share, a bill, a mortgage ...
- Income tax in 2017. Explanations of the Ministry of Finance of Russia
28201 The scope of rights granted to holders of securities of an additional issue may not ... differ from the scope of rights granted by securities of the main issue. In particular, ... the interest (coupon) income on securities, the tax agent must calculate the amount of ... income on the securities calculated on the basis of the term of ownership of the security by a foreign organization ... income on the securities calculated on the basis of the term of ownership a given security by a foreign organization ...
- Audit of the annual financial statements of organizations for 2018
An audit of the financial statements of organizations whose securities are admitted to organized ..., bank deposit agreements, debt securities, financial liabilities evaluated under ..., bank deposit agreements, debt securities, financial liabilities evaluated according to ... banking agreement deposit, debt security, financial liability upon initial recognition ... property; management of cash, securities or other property of the client; ...
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The composition of total expenses for the sale of securities tax-exempt ... from operations with securities carried out by a professional participant in the securities market as part of a brokerage ... sale, storage and redemption of securities, with transactions with derivatives ... carries out operations with securities of a Russian broker and for which securities (Russian or ... cooperatives and mutual investment funds, securities and derivative financial instruments. ...
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...: government securities of the member states of the Union State; government securities of constituent entities of the Russian Federation and municipal securities ... of Russian organizations, investment units, which are securities of the high-tech (innovative) sector of the economy. Rate ... of Russian organizations, investment units, which are securities of the high-tech (innovative) sector of the economy (with ...% 0% Income from securities Clause 4.2 Income from securities (except dividends ...
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... - to the voluntary declaration of foreign real estate, securities, bank accounts, foreign companies, ... - to the voluntary declaration of foreign real estate, securities, bank accounts, foreign companies, ... the benefits received from the acquisition of securities from such a foreign organization ... - voluntary declaration of foreign real estate, securities, bank accounts, foreign companies ... accounts, foreign property (real estate, securities, assets), foreign companies (CFC ...
Signs are the distinctive properties of securities, prerequisites. In the legal literature from the mid-19th century to the present, a different number of features has been proposed. So, G.F. Shershenevich identified four features of a security as the main ones:
- a) security - a document;
- b) security - the embodiment of law; securities - movable things;
- c) the content of the right embodied in the security must amount to property value;
- d) the definition of the subject of law follows from the document.
According to A. Trofimenko, a security has the following features (four in total): a security certifies subjective civil rights; corresponds to the beginning of the presentation; possesses the property of public authenticity; Corresponds to legal grounds for classifying securities (classified by law, etc.).
E.A. Sukhanov identifies the following features (properties) of a security (seven in total): Literature (the ability to demand the execution of only what is expressly indicated in the security), observance of strictly formal details; legitimization of a subject of law expressed in a security; presentation to the obliged person; the abstractness of the obligation fixed in it; a security gives the right expressed in it a property of autonomy.
HE. Sadikov identifies the following features (three in total): firstly, a security - a document of an established form and with mandatory details; secondly, any security must certify certain rights; thirdly, for the exercise or transfer of rights certified by a security, its presentation is necessary. Similar signs as the main ones are named by T.E. Abovoy, E.Yu. Kabalkin.
Emissive security - any security, including uncertificated, which is characterized simultaneously by the following features: it fixes the totality of property and non-property rights subject to certification, assignment and unconditional exercise in compliance with the form and order established by this Federal Law; placed by issues; has equal scope and terms for the exercise of rights within one issue, regardless of the time of purchase of the security.
In modern legal literature, the following features of securities are distinguished:
- -reversibility;
- -Accessibility for civil circulation;
- -standard;
- -documentation;
- -regulability and state recognition;
- -market;
- -information disclosure;
- -liquidity;
- - risk;
- - profitability.
Circulation - the ability of a security to be bought and sold on the market, and in many cases, to act as an independent payment instrument that facilitates the circulation of other goods.
Accessibility for civil circulation - the ability of a security not only to be bought and sold, but also to be the subject of other civil relations, including all types of transactions (loan, gift, storage, commission, order, etc.).
Standard - a security predominantly has a standard content (standard of rights granted by a security, standard of participants, terms, places of trade, accounting rules and other conditions for access to these rights, standard of transactions related to hand-to-hand transfer of a security, standard form security, etc.). It is standardness that makes a security a commodity that can be traded.
An individual non-standard contract is limited by the scope of the transaction in which it is concluded. He cannot handle. To transfer rights under this contract, a new contract must be concluded on individual terms.
Documentary A security is always a document, regardless of whether it exists in the form of a paper certificate or in non-cash form of record on accounts.
Documentation gives the final, “material” appearance to a product called a security. Only a document can fix the standard conditions for its circulation and use, ensure the multiple transfer of a security from hand to hand, as the same product, become evidence of the investor's eligibility for the rights granted by the security.
According to established legal practice, a security, as a document, must contain all the required details prescribed by law. The absence of at least one of them entails the invalidity of a security, or transfers this document from the category of securities to the category of other binding documents. For example, the absence of at least one obligatory requisite can invalidate a bill or transfer it to the category of a debt receipt, the relations of which are regulated instead of bill by general civil law.
Regulability and state recognition. Securities should be recognized by the state as such, which should ensure disclosure of information, clear rules for issuing and circulation, the necessary state supervision and, consequently, risk reduction, and public confidence in them.
The market. Circulation indicates that a security exists only as a special product, which, therefore, must have its own market with its inherent organization, rules for working on it, etc.
The bulk should belong to the market, to be goods and those resources, the rights to which are securities. For example, to the extent that free market circulation of land and real estate is limited, the mortgage market will also be undeveloped.
Information disclosure. Investing in securities on an honest and fair basis becomes possible only if investors entering the market receive equal access to information, if issuers of securities are required to disclose all information that may materially affect the market price of the security.
Liquidity - the ability of a security to be quickly sold and converted into cash (in cash and non-cash) without significant losses for the holder, with small fluctuations in market value and selling costs.
If the market refuses to recognize its liquidity, the reality of the rights expressed by it, then the security turns into a worthless scrap of paper.
Mandatory performance. According to Russian law, it is not allowed to refuse to fulfill an obligation expressed by a security unless it is proved that the security came to the holder in an unlawful way.
Profitability. Investors generally view securities as income-generating financial assets. Accordingly, profitability is usually considered by investors as a necessary attribute of a security.
The concept of a security, its properties and functions
Security paper - this is a form of capital existence, different from its commodity, productive and monetary forms, which can be transferred instead of itself, circulate in the market as a commodity and generate income.
Properties valuable papers:
1) negotiability- the ability of a security to be bought and sold on the market, and in many cases to act as an independent payment instrument that facilitates the circulation of other goods;
2) accessibility for civilian traffic - the ability of a security not only to be bought and sold, but also to be the subject of other civil relations, including all types of transactions (loan, gift, storage, commission, commission, etc.);
3) standard - the security must have standard content (standard of rights that the security represents, standard of participants, terms, places of trade, accounting rules and other conditions for access to these rights, standard of transactions related to hand-to-hand transfer of the security, standard form of the valuable paper, etc.);
4) seriality - the possibility of issuing securities in homogeneous series, classes;
5) documentary - a security is always a document, and as a document it should contain all the required details prescribed by law, the absence of at least one of them entails the invalidity of the security or transfers this document of their category of securities to the category of other binding documents;
6) regulability and state recognition - stock instruments, claiming the status of securities, should be recognized by the state as such, which should ensure their good regulation and, therefore, trust in them;
7) marketability - negotiability indicates that a security exists only as a special product, which, therefore, must have its own market with its inherent organization, rules for working on it, etc .; must for the most part belong to the market, be goods and those resources for which the rights are securities;
8) liquidity - the ability of a security to be quickly sold and converted into cash (in cash and non-cash) without significant losses for the holder, with small fluctuations in market value and selling costs;
9) risk - the possibility of losses associated with investments in securities and inevitably inherent in them;
10) binding execution- under Russian law, a refusal to fulfill an obligation expressed by a security is not allowed, unless it is proved that the security came to the holder in an unlawful way.
It should also be noted that the security performs a number of socially significant functions:
1) redistributes cash (capital) between sectors and sectors of the economy; territories and countries; groups and strata of the population; population and sectors of the economy; population and state, etc .;
2) provides certain additional rights to its owners in addition to the right to capital (for example, the right to participate in management, relevant information, priority in certain situations, etc.);
3) ensures the receipt of income on capital and (or) the return of capital itself, etc.
Types of Securities
There are dozens of varieties of securities. They differ in the rights and obligations of the investor (buyer of the Central Bank) and the issuer (the one who issues the Central Bank) fixed in them.
1 - Basic and derivatives .
As major securities are shares, bonds, treasury bonds of the state (notes, bills, certificates of deposit, etc.), which are rights to property, cash, products, land and other primary resources.
Stock - an equity security, securing the rights of its holder (shareholder) to receive part of the joint-stock company's profit in the form of dividends, to participate in management and to part of property remaining after its liquidation.
Bond - this is a debt obligation, according to which the issuer guarantees to the investor payment of a certain amount after a certain period and payment of annual income in the form of a fixed or floating interest.
Bill of exchange - a written contractual obligation drawn up in the form prescribed by law and giving its owner the unconditional right to demand, upon maturity, the person who issued the obligation to pay the amount of money stipulated in it.
Certificate of deposit - a written certificate of credit institutions on depositing funds, confirming the right of the depositor to receive a deposit.
Derivatives securities - securities certifying the owner’s right to buy or sell basic securities. These papers include options, financial futures.
Option - This is a bilateral agreement on the transfer of rights to buy or sell a certain underlying asset at a certain price at a certain future date. If the owner of the option can refuse to exercise his right, having lost the cash bonus that he paid to the counterparty, the futures transaction is mandatory for subsequent execution.
Financial futures - a contract under which an investor concluding it assumes an obligation, after a certain period of time, to sell to his counterparty (or buy from him) a certain amount of exchange commodity (or financial instruments) at a specified price. If the owner of the option can refuse to exercise his right, having lost the cash bonus that he paid to the counterparty, the futures transaction is mandatory for subsequent execution.
2 - Urgent and perpetual .
By maturity, the securities are divided into urgent and unlimited.
Generally accepted practice urgent securities are:
short-term - with a maturity of up to 1 year,
medium term - from 1 year to 5 years,
long-term - over 5 years (for debt obligations from 5 to 30 years).
TO perpetual Securities include stock instruments that do not have a final maturity - stocks, perpetual bonds.
3 - Registered, order, bearer .
On the basis of differences in the rights of the owner of securities in transactions with them, the securities are divided into registered, orderand bearer.
Personal a security is a document written in the name of a specific person who can only exercise the right expressed in it. Such securities can usually be transferred to other persons, but this is due to the implementation of a number of formalities and specially complicated procedures, which makes this type of securities unprofitable.
Order security - drawn up in the name of the first holder with the reservation “by his order”. Accordingly, order paper is transferred to another person by making a transfer inscription. According to Russian law, order papers may be a check, bill, bill of lading.
Presidential is such a security that does not indicate a specific person who should be executed. A person authorized to exercise the right expressed in such a security is any holder of a security who only has to present it. The specified type of security has a high turnover, since in order to transfer to another person the rights certified by the security, simply handing it over to that person is not required and no formalities are required. Examples of this kind of securities are government bonds, bearer bank savings books, checks, etc.
4 - State, corporate, private .
According to the form of ownership of the issuer, securities are divided into state, corporate and private.
State securities usually cover stock instruments issued or guaranteed by the government on behalf of the state, its ministries and departments, and municipal authorities.
Federal loan bonds (OFZ) are the main type of medium-term securities issued by the Government of the Russian Federation to finance the budget deficit.
Bonds of State Savings Loans (OGSZ) are issued by the Government of the Russian Federation to cover the budget deficit. The OGSZ provides the right to receive income above the level of profitability for other types of government securities.
Gold certificates, issued by the Ministry of Finance of the Russian Federation in 1993 for a period of 1 year, were placed in 1994. Guaranteed return on a certificate is accrued quarterly. The gold certificate is subject to tax benefits.
To securities corporations corporate liabilities to creditors regarding payment of debt in a timely manner, as well as interest on loans received. Typically, the goal of corporations issuing stocks and bonds is to mobilize long-term capital.
Many securities are issued by private companies or individuals and therefore received the name private (commercial)
TO private Securities include bills and checks.
Bill of exchange – it is a security drawn up in a strictly defined form, certifying a monetary debt obligation of the drawer (debtor), to pay a certain amount to the drawer (the holder of the bill, the creditor) upon the maturity date indicated by the bill of exchange. The bill may be simple and transferable. A promissory note is a registered security, since it indicates the name of not only the payer, but also the recipient of funds. Moreover, the drawer himself acts as the payer, and the beneficiary is the person in whose favor the bill was issued.
By check a security is recognized that contains an unconditional written order from the drawer to the bank to pay the holder of the check the amount indicated therein. The Bank issues to the drawer a special checkbook (limited or unlimited) with a certain number of checks. A check is a purely urgent security, since its validity period is determined by law and is 10 days from the date of issue. Checks can be registered, order and bearer.
1.3. Characteristics and properties of securities
The main properties of securities are as follows:
- negotiability -they are freely bought and sold, and are also an independent payment instrument;
- availabilityfor civil circulation - may be the subject of various agreements (sale, gift, storage, commission), are the subject of civil relations;
- standardrights and agreements, i.e. standard content;
- seriality- the possibility of release in homogeneous series, classes;
- documentary- a security is a document, regardless of whether it exists in the form of a paper certificate or in non-cash form of record on accounts;
- adjustability and recognitionby the state, which ensures public confidence in securities;
- marketability;
- liquidity -the ability to quickly sell in the market and turn into cash;
- risk -occurrence of losses associated with investments in securities.
Securities as financial and monetary documents show their properties as:
Documents confirming participation or membership in the issuing organization (shares, equity certificates, share certificates, certificates of participation in investment funds, etc.). In the context of the securities market, the ownership of the issuing organization, participation in or membership in it gives the holder of this security the right to take part in the management of the issuer, that is, in the general meeting of shareholders or participants, to vote, to make proposals, to nominate candidates to elected governing bodies the issuer, receive information regarding the activities and financial condition of the issuer, participate in the distribution of the issuer's property upon liquidation;
Debt documents, i.e. monetary documents, indicating the existence of creditor-debtor relations between the issuer and the owner of the security (various types of bonds, certificates of debt, bills of exchange, commercial papers, etc.). When purchasing debt documents, their owner receives the status of the issuer's creditor, and not the owner of his property. Conversely, when purchasing securities confirming participation or membership, their owner receives the status of the owner of the issuer's property. In case of debitor-creditor relations, the right to participate in the management of the issuer's affairs is not granted;
Means of payment (settlement), i.e., perform one of the monetary functions, since they also have value;
Means of enforcement. In some cases, there is a likelihood or risk that obligations taken may not be fulfilled. To reduce this likelihood or reduce risk, the debtor (buyer) can transfer his securities to the creditor (seller) as a guarantee that if he does not fulfill his obligations, the corresponding losses of the creditor (seller) will be covered by the cost of these securities.
Securities do not include:
Documents confirming receipt of a bank loan (in particular, a loan agreement);
Documents confirming the deposit of money in the bank (with the exception of deposit and savings certificates);
Debt receipts (not to be confused with bills of exchange!);
Wills;
Lottery tickets;
Insurance policies, etc.
In some countries, the main criterion by which some financial or monetary documents are considered securities, while others are not, is the legislative fixing of the list of securities.
The list of securities contained in the laws of different countries may be exhaustive or open. In the first case, only those monetary documents that are directly indicated in the list are recognized as securities. In the second case, the category of securities includes all monetary documents listed in the law, as well as others not listed, if they satisfy the requirements established by law.
Lists of securities can be wide and narrow. For example, the new version of the Law of Ukraine “On Securities and the Stock Market” provides 15 types of securities: stocks, investment certificates, bonds of local loans, corporate bonds, government bonds of Ukraine, treasury bills of Ukraine, savings (deposit) certificates, bills, mortgage bonds, mortgage certificates, mortgage certificates, certificates of funds for real estate operations (VON), privatization securities, derivative securities, property securities.
The Japanese Law "On Securities and Stock Exchange" (1948) contains a less broad list - 9 types of securities: stocks, government bonds, local bonds, special bonds of legal entities, secured and unsecured bonds of legal entities, investment certificates issued by legal entities and established in accordance with special legislation, beneficial certificates of trusts, securities issued by foreign states or foreign legal entities having the same statue c, as listed securities, certificates issued by order of the government.
US law (1933) contains an even broader list of securities. In accordance with this law, the term “security” means any short-term bond, share, treasury share, government bond, secured bond, debt certificate, certificate of participation in any income-distribution agreement, certificate of trust with secured assets, constituent certificate, certificate of subscription for securities, outstanding shares, investment contract, certificate of trust with voting rights, certificate of deposit, share in an indivisible share of oil and gas enterprises or other rights to benefit minerals, any buyer, seller option, double option or privilege associated with any security, certificate of deposit or a group of securities, or securities based on index indicators or value indices, or any buyer, seller option, either a double option, or a privilege received on the national stock exchange and related to foreign currency, or in general any instrument known as a “security”, or any certificate of affiliation or participation, temporary or an interim certificate, receipt, guarantee or option, or the right to subscribe, or the right to purchase all of the above.
National securities markets have both common features and specific features. These features can be explained by the historical development of a given country, or they can be of linguistic origin. For example, in determining the types of securities, the Japanese approach is more “tough”, and the American one is relatively “free”. In Japan, the law ensures that only certain monetary documents are called securities, and US law is prepared to recognize a significantly larger number of monetary documents as securities. In the legislation of Japan (based on national historical characteristics) it is not customary to use expressions such as “any instrument that is understood as a security”. Conversely, the term "certificate of participation in the distribution agreement" or other terms are features of the evolution of the American market.
Linguistic differences are twofold. For example, securities with a similar status may be designated by different terms. So, in Europe, short-term obligations of the state are sometimes called a draft, in the USA - a bill. On the other hand, the same term can have different meanings. Thus, a written debt certificate “debenture” in the USA means a security secured by a reputation, not the assets of the issuer, in the UK, on \u200b\u200bthe contrary, it means a security secured by the assets of the issuer. The term “profitable bonds” in the UK is used to define fixed interest bonds issued by insurance companies; in the USA, it means bonds on which the issuer guarantees payment of the nominal value, and interest can be paid only if the issuer makes a profit, and the board of directors decides to pay interest.
For example, the Japanese law “On Securities and the Stock Exchange” (1948), the law of Ukraine “On Securities and the Stock Market” as amended in 2006 contain an exhaustive list, in the United States in the “Law on Securities” (1933) the list is open.
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