The main properties of securities are as follows:
- negotiability - they are freely bought and sold, and are also an independent payment instrument;
- availability for civil circulation - can be the subject of various agreements (purchase and sale, donation, storage, commission), are the object of civil relations;
- standardity rights and agreements, i.e. standard content;
- series- the possibility of issuing homogeneous series, classes;
- documentation- a security is a document, whether it exists in the form of a paper certificate or non-cash form account entries;
- adjustability and acceptance by the state, which ensures public confidence in securities;
- marketability;
- liquidity - the ability to quickly sell on the market and turn into cash;
- risk - the 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, share certificates, share certificates, certificates of participation in investment funds, etc.). In the context of the securities market, belonging to, participation in or membership in the issuing organization gives the owner of this security the right to take part in the management of the issuer, i.e. in general meeting shareholders or participants, vote, make proposals, nominate candidates for the issuer's elected governing bodies, receive information regarding the activities and financial condition of the issuer, participate in the distribution of the issuer's property in the event of its liquidation;
Debt documents, i.e., monetary documents indicating the existence of creditor-debtor relations between the issuer and the owner of the security ( different types bonds, certificates of indebtedness, bills of exchange, commercial paper, etc.). When acquiring debt documents, their owner receives the status of the issuer's creditor, and not the owner of its 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 (settlements), i.e. perform one of monetary functions because they also have a cost;
Means of enforcement of obligations. In some cases, there is a possibility or risk that the commitments made may not be fulfilled. In order to reduce such a probability or reduce the risk, the debtor (buyer) may pledge his securities to the creditor (seller) as a guarantee that in case he fails to fulfill his obligations, the corresponding losses of the creditor (seller) will be covered by the value of the said securities.
Securities do not include:
Documents confirming receipt bank loan(in particular, a loan agreement);
Documents confirming the deposit of money in the bank (with the exception of deposit and savings certificates);
IOUs (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 consolidation 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 instruments that are directly indicated in the list are recognized as securities. In the second case, the category of securities includes all monetary instruments listed in the law, as well as others not listed in the list, if they meet the requirements established by law.
Lists of securities can be wide or narrow. For example, in new edition Law of Ukraine "On Securities and the Stock Market" provides for 15 types of securities: shares, investment certificates, bonds of local loans, bonds of enterprises, government bonds of Ukraine, treasury obligations of Ukraine, savings (deposit) certificates, bills of exchange, mortgage bonds, mortgage certificates, collateral, real estate fund certificates (FON), privatization papers, derivative securities, commodity securities.
The Japanese Securities and Stock Exchange Law (1948) contains a less extensive list - 9 types of securities: shares, government bonds, local bonds, special bonds of legal entities, secured and unsecured bonds of legal entities, investment certificates that are issued legal entities and created in accordance with special legislation, beneficial certificates of trusts, securities issued foreign states or foreign legal entities having the same status as listed securities, certificates issued by order of the government.
The US law (1933) contains an even wider list of securities. Under this law, the term "security" means any short-term bond, share, treasury interest, government bond, secured bond, certificate of debt, certificate of participation in any income distribution agreement, certificate of trust with secured assets, certificate of incorporation, certificate of subscription securities, outstanding share, investment contract, voting trust certificate, certificate of deposit, equity interest in an oil and gas business or other mineral rights, any call, put, dual option or privilege associated with any valuable a security, a certificate of deposit, or a group of securities, or securities based on indices or value indices, or any call, put, or double option or preference received on a national stock exchange and associated with foreign exchange, or in general any instrument known as a "security", or any certificate of ownership or participation, provisional or intermediate certificate, receipt, guarantee or option, or 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 have a linguistic origin. For example, when determining the types of securities, the Japanese approach is more “rigid”, while the American one is relatively “free”. In Japan, the law enforces that only certain monetary instruments are called securities, while US law is prepared to recognize a much larger number of monetary instruments as securities. In Japanese law (based on national and historical characteristics) it is not customary to use expressions like "any instrument that is understood as a security." Conversely, the term "certificate of participation in the income-distribution agreement" or other terms represent features of the evolution of the American market.
Linguistic differences manifest themselves in two ways. For example, securities that have a similar status may be referred to 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 promissory note "debenture" in the US means a security secured by the reputation, and not by the assets of the issuer, in the UK, on the contrary, it means a security secured by the assets of the issuer. The term "income bonds" in the UK is used to define fixed interest bonds issued by insurance companies; in the US, it means bonds on which the issuer guarantees the payment of par value, and interest can be paid only on the condition that 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, the list is open in the “Securities Law” (1933).
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Securities is a document certifying, in compliance with the established form and obligatory details, property rights, the exercise or transfer of which is possible only upon its presentation.
The Civil Code of the Russian Federation lists specific types of documents that relate to securities:
government bond;
bond;
banking savings book bearer;
bill of lading;
privatization securities;
warehouse receipt as part of a double certificate;
pledge certificate (warrant) as part of a double certificate;
simple warehouse certificate;
mortgage;
other documents that are classified as securities by securities laws or in the manner prescribed by them
Securities have the following properties:
Negotiability - the ability of securities to be bought and sold on the market, and in many cases to act as an independent payment instrument.
Availability for civil circulation - the ability of a security to be the object of other civil transactions.
Standardization and serialization.
Documentary; a security is always a document, and as a document it must contain all the mandatory details provided by law.
Regulatory and state recognition.
Marketability - securities are inextricably linked with the relevant market, are its reflection.
Liquidity is the ability of a security to be quickly sold and converted into cash.
Risk is the possibility of loss associated with and inevitably inherent in investing in securities.
Mandatory performance.
Yield - characterizes the degree of realization of the right to receive income by the owner of the security.
Securities perform a number of essential functions:
Securities characterize the state of the economy. Stable prices for securities, as a rule, indicate a good economic situation.
Securities play an important role in the redistribution of capital between various areas economy. That is, securities perform a redistributive function.
Securities are used to accumulate temporarily free cash 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, securities perform a settlement function.
The 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 be even further.
Securities can be classified according to the following criteria:
1. By the period 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. These perpetual securities are usually referred to as shares.
Securities that have a period of existence established at the time of their issue or the procedure for establishing this period are considered term securities. Usually term securities are divided into three subspecies:
short-term securities with a circulation period of up to 1 year;
medium-term securities with a circulation period of 1 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 (uncertificated).
The classical form of the existence of a security is a paper form, in which the 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 without documentary form.
3. By form of ownership: bearer (bearer securities) and registered, which contain the name of their owner and are registered in the register of owners of this security.
A bearer security does not fix the name of its owner, and its circulation is carried out by a 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 treatment (order of transfer): transferred by agreement of the parties (by delivery, by assignment) or order (transferred by order of the owner - endorsement).
If a registered security is transferred to another person by making an endorsement (endorsement) on it, or by an 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 series, which are subject to mandatory state registration. Securities usually include stocks and bonds.
Non-equity securities are issued without any state registration.
6. By registerability: 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 the authorities. government controlled. Usually, emissive securities are subject to state registration, since their issue affects the interests of a large number of market participants. By Russian legislation issued shares, bonds, bank certificates(registered central bank) and mortgages. 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), non-government or corporate (these are securities that are put into circulation by companies, banks, organizations and even individuals).
9. By negotiability: marketable (freely tradable), non-marketable, 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 on the market. However, in some cases, the circulation of securities may be limited, and the security cannot be sold to anyone other than the one who issued it, and strictly after a specified period. Such papers are called non-marketable.
10. According to the purpose of use: investment (the purpose is to generate income) or non-investment (serve the turnover in the commodity markets).
11. By risk level: risk-free or risky (low-risk, medium-risk or high-risk).
Risk-free securities are securities for which there is little to no risk. In world practice, these are short-term (1-3 months) state debentures(treasury bills). All other securities according to the level of risk are usually divided into low-risk (usually government securities), medium-risk (usually corporate bonds) and high-risk (usually stocks).
12. By the presence of accrued income: income-free or profitable (interest, dividend, discount).
From the point of view of accrued income, securities, as a rule, are income-generating, but they can also be unprofitable when for their owner they are a simple certificate for goods or for money, and not for capital. Income on a security can be accrued in the form of a dividend (shares), interest (debt securities) or a discount, i.e. the difference between the face value of a security and its 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 allowed to issue, for example, shares without a monetary value or with a zero value. In this case, it is indicated what share in the authorized capital is one share, and therefore its face value, calculated by dividing the authorized capital by the number of shares, changes each time with a change in the size of this capital, and does not remain unchanged, as in the case when the nominal value of the security is given upon its release. If a security is issued with an indication of a monetary denomination, then such a security is considered a security with a constant denomination. If a security is issued without a cash denomination (with a zero denomination), then such a security is considered a security with a variable denomination.
14. By the form of capital raising: equity (reflecting a share in the authorized capital of the company) and debt, which are a form of borrowing capital (cash).
All securities held by the organization must be described in the securities ledger.
The book of accounting for securities must have the following mandatory details: the name of the issuer; the nominal price of the security; purchase price; number, series, etc.; total; date of purchase; sale date. The book of accounting for securities must be bound, sealed with the seal of the organization and signed by the head and chief accountant, the pages are numbered. Corrections to the book of accounting for securities may be made only with the permission of the head and chief accountant, indicating the date of the corrections.
In the case of maintaining a book of accounting for securities using computer technology, the resulting information can be generated in the form of an output document on machine-readable media. Printing information from machine-readable media is carried out as necessary or at the request of the bodies exercising control in accordance with the law Russian Federation, courts and prosecutors, but at least once a year.
In accordance with federal law"On Accounting" the head of the organization is responsible for organizing the storage of the book of accounting for securities.
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Security: details for an accountant
Individuals arising from the sale of securities. I quote: "For the purposes of this ... Russian Federation of shares or other securities ...". Pay attention to the term ... individuals arising from the sale of securities. I quote: "For the purposes of this ... the Russian Federation shares or other securities ...". Pay attention to the term ... income of an individual from the sale of securities, and an individual by the sale, ... RF, income from the sale of securities individuals not subject to tax...
From the form of registration of borrowings, including securities on debt obligations. This norm ... when the bill acted as an object of property (security) received by the taxpayer (his legal predecessors) at ... determined on the basis of the purchase price of securities (paragraph 3 of Article 280 of the Tax Code ... definitions tax base upon disposal of securities by the taxpayer, the price of acquisition of securities by his legal predecessor may be accepted, among other things. Definition from 26...
... - on transactions with securities circulating on the organized securities market; 202 - for transactions ... from transactions 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 ... interest on state and municipal securities ”sheet 03; code 8 - in...
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 in transferable securities through a Russian or foreign arranger ... the corresponding transaction in the security was concluded; 2) for the purposes of taxation... (acquisition) or other disposal of securities. From 01/01/2020, the paragraph ... of the sale (acquisition) or other disposal of securities, determined in the manner prescribed ...
When selling property (with the exception of securities) received free of charge or ... by tax agents. Agreements for the purchase and sale of securities According to additions made to p... agreements for the sale (exchange) of securities concluded by them with taxpayers. The indicated ... tax bases for transactions with securities on the basis of a taxpayer's application are taken into account ... with the acquisition and storage of the relevant securities and which the taxpayer produced without ...
...). When selling property (with the exception of securities) received free of charge or ... . Payments under contracts for the sale of securities. According to the additions made to paragraphs ... under agreements for the sale (exchange) of securities concluded by them with taxpayers (if ... the tax base for transactions 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 ...
A creditor of the right to claim securities arising from an agreement on the sale of securities exempt from taxation ... , directly related to operations with securities and financial instruments of futures transactions ...
From transactions with securities carried out by a professional participant in the securities market within the framework of ... transactions with securities by a Russian broker and for which securities (Russian or ... foreign financial instruments as securities" if the qualification of foreign ... income received by the taxpayer from the sale of securities is included in the taxpayer's income, ..., the taxpayer's expenses for the acquisition of securities include the amount of accrued interest (...
real estate, vehicles and securities alienated during the reporting period ... is indicated. The securities themselves are reflected in Sec. 5 "Information about 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 issuance security that secures the rights of its owner ... references Subsection 5.2 “Other securities.” Securities include a share, a promissory note, a mortgage...
28201 The scope of rights granted to holders of additional issue securities cannot ... differ from the scope of rights granted by securities of the main issue. In particular, ... interest (coupon) income on securities tax agent must calculate the amount ... of income on securities calculated on the basis of the period of ownership of this security by a foreign organization ... income on securities, calculated on the basis of the period of ownership of this security by a foreign organization ...
audit financial statements organizations whose securities are admitted to organized ..., contracts bank deposit, debt securities, financial liabilities valued under... , bank deposit agreements, debt securities, financial liabilities valued under... bank deposit agreements, debt securities, financial obligation upon initial recognition ... as property; management of cash, securities or other property of the client; ...
The composition of the total expenses for the sale of securities exempt from taxation by tax ... from transactions with securities carried out by a professional participant in the securities market as part of brokerage ... , sale, storage and redemption of securities, with transactions with derivatives ... a Russian broker carries out operations with securities and for what securities (Russian or ... cooperatives and mutual funds, securities and derivative financial instruments. ...
... : government securities of the member states of the Union State; government securities of constituent entities of the Russian Federation and municipal securities ... Russian organizations, investment shares, which are securities of the high-tech (innovative) sector of the economy. The rate ... of Russian organizations, investment units, which are securities of the high-tech (innovative) sector of the economy (with ... % 0% Income on securities Clause 4.2 Income on securities (except dividends ...
The tax deduction for the sale of securities purchased after January 1 ... is paid by the company itself - the issuer of the securities. Tax liability for income from ... in the tax. For holders of securities, Russian legislation provides for a number of tax ... investment tax deductions for holders of securities circulating on their organized ... with IIS, and the acquisition of securities of foreign issuers is allowed only on ... tax deduction when selling securities purchased after January 1...
... – voluntary declaration of foreign real estate, securities, bank accounts, foreign companies, ... - voluntary declaration of foreign real estate, securities, bank accounts, foreign companies, ... 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...
Securities are monetary documents confirming the fact that their owner has contributed funds, give the right to receive one-time or regular income, to return funds invested in the purchase of a security, and also confirm a loan relationship or a co-ownership relationship.
A security has several values:
face value - the value of a security indicated on its letterhead or stipulated by the terms of issue. It is calculated as the ratio of the authorized capital to the number of securities in circulation;
issue price - the cost of a security at which it is sold to the first owner. It is the sum of the face value and the issue premium. For shares, the nominal and issue value is the same or the issue value may be higher than the nominal value;
Market value - the value of a security on a specific date, determined on the basis of supply and demand on the secondary securities market, that is, the share price;
a bookstore or book value- balance sheet value of own property attributable to one issued security. It is the ratio of the company's own capital to the number of securities in circulation.
The main indicator reflecting the profitability and market value is the price of the security. Calculated as a ratio market value to the nominal, or, the market value of the reporting year to the market value of the base year, when the security is traded for several years on the market.
One of the main indicators characterizing the investment attractiveness of a share is the rate of return on securities. Yield is calculated by the ratio of the amount of income on securities to the amount of expenses for their acquisition. The yield on securities is determined as a percentage. Profitability is current and final.
Current yield - the ratio of income received for a certain period to the amount of expenses for its acquisition.
Final yield - the ratio of income received on a security from the moment of its acquisition until the moment of its redemption by the issuer or sale to a third party to the amount of expenses for its acquisition.
Main properties of securities:
negotiability - the ability of securities to be bought and sold on the market or to act as an independent payment instrument, to be an object of collateral as material assets;
availability for civil circulation - the possibility of performing all types of transactions in accordance with the status of this security;
Standardization - securities must have a standard design and content, transactions with them also have a standard procedure. Such norms are most often set by the state;
· series - the possibility of issuing most securities in homogeneous series with their consistent implementation;
Documentation. The fact of the issue of securities means that the issuer assumes documented obligations in accordance with the conditions contained in the information on the issue (or in another document) in accordance with current regulations or set forth in the security itself. The non-documentary form of issuing securities implies the operation of similar rules;
regulation and recognition by the state means that the main function government agencies in this field of activity - regulation of the basic rules for the issuance and circulation of securities, licensing (if necessary) and control over the activities of all market participants;
Marketability - reflects their features as a unique product that has its own specialized markets with their inherent organization, rules of work, infrastructure, informatization systems, etc. As a result, securities are a certain form of investment or an object of short-term speculation;
the return on securities. One of the main reasons for investing in securities is the opportunity to receive income from the ownership of these assets or from transactions with them. This stimulates the activities of all participants in the securities market;
The liquidity of securities reflects the possibility in a developed stock market their immediate sale with simple procedures for registration of these operations;
· risk. When dealing with securities, it is imperative to take into account their inherent risk, which is characterized by the probability of partial or complete loss of capital and expected income. There are methods for calculating, predicting and reducing the likely risk;
· mandatory execution means that the parties involved in transactions with securities undertake in advance to fulfill all the conditions stipulated during the issuance and sale of these securities. Control over execution should be provided by the state or other organizations (for example, stock Exchange);
The period of existence of securities is determined by the terms of their issue and may be with an indication of a specific period of circulation, after which they are redeemed and lose their functions (for example, bonds) or without specifying a specific period of circulation (for example, shares). In the latter case, securities exist as long as the issuer operates.
The features of the security include:
a security can express both an ownership relationship and a credit relationship;
• a security may provide a right to receive income or an obligation to pay income;
· having no intrinsic value, the security reflects the value of the real capital invested in the issuer's enterprise;
Securities can act as a means of payment or as an object of collateral.
Types of securities:
1. By ownership of the claimed rights, securities are divided into registered, bearer and order.
registered security – the transfer of ownership of registered securities is subject to mandatory registration in the register of owners of registered securities, which is maintained by a depositary institution, registrar or issuer of securities.
If registered securities are issued in documentary form, the name of the new owner is indicated on the form or certificate of securities.
Securities to bearer – circulate freely, and all rights on them are transferred to the new owner by nominal endorsement.
Order security – the owner can present the rights himself or transfer them by endorsement, without registration in the register of owners (promissory note).
2. According to the form of issue, there is a documentary and non-documentary form of securities.
documentary form – provides for the issuance of forms of securities indicating the nominal value, information about the issuer (with the necessary means of protection).
A non-documentary form does not provide for the issuance of blank securities, and securities circulate in the form of an entry on the accounts of a depository institution.
3. By subjects.
Government securities – debt securities, the issuer is the state represented by the government. These include OVGZ. In accordance with the Law of Ukraine "On Joint Stock Companies" in Ukraine, shares are issued only in non-documentary form.
Local government securities are municipal debt securities, that is, bonds of regional and city governments.
Corporate securities – debt (bonds) and equity (shares) securities of business entities may be issued by state and non-state enterprises.
4. According to the method of treatment.
Market – securities that can be freely traded on the securities market. For example, corporate and government stocks and bonds.
Non-market. Shares of founders of investment funds can serve as an example.
Securities with a limited range of circulation. These include shares of closed joint-stock companies.
5. By terms:
Perpetual - the term of circulation of which is not limited (shares);
short-term - up to 1 year;
medium-term - from 1 year to 3 years;
long-term - more than 3 years.
6. According to the method of income payment:
· discount - placed at a price below the face value, and redeemed by the issuer at face value. The difference between the issue and nominal value is called the discount and is the investor's income. If the issuance value exceeds the par value, the security is placed at a premium;
interest-bearing securities - income on them is paid in the form of interest, stipulated by the terms of the issue of securities (interest-bearing bill);
· securities of mixed type - interest-bearing securities placed at a price different from the nominal value;
Securities with non-guaranteed income , such as common shares.
7. According to the degree of security of funds invested in securities:
unsecured securities - return invested funds secured by all property of the issuer;
· secured securities – the return of invested capital is secured by the issuer's collateral as a matter of priority.
8. According to the consequences property rights:
· property (equity) securities give the right to a part of the property of the enterprise and the status of its co-owner;
· debt securities provide the owner with the status of a creditor in relation to the issuer of securities;
· derivative securities – give the right to conduct transactions with other securities in the future on the terms fixed at the time of purchase of derivative securities.
9. By groups of securities.
Mutual (equity) securities:
A share is a perpetual security that confirms share in the statutory fund joint-stock company and giving the right:
a) to manage a joint-stock company;
b) to receive a part net profit in the form of dividends;
c) to receive a part of the property of the joint-stock company in the event of its liquidation.
investment certificate - a security issued by a mutual investment fund, confirming the deposit of funds and giving the right to receive dividends based on the results of activities investment fund at a price exceeding the price of its placement;
Debt securities:
· bond - a term security, confirming the deposit of funds by its owner and confirming the obligation of the issuer to reimburse the nominal value of the bond with the payment of the interest indicated in it;
treasury bills - bearer securities placed on a voluntary basis among the population, certifying the contribution of their owner of funds to the budget and giving the right to receive financial income;
· savings (deposit) certificate - a written certificate of the bank on depositing funds to a deposit account and giving the right to receive the deposit amount and interest on it after the expiration of the deposit;
· promissory note - a security certifying an unconditional monetary obligation to pay after the expiration of the term specified by the promissory note the amount and interest on it.
Mortgage-backed securities are securities the issue of which is secured by a mortgage.
Privatization securities - reflect the owner's rights to free receipt in the process of privatization of part of the property of state enterprises, state housing stock, land fund.
Commodity securities – grant the right to dispose of the property specified in these documents.
Derivative securities – term contracts for future transactions with securities of a given issuer within the circulation period of these contracts.
10.By types of markets where securities are traded:
money securities (short-term bills, bonds, certificates of deposit);
· capital securities - funds from the issue of these securities form or increase long-term capital.
Signs are the distinctive properties of securities, mandatory conditions. In the legal literature from the middle of the 19th century to the present, a different number of features have been proposed. So, G.F. Shershenevich singled out four signs of a security as the main ones:
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; has the property of public reliability; corresponds to the legal grounds for referring to the number of securities (ranked by law, etc.).
E.A. Sukhanov highlights the following signs(properties) of a security (seven in total): Literality (the ability to demand execution only of what is directly indicated in the security), compliance with strictly formal details; legitimation of the subject of law, expressed in a security; presentation to the obligated person; the abstract nature of the obligation enshrined in it; the security gives the property of autonomy expressed in it to the right.
HE. Sadikov distinguishes the following features (three in total): firstly, a security is a document of the established form and with mandatory details; secondly, any security must certify certain rights; thirdly, in order to exercise or transfer the rights certified by a security, it is necessary to present it. Similar features are named as the main ones by T.E. Abova, E.Yu. Kabalkin.
Equity security - any security, including non-documentary, which is simultaneously characterized by the following features: fixes a set of property and non-property rights subject to certification, assignment and unconditional exercise in compliance with the form and procedure established by this Federal Law; placed by issues; has an equal volume and terms of exercising rights within one issue, regardless of the time of purchase of the security.
In modern legal literature, the following features of securities are distinguished:
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.
Availability for civil circulation - the ability of a security not only to be bought and sold, but also to be an object of other civil relations, including all types of transactions (loans, gifts, storage, commissions, orders, etc.).
Standardity - a security mainly has a standard content (standardization of the rights that a security provides, standardization of participants, terms, places of trading, accounting rules and other conditions for access to these rights, standardization of transactions related to the transfer of a security from hand to hand, standardization of the form securities, etc.). It is standardity that makes a security a tradable commodity.
An individual non-standard contract is limited to the scope of the transaction in which it was made. He cannot apply. To transfer rights under this contract, it is necessary to conclude a new contract on individual terms.
Documentation. A security is always a document, regardless of whether it exists in the form of a paper certificate or in a non-cash form of an account entry.
Documentation gives the final, "material" appearance to the commodity 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 one and the same product, and become evidence of the investor's eligibility to access the rights granted by the security.
According to the established legal practice, a security, as a document, must contain all the mandatory details provided for by law. The absence of at least one of them entails the invalidity of the 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 mandatory props can invalidate a bill of exchange or transfer it to the category of a debt receipt, relations on which are regulated instead of a bill of exchange - by general civil legislation.
Regulatory and state recognition. Securities should be recognized by the state as such, which should ensure disclosure of information, clear rules for issuance and circulation, necessary state supervision and, accordingly, risk reduction, and public confidence in them.
Marketability. Negotiability indicates that a security exists only as a special commodity, which, therefore, must have its own market with its inherent organization, rules for working on it, etc.
Should in the bulk belong to the market, be commodities and those resources, the rights to which are securities. For example, to the extent that free market turnover land and real estate, the mortgage market will be equally undeveloped.
Information disclosure. Investing in securities on an honest and fair basis becomes possible only if investors entering the market have equal access to information, if issuers of securities are required to disclose all information that may have a material impact on the market price of a security.
Liquidity - the ability of a security to be quickly sold and converted into cash (in cash and non-cash form) 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 piece of paper.
Mandatory performance. Under 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.
Yield. Investors usually view securities as financial assets that generate income. Accordingly, the yield is usually considered by investors as a necessary attribute of a security.
