What is a bill?

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Stocks, bonds, promissory notes - are securities, each of which has its own characteristics.Ordinary shares, for example, are entitled to vote, with the participation in the general meeting of shareholders, their owners can receive dividends.Moreover, equities tend to stand above the privileged, if the securities listed on the stock exchange.

bond - it is a debt instrument that gives the holder the right to receive the par value and, in some cases, the coupon as a percentage of the nominal value.For those companies that issue bonds, they are analogous to the loan.For those who buy them - the ability to earn a coupon payment, which sometimes exceed the interest on bank deposits.Stocks and bonds are usually issued in book-entry form, in the form of entries in the accounts, and are equity securities.

When experts talk on "What is a bill?", They point to its special nature.He is a non-equity securities and debt is duly prepared a paper document, which indicated that the maker agrees to unconditionally pay a specified amount (promissory note).These securities are issued frequently on special forms that print printing with permission.For protection, such forms have at least special paper, watermarks, polymer threads, micro text.Large borrowers issue securities with a unique design and additional protection.

addition, there is also a simple version of the conversion obligation.What is the promissory notes issued in such a form?It presupposes the existence of the order (proposal) from the person who provides the security, to the payer to pay the owner a certain amount in a given period of time.For such a financial instrument traded safely, at the Issuer's reputation to be a reliable "borrower", which fulfills its obligations.Sometimes, to increase the attractiveness of the person issuing these obligations, enter into a general agreement or a separate agreement (such as a credit institution), which is used by availing bills.This operation means that the bank must repay the debt of the person obliged by this security.

Perhaps some will be interested to know what the bill from a historical perspective.This document appeared in Italy around the 12th century.The country was the center of commerce, merchants came here from all over the world with their coins.A variety of currencies has meant that it has taken the money-changers.They took some recompense for operations and made a record of the transaction in their books, which at the time equated to notarization.With increasing trade carry money from one city to another has become dangerous.Therefore, businessmen handed money moneychanger banker, he made notes in the book, repeated it on a separate sheet, which could present another banker.So there was a translated version of a financial instrument.

What is the bill for the financial system in Russia?In the pre-perestroika period, treatment of these securities was primarily the external economic character.With the emergence of market relations appeared and bill operations.In the early 90's they did not spread due to high inflation, slowdown in the economy.Respectable borrowers of such a plan appeared only in 1994-95.in the face of large companies and banks.After the 1998 crisis, the bill served as tools to support the liquidity of the financial system.They are now widely used, along with other assets for a variety of accounting operations and profit.