Securities market instruments are various forms of financial obligations (for short-term and long-term investment), which are traded on the securities market.

Securities market instruments:
- basic;
- derivatives - bills of lading, certificates, checks, options, futures, bills, etc.

Basic securities- these are securities based on property rights to any asset (goods, money, capital, property, resources, etc.).
Basic securities are divided into primary and secondary:

• primary are based on assets, which do not include the securities themselves (stocks, bonds, bills, bank certificates, checks, mortgages, bills of lading, etc.);
• secondary ones are issued on the basis of primary securities, i.e. these are securities for the securities themselves (warrants for securities, depository receipts, etc.).

The following are legally (legally) permitted for release and circulation in Russia: economic types of securities:

• promotion;
• bond;
• bill of exchange;
• bank certificate;
• bill of lading;
• mortgage;
• investment share.

In addition, in Art. 912 of the Civil Code of the Russian Federation introduces four more types of securities:

1. double warehouse receipt;
2. warehouse receipt as part of a double certificate;
3. certificate of pledge (warrant) as part of a double certificate;
4. simple warehouse receipt.

Promotion:

• legal definition - an issue-grade security that secures the rights of its owner (shareholder) to receive part of the profit of the joint-stock company in the form of dividends, participation in the management of the joint-stock company and part of the property remaining after its liquidation;
• economic definition is a security certifying a single contribution to the authorized capital of a business partnership with the ensuing rights for its owner.

Bond:

• legal definition - an issue-grade security that secures the right of its holder to receive from the issuer a bond within the period specified by it, the nominal value and the percentage of this value or the property equivalent fixed in it;
• economic definition is a security that certifies a single debt obligation of the issuer (the state or any other legal entity) for the return of its nominal value after a certain period in the future on terms that suit its holder.

Government bond and just a bond- this is the same type of security with the only difference being that a government bond can only be issued by the state, while a simple bond can be issued by any legal entity.

Bill of exchange- a security certifying a written monetary obligation of the debtor to repay the debt, the form and circulation of which are regulated by special legislation - bill law.

Exists two types of bills:

1. simple a bill of exchange is a security certifying the unconditional obligation (promise) of the debtor to pay the amount of money specified in it to the holder of the bill after a certain period of time;
2. translated a bill of exchange is a security document that certifies an offer to the debtor to pay the amount of money specified in it to the person designated in it after a certain period.

Check- a security document certifying a written order from the drawer of the check to the bank to pay the recipient of the check the amount of money specified in it during the period of its validity. A check is a type of bill of exchange that is issued only by a bank. The features of a check are that, firstly, it expresses only settlement functions and does not participate in transactions as an independent property (you cannot buy a check on the secondary market, you cannot pawn it, transfer it to management or lend it out); secondly, the payer of the check is always a bank or other credit institution that has a license to carry out such operations; thirdly, the check does not require the payer’s acceptance, since it assumes that the drawer has deposited the necessary amount of money with the payer.

Bank certificate- a security that is a freely negotiable certificate of a monetary deposit (deposit for legal entities, savings for individuals) in a bank with the latter’s obligation to return the deposit and interest on it after a specified period in the future.

A bank bearer savings book is, in fact, a type of bank certificate (along with deposit and savings certificates).

Bill of lading- this is a security, which is a document of a standard form accepted in international practice, issued by the carrier of sea cargo or his authorized representative to the owner of the cargo or his representative. This is a maritime document of title that certifies: the fact of concluding a contract of carriage; the fact of acceptance of cargo for shipment; right of disposal and right of ownership of the holder of the bill of lading for the cargo; the holder's right to possession and disposal of the bill of lading. A bill of lading is an unconditional obligation of the sea carrier to deliver the cargo to its destination in accordance with the terms of the contract of carriage.

Mortgage- this is a registered security that certifies the rights of its owner in accordance with a mortgage agreement (real estate pledge) to receive a monetary obligation or the property specified in it.

Investment share- a registered security certifying its owner’s share in the ownership of the property constituting a mutual investment fund.

The listed types of securities, characteristic of countries with highly developed market economies, are not exhaustive, and therefore it can be predicted that in the future the number of types of securities permitted by Russian legislation will increase.

According to the degree of risk, securities are conventionally divided into risk-free and risky.

Risk-free- these 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, according to the degree of risk, are usually divided into low-risk (these are usually government securities), medium-risk (these are usually corporate bonds) and high-risk (these are usually shares). There are also higher-risk market instruments than ordinary stocks and bonds.

In turn, each type of basic securities is divided into subtypes, etc.

In addition to the listed types of securities, which can be called basic, or primary, in world practice there are securities that are based on primary ones, and therefore are considered derivatives in relation to them.

Derivatives- those based on some price asset. These can be the prices of goods (usually exchange goods: grain, meat, oil, gold, etc.); prices of major securities (indices of shares, bonds); foreign exchange market prices (exchange rates); credit market prices (interest rates), etc. Derivative securities certify the right or obligation of an investor to sell or buy a certain amount of an underlying asset (currency, stocks, bonds, gold, etc.) at a certain time or at a certain price.

A secondary, or derivative, security is a security that provides its owner not directly with any property rights, but with rights to any underlying securities and, through them, to property rights.

Derivatives, or secondary securities, include securities based on stocks and bonds: depositary receipts, stock warrants, options, forwards, futures, rights, etc.

Depository receipt- this is a security indicating ownership of a certain number of shares of a foreign issuer, but issued for circulation in the investor’s country; This is a form of indirect purchase of shares of a foreign issuer.

Stock warrant- this is a security that gives its owner the right to buy from a given issuer a certain number of its shares (bonds) at a price set by him during a period of time specified by him.

The essence of an option is to formalize a contract for the right to buy (call) or sell (pull) a certain number of securities. The buyer of the option pays the seller a reward (premium). The buyer of the option may or may not exercise the purchased right. Option holders are not limited to maximum possible prices and expiration dates and can take advantage of emerging market trends.

Options give their owners the right, but, unlike forwards and futures, they do not impose an obligation to buy or sell any assets, usually currencies, commodities, shares, etc. An option provides a choice, hence the name. Otherwise, an option is similar to a futures.

The most common options are calls and pulls. A currency call option guarantees the person who acquired it the right (but not the obligation) to buy a currency at a certain point in time at a certain rate, and a pull option guarantees the right to sell on similar conditions.

Since each right has its own price, the buyer of the option must pay the seller a certain amount, called the option premium, because you cannot get value without paying for it.

Options trading has an established terminology. The price that the company that purchased the option will have to pay is called the exercise price of the option, and the period for which the option is issued is called the exercise date (maturity date) of the option.

The intrinsic value of an option is the difference between the spot market price and the strike price.

Options can be freely traded on the market, and this is where their market price is determined. Buyers of options are willing to pay more than the intrinsic value of the options because they are likely to make greater profits if exchange rates rise, while the potential losses if exchange rates fall are limited by the price of the option itself. An option premium is the difference between the market price of an option and its intrinsic value.

Options are widely popular among currency speculators because they limit losses but not potential gains. Option sellers offer them because they believe that the premiums they receive from the option are sufficient to offset the risks.

Options trading is usually organized by specialized exchanges. Options are traded not only on stock exchanges, but also on over-the-counter markets. The difference between stock trading, as usual, is trading only standardized options.

The full definition of a stock option includes several basic characteristics:

• name of the asset;
• option type (call or pull);
• option price;
• the date of its execution.

There are two types of calls and pulls: European and American. A European option can only be exercised during a very limited period around the expiration date, while an American option can be exercised at any time before the option expires. These terms indicate only the origin of this type of option. Both types are used in both America and Europe.

Option contracts can also be concluded outside of exchanges. In this case, they resemble forward contracts. The buyer of the option, of course, pays the seller the option premium for the rights granted to him.

Complex options - caps, floors, collars, participation caps and cap tions differ from basic options in that they operate for a long time and are multi-period options. These new financial products have been successfully used over the past decade to hedge interest rate risk. However, the potential scope of their application is much wider.

Caps are multi-period options that can be used to hedge against increases in interest rates (or currency rates) in the long term. Caps are bought by companies that want to insure themselves against an increase in the interest rate above a certain value. They are sold by cap dealers, which are usually banks. The dealer can sell and buy caps, making a profit from the difference in sale and purchase prices.

The floor is a multi-period option, much like a cap. The difference is that in this transaction the dealer and the client company agree not on a “ceiling”, but on a lower limit - “floor” (from the English floor, hence the name of the transaction).

Many firms, such as insurance and financial services companies, need to hedge the risk that benchmark rates, which are also often LIBOR, fall below some level. They prefer to buy floors from a dealer to insure themselves against the risk of too large and prolonged decline in rates.

Currency caps and floras are organized in a similar way.

Collar is a combination of cap and floor. By concluding a collar contract, the company insures itself simultaneously against the risks of too high and too low rates. Of course, you can buy a cap and floor separately, but it is more convenient to do the same using a collar.

There are also more complex option-type financial instruments. An example of a mixed option is a participation cap. It is used when a company needs a cap, but does not want to immediately buy the cap and pay a fairly large premium for it. In this case, the company can enter into a participation cap agreement, in which the dealer pays for the reference rate exceeding the “ceiling”, as with a regular cap, but does not charge a cap fee. Instead of this one-time payment, the client company pays the dealer a portion of the amount for the fact that the reference rate falls below the “ceiling”. This means that if the reference rate is higher than the “ceiling”, the dealer pays, if it is lower, the client pays the dealer.

Another example of a complex option is a cap, which is an option on a cap. It is used when a firm needs a long-term cap but is not willing to buy it immediately. For example, the deal that the cap provides has not yet been decided upon. Agreeing on the terms of the main transaction requires, say, another three months, and now favorable conditions are emerging for the purchase of a cap. After three months, cap rates may rise too high or the cap price may increase. Then the company can buy the right to purchase the cap in three months, i.e. purchase a cap option. Such a transaction is called a captive transaction.

Swap is an exchange of assets between two counterparties on mutually beneficial terms. Depending on what is being exchanged, there are currency, interest rate and commodity swaps.

A swap can be used in all cases where two counterparties wish to exchange one asset for another. For example, it is profitable for a company selling oil to sell it at a fixed price, say, 22 dollars. per barrel, regardless of market fluctuations. At the same time, it is profitable for a regular consumer of oil and petroleum products to buy oil all the time at the same price - 25 dollars. per barrel. Let's say it is known that the market will fluctuate for a long time between 20 and 27 dollars. per barrel. Then the swap dealer can buy oil at a fixed price of $22. per barrel from the oil seller and sell it to the consumer for $25. per barrel. If the price drops to $20. per barrel, the dealer buys oil on the free market and pays an additional $2 per barrel to the oil seller. But he compensates for them by selling oil to the consumer for the same 2 dollars. per barrel is more expensive than it was bought on the free market. Thus, the dealer makes a profit in any case.

By analogy with captions, swap options were developed, called swaptions. Their essence is the same as that of captions. Options can be concluded on interest rate, currency and commodity swaps. A client who has purchased a swaption has the opportunity to delay the time of concluding a swap contract. He acquires the right to the swap and gains time during which the terms of the swap can change. If they change for the better, the owner of the swaption enters into a new swap agreement, and the option premium disappears. If conditions on the swap market change for the worse, a swaption gives the right to enter into a swap agreement on the same, more favorable terms than now.

Forex forward is a contract under which two parties undertake to exchange a certain amount of currencies at an agreed time in the future. Since the number of currencies exchanged is determined in the contract, the forward exchange rate is easily calculated, equal to the ratio of the amounts exchanged in two different currencies. The forward contract fixes:

• number of currencies exchanged;
• currency exchange date;
• forward exchange rate.

Forward contracts are used to reduce uncertainty and therefore risk. Risks by themselves never disappear. They can only be shared with someone, sharing at the same time the profit from the transaction. Typically, the company shares the risk and profit with the bank. To understand the bank’s interest in this transaction, it should be taken into account that quite a lot of organizations are approaching it with proposals to conclude similar forward contracts. Typically, banks enter into forward contracts for a period of up to one year, but recently there has been a tendency to increase the terms of forwards and there are already numerous examples of contracts with a term of 6-7 years.

An important motive for concluding a forward contract is the desire to insure your business against the risks of changes in the exchange rate.

In developed economies, violation of contract terms, as well as refusal of governments from their obligations, is practically impossible. That is why, in developed countries, forward contracts, like derivative instruments, serve as effective protection against various risks.

Hedging- an important, but not the only incentive for concluding forward contracts. A significant portion of contracts are concluded for the purpose of obtaining speculative profits. A currency speculator, based on market analysis, anticipates the movement of exchange rates and tries to enter into contracts with banks so that, upon expiration of the contract, it is possible to buy currency under a forward contract at a price lower (or, conversely, sell it at a price higher) than the spot price -market established at this moment. Currency speculators enter into many forward transactions; without speculators, hedging options would be very limited. It is speculators who provide liquidity to most markets.

The supply and demand for forward contracts by hedgers and speculators create the equilibrium forward rate - an estimate of the future exchange rate.

With the growth in the number and volume of forward contracts, which are carried out through the intermediation of banks, participants in the forward market have a natural desire to organize trading of standardized and securities forward contracts on the exchange. Such trading is usually called futures trading, and the corresponding securities are called currency futures.

Futures- this is a contract drawn up in a certain way for the purchase of a certain number of securities during a specified period at a base price, which is fixed at the conclusion of the contract. Futures contracts are strictly standardized and reflect the specific requirements of sellers and buyers of securities.

Forward and futures contracts are the most common and effective tools for managing operational currency risks. They relate to fixed-term contracts, i.e. must be completed within a strictly specified time frame.

A futures contract can be thought of as a standardized and securitized forward contract.

Futures differ from forwards in the following important ways:

1. futures are standardized contracts that are traded on specialized exchanges, and forwards are an over-the-counter instrument;
2. All terms of futures contracts, except the price, are determined by the exchange. Forward contracts are concluded between counterparties, who determine their terms by mutual agreement;
3. Unlike forwards, futures contracts are impersonal. The exchange stands between the seller and the buyer, taking care of clearing settlements;
4. Futures trading is usually regulated by government agencies, but forwards are not.

To ensure that no one can refuse their obligations, all participants in futures trading make a guarantee contribution to a special clearing association of the exchange, which must be replenished if necessary and maintained at a certain level.

The exchange summarizes the results every day and makes clearing settlements (mutual settlements) between trading participants at the end of each exchange day. Profits or losses, called variation margin, are transferred to the accounts of long and short traders, adding to or subtracting from the amounts available in their accounts.

Futures trading is conducted not only in major currencies, but also in many exchange commodities (grain, sugar, metals, etc.), shares of leading corporations, liabilities, interest rates, various stock indices, etc. The essence, motives and basic mechanisms of futures trading remain unchanged.

On the stock market there is a specific object of purchase and sale, a product of a special kind - securities. A security serves as a representative of real capital, confirms the right of its holder to property in the form of property or a sum of money. It is a property title, a special form of capital. Capital expressed in securities is called fictitious. Its movement is separate from the movement of real capital. This is manifested in the dynamics of the market value (market price) of securities, which is formed under the influence of supply and demand and is influenced by many factors that have nothing to do with the movement of real capital. Currently, in a number of countries, shares are circulating that have no par value, which most clearly indicates the independent existence of fictitious capital.

In general, a security is a document certifying the right of ownership or a loan relationship, providing for the receipt of income in the form of a dividend or interest and the possibility of transferring the rights secured by this document to other persons. Such a document defines the relationship between the issuer and the investor.

All the requirements of a classical security are met by the so-called issue-grade securities, which are characterized by the following features:

establish a set of property and non-property rights that are subject to certification, assignment and unconditional implementation;

posted in releases;

have equal volumes and terms of exercising rights within one issue, regardless of the time of acquisition.

These features emphasize the essence of issue-grade securities as exchange-traded goods. These primarily include stocks and bonds.

A share is an issue-grade security that secures the rights of its owner (shareholder) to receive part of the profit of the joint-stock company in the form of dividends; to participate in the management of a joint stock company; for part of the property after the liquidation of the company. A bond, as an issue-grade security, secures the holder's rights to receive from the issuer within a specified period its nominal value and the percentage of this value fixed in it.

Shares are issued only by joint stock companies and are corporate securities. Reflecting the share of participation of their owner in the capital of the corporation, they are considered equity securities. Bonds can also be government bonds if they are issued by the state. In both cases, they relate to debt securities, fixing the amount and terms of the issuer's debt. It is shares and bonds of corporations and government debt obligations that provide the opportunity to make long-term investments, and therefore can be called investment. These are capital market instruments. Such types of negotiable instruments as commercial or financial bills, checks, bills of lading and warrants, classified as securities under Russian law, as well as short-term savings and certificates of deposit, are money market instruments. They can be classified as auxiliary securities, considering equity securities to be the main ones.

Securities differ based on the ownership of the rights they certify. Registered securities are issued in the name of the owner; the exercise of the rights secured by them and their transfer require identification of the owner. A register (list) of owners is maintained, so information about them is available to the issuer. The exercise of rights under bearer securities does not require identification of the owner; their transfer to another person occurs by simply delivering the security to him. Rights under an order security are transferred by means of an endorsement. If the rights secured by a security are confirmed by a document duly executed and issued by the issuer, it is documentary; certification of rights is carried out on the basis of records in special accounts in the depositary. For uncertificated (or non-cash) securities, the grant and transfer of rights are recorded in the registration document and are reflected in the registry system or in the depository.

Depending on the presence of restrictions on circulation, securities are marketable (in the absence of restrictions) and non-marketable if the investor can sell them only to the issuer. Issue-grade securities serve as tools for attracting financial resources for the issuer, and for the investor as objects for investing funds that generate income in a certain type and volume. Thus, the issuer can attract sufficient funds only by ensuring the implementation of the investor’s goals. Successful placement of the primary issue and subsequent issues depends on achieving a balance of interests of the issuer and investor.

As is known, government securities are issued to cover the state’s temporary need for borrowed funds to implement certain government policy goals and are used for monetary regulation of the economy. As the most reliable debtor, the state ensures exceptionally high reliability of its securities; they are classified as risk-free assets. Consequently, their profitability may be low, and as a tool for raising capital, securities are quite cheap for the state, therefore they are used very widely, remaining an attractive investment object for all groups of investors.

Table 1

Classification of securities

Corporate securities are an instrument of external financing of joint-stock companies (corporations) in the process of forming a rational capital structure and managing it within the framework of the chosen financial strategy. The efficiency of a joint stock company and the possibility of generating income are inevitably determined by the existence of business, financial and other types of risks. Therefore, corporate securities are assessed as high-risk assets. This is taken into account when assessing their value. The return investors expect from investing in corporate stocks and bonds is related to their level of risk.

The set of investment properties of any security is determined by the type and scope of rights it provides. The combination of rights in various combinations makes it possible to take into account the diverse interests and expectations of investors and determines the diversity of securities. Let's look at this in more detail using the example of shares of a joint stock company.

The initial formation of the corporation's equity capital is provided by shares. All rights to shares are exercised in full in an ordinary (or simple) share, which:

secures the right to receive income in the form of a dividend, the amount of which is not guaranteed, as is the receipt itself;

allows you to claim part of the property upon liquidation of the company.

In order to attract funds from investors who want to limit the risk of their investments compared to ordinary shares, investors are offered preferred shares that limit them in some rights by expanding others. Preferred share:

brings guaranteed income in the form of a fixed amount;

allows you to claim part of the property upon liquidation of the company until the claims of the owners of ordinary shares are satisfied.

If some of the rights on preferred shares are not enforced (for example, there is not enough profit to pay an income), these rights are offset by others, and the owners may receive voting rights. The class of preferred shares is divided into many types. Convertible shares can be exchanged for common stock or other preferred stock. Preferred shares with the right to participate under certain, pre-agreed conditions provide the opportunity to claim a portion of additional profits and participate in management. For cumulative preferred shares, in the event of non-payment of dividends, they are accumulated. Refundable shares of this class may be presented to the issuer for redemption.

Using corporate bonds, the borrowed capital of a joint stock company is formed. Bonds have a limited circulation period and pay a fixed income in the form of a percentage of the face value. They do not provide voting rights. Bonds can be secured by collateral in the form of tangible assets or securities. This increases their reliability and a lower interest rate can be paid on them, which reduces the cost of attracted resources for the issuer. Corporate bonds can be convertible. They are exchanged for shares if their market price increases, bringing benefits to the holder. Special funds are created to guarantee timely repayment of bonds. Such bonds are called funded. In order to take into account the general economic situation, contractible and expanding loans are offered, which make it possible to change the maturity of securities issued within the framework of these loans. There are corporate bonds with a fixed, floating or evenly increasing coupon rate. For the general characteristics of bonds, it is important that they come in both interest-bearing (coupon) and zero-coupon (or zero-coupon).

To achieve investment goals (receiving high income or preserving the value of assets) with minimal losses, owners of funds must diversify their investments in securities. The totality of securities at the disposal of an investor is a portfolio of securities. The purpose of portfolio formation and management is to achieve the optimal ratio of the level of profitability and investment risk from the point of view of a particular investor. The process of managing a securities portfolio requires prompt decision-making to change the portfolio structure based on information about the state of the stock market. Such information can be obtained using traditional methods of fundamental and technical analysis, which allows one to make a forecast of the dynamics of prices for stock assets.

As part of the fundamental analysis of the stock market, factors external to the market that determine the market value of securities are studied. These include indicators of the state of the national economy, the industry of the issuer itself, which to the greatest extent reflect the development prospects of the latter and serve as a guideline for making decisions on the purchase or sale of securities of this issuer. Technical analysis is the study of fluctuations in price levels and sales volumes of a particular asset or the market as a whole in order to track the moment the trend changes to the opposite one. The arrival of such a moment is a signal to buy or sell securities. The dynamics of fluctuations are described graphically, and the appearance of the graph dictates the assessment of the future state of the market.

Modern methods of managing a securities portfolio are based on the use of such methods for selecting assets that make up the portfolio, which make it possible to estimate the expected values ​​of profitability and risk based on the analysis of statistical information. In the practice of managing a securities portfolio, derivative financial instruments (derivative securities, or derivatives) are also used, which represent an agreement (contract, or agreement) for the delivery of an asset in the future at a pre-agreed price. Thus, this is a derivatives contract, a derivatives market instrument. If classic securities are based on the property right to a share in capital or an amount of money and receiving income from investments in these assets, then derivatives are based on the right to receive income from changes in the price of an asset. The asset underlying the futures contract is called the underlying.

When concluding a conventional contract for the purchase and sale of securities on the spot market, the trader is forced to take into account the risk of price changes. This risk can be insured (hedged) by concluding a futures contract for the same securities, i.e. already on the derivatives market. In this case, possible losses from price changes in the regular market will be offset by income from price changes in the futures contracts market. You can also protect yourself from unwanted changes in securities prices in the portfolio structure by concluding a futures contract. Derivative financial instruments include forwards, futures, options contracts and swaps. They differ in the degree of standardization and the peculiarities of trading in the contracts themselves, the purchase and sale of which is so intense that the derivatives segment of the financial market surpasses all others in volume.

Derivatives provide the opportunity to construct new strategies for using securities market instruments for hedging and speculation - insuring price and interest risks and generating additional profit. This modern direction of development of the stock market is called financial engineering.

This direction can be implemented in conditions of a significant increase in the turnover of the Russian securities market, which should be facilitated by the growth of capitalization of Russian joint-stock companies.

Until the 1980s, there was no securities market in Russia, except for the placement of government bonds, where in most cases the buyer was forced to act as a buyer. In 1985-1987, as a result of the policy of transition to market relations, shares appeared in the country's economy. Their appearance can be considered the beginning of the revival of the securities market. At first, labor collective actions appeared and were distributed among the enterprise’s employees. They were issued in order to increase workers’ interest in the results of their work and attract additional resources for the technical re-equipment of production. Following the shares of labor collectives, there appeared shares of enterprises that could be sold externally, but only to legal entities, and then shares, the sale of which was allowed to individuals, including foreign ones.

Legally, the concept of a security is introduced in Art. 142 of the Civil Code of the Russian Federation (Civil Code of the Russian Federation) and reads as follows: “A 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 its presentation.” In market conditions, its participants enter into agreements with each other numerous relationships, including those regarding the transfer of money and goods. These relationships are fixed, formalized, and consolidated in a certain way. A security is a special commodity that circulates on a special, its own market - the securities market, but has neither real nor monetary use value, i.e. is neither a physical product nor a service. The security performs a number of socially significant functions:

• * redistributes funds (capital) between: industries and spheres of the economy; territories and countries; groups and segments of the population; population and economic sectors; population and state, etc.;
• * 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.;
• * provides income on capital and (or) return of capital itself, etc.

Securities existing in modern world practice are divided into two large classes:

• * Class I - basic securities;
• * Class II - derivative securities.

Basic securities are securities based on property rights to any asset, usually goods, money, capital, property, various types of resources, etc.

A derivative security is a non-documentary form of expression of a property right (obligation) arising in connection with a change in the price of the exchange asset underlying this security. Derivative securities include: futures contracts (commodity, currency, interest, index, etc.) and freely traded options. There are classifications of securities and classifications of types of securities.

Classification of securities is the division of securities into types according to certain characteristics that are inherent to them. Classifications of types of securities are groupings of securities of the same type; This is a division of types of securities into subtypes. In turn, subspecies can, in some cases, divide even further. Each lower classification is part of one or another higher classification. For example, a share is one of the types of securities. But a share can be ordinary or preferred. An ordinary share can be single-voted or multi-voted, with or without par value, etc. The main types of securities in terms of their economic essence (they play the role of financial investments) are: shares, bonds, bank certificates, bills, checks, bills of lading, warrants, futures contracts, fixed-term securities, perpetual securities, investment, non-investment. Now let's look at each of the securities in more detail.

Shares certify the shareholder's right to a share in the capital of a joint-stock company and to receive income (dividends) as a result of the activities of this company. This is a single contribution to the authorized capital of a joint-stock company with the ensuing rights. The amount of the share is the shareholder's share in everything that the joint-stock company owns, his right to part of the capital, property, and income. Shares have been around for as long as a joint stock company, although they can go through many different owners. The shareholder does not have the right to return the shares to the issuer who issued them, but can only sell them on the secondary market.

The issue of shares is carried out in the following cases: during corporatization, that is, when establishing a joint-stock company; to form the authorized capital; when transforming an existing company into a joint stock company and when additionally mobilizing capital to increase the authorized capital.

A bond is a debt security that reflects a loan relationship between the investor and the issuer. Investors who purchase bonds are creditors. The owner of bonds has the right to receive their full value and predetermined income. Bonds are issued by both private and government corporations. A written monetary obligation of a debtor to repay a debt is called a bill of exchange, the form and circulation of which are regulated by special legislation - bill law;

A warrant can exist in two forms: a) a document issued by a warehouse and confirming ownership of the goods located in the warehouse; b) a document giving its owner a preemptive right to purchase shares or bonds of a company for a certain period of time at a set price;

A standard exchange agreement for the purchase and sale of an exchange asset after a certain period in the future at a price established at the time of the transaction is called a futures contract

Future securities are securities that have a lifespan established at the time of their issue. Typically, fixed-term securities are divided into three subtypes:

• * short-term, with a maturity of up to 1 year;
• * medium-term, having a maturity of more than 1 year within the range of 5-10 years;
• * long-term, having a circulation period of up to 20-30 years.

Perpetual securities are securities whose circulation period is not regulated in any way, i.e. they exist “forever” or until maturity, the date of which is not indicated in any way when the security is issued.

The classic form of existence of a security is a paper form, in which the security exists in the form of a document. The development of the securities market requires the transition of many types of securities, primarily equity ones, to a non-documentary form of existence.

Investment (capital) securities are securities that are an object for capital investment (shares, bonds, futures contracts, etc.).

Non-investment securities are securities that serve monetary settlements in commodity or other markets (bills, checks, bills of lading).

Securities market instruments are securities. In countries with market economies, there are a large number of types of securities - stocks, bonds, as well as derivatives from them: options, futures contracts, mutual fund securities, etc.

In the Russian Federation, securities include: shares, bonds, bills, checks, deposit and savings certificates, bills of lading.

In accordance with the legislation of the Republic of Uzbekistan, the circulation of such types of securities as shares, bonds, treasury bills, certificates of deposit, derivative securities, and bills is provided. The circulation of securities means their purchase and sale, as well as other actions related to their movement.

Securities- these are monetary documents certifying property rights or loan relations between the person who issued them and their owner, providing for the payment of income in the form of dividends or interest and the possibility of transferring rights arising from these documents to other persons.

Securities can take the form of blanks, certificates or account entries and are used for settlements and as collateral for loans.

Securities can be registered or bearer.

Securities are registered if the implementation of property rights associated with their owner requires registration of the owner’s name by the issuer or, on his behalf, by an organization engaged in professional securities activities. The transfer of a registered security from one owner to another is reflected by a corresponding change in accounting entries.

Securities are considered bearer documents if the presentation of the security is sufficient to exercise the property rights associated with their ownership. Bearer securities are freely circulated.

Promotion- this is a security that certifies the right of its holder (shareholder) to receive part of the profit of the joint-stock company in the form of dividends, participate in the management of the affairs of the joint-stock company and receive part of the property remaining after its liquidation.

Shares are divided into:

- ordinary- certify the fact of transfer of part of the capital to the joint-stock company, give the right to participate in the distribution of net profit after payment of dividends on preferred shares, and also guarantee the right to participate in the management of the company;

- privileged- bring a fixed dividend and have an advantage over ordinary shares in the distribution of profits. However, these shares do not provide voting rights in the management of the company;

- personal names- they indicate the name or designation of the share holder, which is entered in the register (book of owners) of the joint-stock company. The sale of such shares is possible only upon registration of the transaction with the management body of the company and its reflection in the corresponding register of shareholders;

- to bearer- its owner is not registered to exercise property rights. In this case, only their presentation is sufficient. Bearer shares are freely tradable.

The shares indicate their par value. However, the sale is carried out at an exchange or exchange rate price, which may differ from the nominal price under the influence of supply and demand.

The stock price is calculated using the formula:

If, for example, the dividend rate is 18%, and the loan interest rate is 12%, then the share price should be 150% of its nominal price, i.e. a share with a nominal value of 1000 rubles. should cost at least 1500 rubles.

The specified ratio of dividend rates and loan interest underlies the formation of the market price of shares, but does not determine it completely. The market price of shares is greatly influenced by the reputation of the joint-stock company, the financial performance of its activities, and the ratio of supply and demand in the securities market. Often, an overvalued price of securities is the reason for its sharp, even catastrophic decline: using the opportunity to generate income due to a significant difference between the market and nominal price of shares, many shareholders seek to sell them faster and more profitably. In this case, supply may exceed demand and the stock price will fall. And vice versa, under the influence of advertising and other factors, a rush demand for shares may arise, and accordingly the stock price increases sharply, which in this case does not reflect their real value, determined by objective factors, primarily the results of the company’s economic activities. For a joint-stock company selling shares on the securities market, a high share price, exceeding their nominal price, is a source of share premium, which (minus the costs of selling or placing shares) is directed to the company's reserve fund.

Historically, shares were printed paper forms with a high degree of protection against possible counterfeiting. Later, a non-cash form of securities circulation appeared. They began to be formalized in the form of account records on magnetic and other storage media.

The next important instrument of the securities market are bonds.

Bond- a debt obligation of a company in the form of a security that gives its owner the right to pay the nominal amount and interest within a specified period. Interest must be paid on time, regardless of the profit and financial position of the company. Thus, the issue and sale of bonds are a source of borrowed capital for the company.

Bonds can be issued ordinary and winning, interest-bearing and non-interest-bearing (target), freely circulating or with a limited circle of circulation.

Currently, one of the attractive sectors of the financial market is the government securities market.

It was with the issuance and circulation of state stock values ​​that the historical development of world stock markets began. Thanks to government securities, the formation of all infrastructure elements that ensure the circulation of stock values ​​is intensively underway. In countries with developed market economies, the government securities market plays an important role in financing the state budget, maintaining the liquidity of the financial and banking system, and regulating economic activity. World practice has accumulated a wealth of experience in market-based management of public debt through the use of various types of public financial instruments that meet the interests of both the population and collective investors (banks, insurance and financial companies, industrial and trading firms). At the same time, it is government securities that have been and remain the most reliable and most liquid stock values. A significant advantage of investing in these securities is the availability of significant tax benefits provided by the state.

Issuers of government securities are governments, state credit and financial institutions, and local authorities.

Government securities are divided conventionally into short-term (from 3 months to 1 year), medium-term (over 1 year, but not more than 10 years), long-term (over 10 years) and perpetual.

In the practice of world securities markets, the following methods of paying income on government debt obligations are used:

Establishing a fixed payment percentage;

Application of stepped interest rates;

Using a floating interest rate;

Sale of government securities at a discount (discount) against their nominal value.

The revival of the stock market in Russia began in 1991. Before that, the only securities known were three percent government loan bonds and lottery tickets. However, in recent years, the development of the Russian securities market has proceeded at a rapid pace, mainly due to the formation of the government debt market, which has become one of the main segments of the financial sector of the country's economy.

The Russian government issues a variety of debt bonds.

State long-term bonds (GDO) were issued by the Ministry of Finance in 1992 in the form of bonds with a nominal value of 100 thousand rubles. each. The loan maturity is 30 years. The bonds are placed with a coupon yield of 15% per annum with annual interest payments.

Government short-term zero-coupon bonds (GKOs) are used to short-term finance the current budget deficit. Their issuer is the Ministry of Finance of the Russian Federation, the guarantor of timely repayment of the loan is the Central Bank of Russia.

The issue of state bonds is carried out periodically in the form of separate issues, currently - twice a month for a period of 3 and 6 months or 1 year. The par value of the bonds is 1 million rubles. The placement of debt obligations is carried out in the form of an auction. Bonds are sold at a discount, that is, at a price less than par, and are redeemed at par. State bonds are issued in paperless form.

In order to implement the policy of the Russian government for non-inflationary financing of the state budget, federal loan bonds with variable coupon income (OFZ with a circulation period of more than 1 year with a par value of 1 million rubles) were issued. Income on OFZ is paid in the form of interest on the nominal value once a quarter.

To involve temporarily free funds of small investors into the economy, bonds of the state savings loan of the Russian Federation (OSZ) were issued. OSZ are issued for a period of 1 year with a nominal value of 100 thousand rubles. and 500 thousand rubles. The volume of issue of the state savings loan of the Russian Federation of the first series is 1 trillion rubles. The bonds pay coupon income 4 times a year. The most successful development in Russia and Uzbekistan is the periodic issue of three- and six-month GKOs. Paperless electronic technologies are used for all types of transactions with them. GKOs are distinguished by high reliability and liquidity. In Uzbekistan, the issue of state bonds has been carried out since 1996 in the form of monthly issues for a period of three months.

The municipal bond market is of particular interest in the securities market. The primary purpose of local government debt issuance is to revitalize regional securities markets.

One of the tools for attracting free funds to the budget and settling budget debts with enterprises is treasury obligations (TB). The issuer of treasury bonds is the Ministry of Finance of the Russian Federation. Obligations are issued in series, most of which last 120 days. KOs exist in paperless form. The placement and circulation of these debt obligations is carried out by authorized depository banks. The advantage of Treasury bonds is the ability to pay off these obligations by offsetting tax payments to the federal budget.

The most expensive government security in the Russian Federation is the Gold Certificate, issued for the purpose of accumulating funds in the budget. The issuer is the Ministry of Finance of the Russian Federation. The denomination of the certificate is 10 kg of 0.9999 purity gold. The yield on the certificate is a derivative of three basic values: the price of a troy ounce of gold on the London Metal Exchange, the official exchange rate of the ruble to the US dollar and the approaching date for payment of the next quarterly interest.

Thus, government securities are one of the main sectors of the Russian stock market. The largest in terms of trade turnover and sales dynamics should be considered government short-term bonds and treasury bonds. For example, in 1994, out of 27.6 trillion rubles. the total volume of issue of government securities is 20 trillion rubles. accounted for GKO.

Currently, the policy of the Ministry of Finance of the Russian Federation is aimed at improving the structure of government borrowing, namely the introduction to the market of instruments with longer maturities and, at the same time, with a reasonable profitability, ensuring attractiveness for investors.

Government securities are the most liquid and relatively reliable; income received from them is not subject to income tax. However, next to the government securities market there should be other alternative markets that provide investment primarily in production.

All investors - individual and institutional - strive to achieve certain goals by placing their savings in certain types of securities. The main goals of investors are: safety, profitability, growth and liquidity of investments.

Under security stability of income generation is understood. Security usually comes at the expense of profitability and investment growth. The safest investments are in government bonds, which are ensured by the solvency of the state. Treasury notes and other short-term government debt are also attractive from this point of view precisely because of the proximity of the maturity date. Treasury notes virtually eliminate risk for the investor. The riskiest, for example, may be investing in the shares of some young science-intensive company.

If an investor seeks to maximize return on investment, then he will most likely have to sacrifice safety, since corporate securities with a low investment grade are more profitable. Profitability also depends on other factors. The optimal combination of security and profitability is achieved by careful selection and periodic revision of securities.

Stocks and bonds have different investment qualities, i.e., different attractiveness to investors. Bonds, as a rule, provide greater safety of savings than stocks, and therefore are more attractive to cautious and conservative people. This especially applies to government bonds, which are backed by the entire economic weight of the state and its enormous solvency. However, bond holders typically miss out on the opportunity that equity holders enjoy to multiply their wealth and quickly increase their income. However, owning shares is fraught with financial losses. Therefore, the shares are attractive to aggressive investors who are willing to take risks in order to receive high dividends. Shares and bonds can be mutually convertible, i.e. shares can, in certain cases, be exchanged for bonds and vice versa.

Latest investment goal - liquidity or marketability, securities, which means their quick and harmless conversion into money for the holder. Liquidity is not necessarily related to other investment objectives. It only means that at a certain price there will always be buyers who will take these securities.

Thus, we get the following picture.

Table 8

No security has all of the properties listed above, so trade-offs between investment objectives are inevitable. If the securities are safe, the yield will be low, because those who prefer safety will bid high and drive down the yield. There are no perfect securities.

“Reconciliation” of four investment goals is possible to a certain extent and is achieved by diversifying investments. Diversification is a means of reducing the risk of serious losses. Risk is reduced when capital is spread across many different securities. It is customary to limit investments in this type of securities to 10% of the total portfolio value. As the portfolio expands, this limit may drop to 5% or less. It is customary to include bonds, preferred and common stocks in the portfolio. This is called diversification by type of security. There is also diversification by economic sectors, regions and countries, and maturity (for bonds). When a portfolio reaches such a state that the investor achieves the desired “reconciliation” of investment objectives, it is said to be balanced.

As market relations and the securities market develop, bill circulation, the main instrument of which is the bill, will become an integral part of the market system in Russia. The main purpose of introducing bills is to solve the problem of non-payments without additional financial investments from the state.

Bill of exchange- a type of security that certifies the unconditional obligation of the drawer or another payer specified in the bill to pay a certain amount to the owner of the bill (bill holder) upon the arrival of the period specified in the bill.

A bill of exchange can be used to formalize settlement relations between business entities, trade loans, as collateral for a bank loan or loan, as a means of securing the obligations of a third party. A bill of exchange as a security refers to the property of an enterprise, which it can dispose of at its own discretion - sell, transfer, and so on.

Thus, a bill simultaneously combines the properties of securities, a debt obligation and a means of payment.

Bills of exchange can be simple, transferable, foreign exchange, or housing.

Promissory note- usually written out and signed by the debtor (in the accounting sense in the terms of business transactions - the buyer). The bill of exchange indicates the date and place of payment, the name of the recipient, the amount (amount) of payment, the place and date of the bill of exchange, the name and signature of the bill holder, i.e., the enterprise that issued the bill. The bill does not indicate the reason that prompted the issuance of the bill (for received goods, products or other transactions not related to concluded transactions, which is intended to reflect the abstractness and, therefore, the universality of the use of bills). Usually such an enterprise is called drawee.

Bill of exchange- usually written out and signed by the creditor, i.e. in the context of economic, commercial transactions - the supplier, in other words, the one who is owed a certain amount. Such a drawer is called drawer. A bill of exchange is a written order to the debtor (drawee) with a requirement to pay within the period specified in the bill the amount indicated on the bill to the drawer or to a third individual - the holder of the bill (remitee). It indicates the date and place of drawing up the bill, the name and signature of the enterprise that issued the bill.

The reliability of a bill is increased by a bill guarantee (avaal), by virtue of which a legal entity (avalist) assumes responsibility for the fulfillment of an obligation by any of the persons obligated under the bill.

The bill can be repaid before its expiration at the bank at a certain discount rate.

In order to speed up the introduction of bill circulation, the Ministry of Finance of the Russian Federation has now introduced bills of exchange of a single standard. This applies primarily to “commodity” bills of exchange used in payments between enterprises for the supply of products.

In order to speed up settlements in the national economy, strengthen payment discipline, and increase the financial responsibility of business entities, bills of exchange have also been introduced into the economic circulation of Uzbekistan. They are used as a promissory note for deferred payment and a means of payment for goods supplied (work performed, services provided) between economic entities of the Republic of Uzbekistan.

Thus, a bill of exchange, being a means of processing a loan provided in commodity form by sellers to buyers in the form of a deferred payment of money for goods sold, helps speed up the sale of goods and increase the turnover of working capital. As a result, the need of business entities for credit resources and funds in general decreases.

Certificates occupy a certain place in the securities market. Varieties of a certificate as a security are deposit and savings certificates.

Certificate of Deposit- a security indicating the deposit of the holder’s funds in a credit institution for a certain period of time for a certain remuneration. Before the deposit expires, they can be sold to the issuing bank or dealers at a discount.

Savings certificates- are issued through the system of savings institutions of Sberbank of the Russian Federation and distributed among small and medium-sized holders. These bonds can be bearer or registered.

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