Classification of securities

A security is a financial instrument that gives the right to receive future income to the owner.The document confirming the right to property, which arise only upon presentation of the security.Securities may be on paper or on a magnetic medium. classification of securities is carried out on different grounds.There are two major classes of securities: basic and derivatives.

Derivative securities futures transactions is or contracts and options.

Basic securities are divided into two groups: primary and secondary.At the heart of primary securities are assets (stocks, bonds, bills).Secondary securities are issued on the basis of primary and are themselves securities on securities (warrants, depositary receipts).

There are a variety of securities, that underlie their classification.In terms of the existence of distinguished term and demand securities.By type of use of allocated investment and non-investment securities.The shape of the release of non-equity and equity are, and on ownership distinguished public and private securities.Also distinguish between risky and risk-free securities and profitable Unprofitable, equity and debt, domestic and foreign.

Any security legally confirms the substantive rights of the owner.Each holder of securities knows what concept and classification of securities. Blanks carefully protected against forgery, paper and ink have several degrees of protection.

most widely used government bonds, shares, bills, checks, savings and certificates of deposit, bills of lading.The shares are ordinary, registered shares, preference shares and bearer. classification of securities in the form of shares into registered shares, with the share and bearer bonds with warrants and floating dividends.Shares can be placed and to declare.All shares have a nominal price and the market value or exchange rate.The action is lobar security, which grants the right to receive dividends and upon liquidation of the assets of the company.

Bond is a debt security, which regulates the relationship between the lender and the borrower.Very often government bonds are issued, but can carry out the production and companies and various organizations. Classification of securities - bonds includes, in turn, notes, treasury bonds, treasury bills or certificates.But bonds are issued only for a specified period, with mandatory return.Bonds may be renewed deferred convertible, indexed mortgage with Redemption Fund, a trust trustee software, nominal coupon and freely traded, and the limited range of treatment, interest and interest-free.Bonds always bring income.

Bill is a promissory note issued by the lender and gives him the right to demand a sum of money specified in the bill at the end of time.

Cheques are registered, to order, bearer, cash, settlement, privatization.The payer by check is always the bank that issued the check.

Classification of securities , such as bank certificates, divided by type of investor in the depository, which uses only a legal entity and savings used by the population.All certificates term securities are issued for a period of up to three years.To all forms of securities, there are certain requirements depending on their nominal value, term to maturity and type.