Classification of securities as well as securities only, there is great variety.Let us consider the classification of securities by ownership.According to her, there are public and private securities.Non-government investments - are investments in securities that produce joint-stock companies and commercial banks (share certificates).Government securities - a paper that produces the state, public institutions, local authorities (bonds, treasury bills).
All government securities, in essence, are debt securities.However, each security issued by the state, has its own name, for example, internal currency bonds, etc.Among other securities of government securities characterizes the high level of reliability, minimized risk of loss of equity and income on fixed capital, very favorable taxation (or lack thereof).
State may make up the budget deficit at the expense of the Central Bank, on the issue of money and by issuing securities.If the government has sought assistance from the Central Bank reduced the possibility of regulating the loan market.Emission of money enters into circulation means of payment that are not real assets, leading to further inflation and disruptions in monetary circulation of the country.The issue of government securities - the most cost-effective way to finance the budget.
government securities can also be used to finance the public debt, and it is much preferable to raising funds through bank loans.Debt obligations of the state is much more liquid and much easier for investors to realize them in the secondary market.
Sometimes government securities provide commercial banks with liquid assets.To do this, banks are investing (mostly from the reserve fund) as part of the government issued securities.Also, government securities issued to finance the programs, which are implemented by local authorities.The state can give a guarantee for the debt of organizations that, according to the State deserve its support.
issuance of government securities may also be caused by the necessity of repayment of previously issued loans to the government.Sometimes the state will have a short gaps between revenues and expenses due to the mismatch of time of receipt of payments in the budget and uniform budget expenditures.Then the government again resorted to the issue of government debt.
Some types of securities designed to smooth out the uneven tax revenues.Owners of such securities can return them back to the government after a certain time or pay their taxes.
State securities of the Russian Federation reflect the specificity of our country, especially taxation, and at the same time, based on the common bases of the different countries the existence and functioning of the securities market.In the Russian Federation kinds of government securities are determined by the Bank of Russia and the Ministry of Finance of Russia.The most common of them: state short-term zero-coupon bonds (T-bills), bonds of internal state currency loan - available since 1993, federal loan bonds with fixed coupon income bonds of the state savings loan issued in 1995, Bank of Russia bonds (OBR), and so on.d.
