One of these basic chains of knowledge about financial markets is the classification of securities, on which the correct and appropriate choice of financial instrument directly depends.

For both trading and investing purposes, it is very important to have an understanding of the origin of a security and its legal status, which are the main element of such a concept as the liquidity of a security, directly related to the definitions of “issue” and “issuer”.

First of all, a general description of a security must be given, which is a document that is equivalent to the value of a material object (goods, commercial relations and money) on the basis of an established agreement between persons using a security for business transactions.

As can be seen from this essential definition, one of the main components of a security is the concept of a contract.

This is actually the main feature of securities. Depending on who issued them, how the rights of the buyer (holder) of this security are ensured and on the basis of what agreements the rules for its circulation are established, the value of the security is determined as an element of trust between counterparties.

If, for example, a security is issued (issued) by a company that does not inspire certain confidence in the market, then it is natural that the market will evaluate its value as insignificant.

Or vice versa, if the security is issued by the government of a superpower (with a guarantee starting from banking system to an aircraft carrier group), then such a security will be in great demand.

Thus, it can be stated that an issue-grade security is a document confirming the property rights contained in it, issued for circulation in accordance with certain rules enshrined in the relevant agreements or legislative acts.

In order to clearly understand how an issue-grade security differs from others, one should focus on certain formal characteristics, using which one can draw a conclusion about the status of a financial instrument.

For this purpose, there is a certain characteristic of an issue-grade security:

1. Strict release procedure (emission) which is regulated by acts state power(represented by the Central Bank), including mandatory registration.
2. Carrying out the issue of securities as part of a certain package.
3. The issue occurs by placing it on open markets(in most cases on stock market exchanges) or public subscription through credit institutions. The concept of issue is revealed quite fully through the study of the national legislation of the country of circulation of securities.
4. Unlike non-equity securities, emission securities can have a non-documentary form of issue, such as options or futures contracts.
5. Issued Financial assets can be freely circulated both on and outside exchange platforms.

Main varieties

As mentioned above, issue-grade securities are financial documents that have the right to be issued by companies and organizations that have passed special state registration procedures and have the status of public entities.

Directly issued securities include:

• Shares of public companies and corporations whose shares have gone through the issuance process and can be traded both on stock exchanges and as part of normal commercial circulation.
• Corporate debt obligations. Issue-grade corporate securities are primarily bonds and some forms of promissory notes.
• Issue-grade debt securities in the form of bonds of state and municipal authorities. These financial instruments are designed to attract funds from investors for the purpose of implementing social significant projects, may have their own special form of issue.
  
• Derivatives. Issued order securities are, first of all, various types of options and futures, widely used for various trading operations (mainly for risk insurance or hedging operations).
• Some types of bills. Currently, the question: whether a bill is an issue-grade security is determined by the specific purposes and types of issue (issue). In practice, cases where a bill of exchange is an issue-grade security are quite rare.

This method of attracting debt financing is used, for example, by banks when a large package (in one tranche) of bills is issued to the market for the short-term repayment of their own obligations (for example, a cash gap, payment of claims or for an urgent repurchase of their own shares from the market).

The general concept of an issue and the procedure for carrying it out

The above types of issue-grade securities, shares and bonds (and their derivatives) are dominant in the securities market, since the issuance procedure itself involves a certain verification of the issuer (its solvency for debts, general financial condition and so on.).

IN general view placement of issue-grade securities is carried out through special and clearly regulated procedures determined by law:

1. The decision to issue is approved, for example, by the general meeting of shareholders, who make the decision by direct secret vote.
   

   This decision, formalized accordingly, is a necessary formal procedure for the preparation of the Prospectus.

2. Prospectus, audited and state registration, is a document that defines all the technical and legal aspects of the process.
3. Underwriting, the IPO procedure, is the issuance technology itself, which begins from the formation of client lists among potential investors to the placement of a block of shares on the stock exchange.
4. The entire placement process must undergo state registration, which is precisely the factor that determines the liquidity of a security, and therefore the level of confidence in it.

Since equity securities are a very important element financial system, then such a costly and thorough preparation of securities for entering the market is a guarantee that the work of this finely tuned structure will not be disrupted by the entry of low-quality (very risky) assets into the market.

At the end of this article, it makes sense to say a few words about the fact that equity and securities of other types and classes are effective tools capital management and its increase.

Investment operations of banks are reduced mainly to operations with securities. Securities are understood as specially executed financial documents, the presentation of which is necessary for the exercise of the right expressed in them. The specifics and patterns of the processes of primary and secondary circulation of securities are determined depending on their type.

1. Equity securities certify the owner’s right to a share in the capital of the enterprise. These include stock. IN Federal law“On the securities market” dated March 20, 1996. promotion is defined as “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 the joint-stock company and to part of the property remaining after its liquidation. The issue of bearer shares is permitted in a certain ratio to the amount of the paid-up authorized capital of the issuer in accordance with the standard established by the Federal Commission for the Securities Market.”

Based on the differences in the method of paying dividends, we can distinguish common and preferred shares, providing any benefits to their holders. The content and specific forms of realization of benefits are determined in the constituent documents. As a rule, these special benefits consist of a preferential right to receive dividends over ordinary shareholders. At the same time, the charter may provide for the absence of voting rights at the general meeting of shareholders for owners of preferred shares. Thus, the rights of their holders to participate in the management of economic activities are limited.

The rights of preferred shareholders can also be exercised in the possibility of receiving a preferred dividend, paid every year, in a predetermined proportion to the par value of the preferred share. In the event of insufficient distributable profits, the preference dividend is usually carried forward to the subsequent financial year and paid on a priority basis.

The most attractive preferred shares are for individual holders who have little money and have neither the time nor the opportunity to participate in the management process.

2. Debt securities certify the right to a specific monetary claim (but not the right of ownership). These include bonds, bills, checks and certificates of indebtedness.

Bond- an issue-grade security that secures the right of its holder to receive from the issuer a bond within the period specified by it, its nominal value or other property equivalent. A bond may provide for other property rights of its holder, if this does not contradict the legislation of the Russian Federation. Bonds can be bearer or registered, freely tradable, or with a limited circle of circulation.

One of the important characteristics of a bond is its maturity. This is the duration of the contractual agreement for this issue, after which the holder receives the value of the bond, that is, it is fully repaid. The maturity period can be very different, including perpetual types of bonds.

Bonds have nothing to do with profit. Interest must be paid even if there is a loss. Before the end of the maturity period, bonds, like shares, can be sold on a stock exchange or on the free securities market, and just like shares, their market price can be higher or lower than their nominal value.

Bill of exchange is a security certifying the unconditional monetary obligation of the drawer to pay upon maturity a certain amount of money to the owner of the bill. As a written promissory note of a strictly established form, a bill of exchange gives its owner the indisputable right, after the expiration of the obligation, to demand from the debtor payment of the amount indicated on the bill of exchange.

A bill of exchange can only be issued to legal and individuals registered on the territory of the Russian Federation or on the territory of another state that uses the ruble as the official currency. The bill cannot be exported to the territory of a state that does not use the ruble as an official currency.

For the entrepreneur providing the loan, a bill of exchange is not only a simpler, but also a more reliable way of repaying the debt. The bill can be used to defer or installment payment, that is, it is a kind of purchase on credit. For example, in a purchase and sale transaction, payment for goods can be partially made by transferring money in cash or using a bill of exchange. You can also issue a bill of exchange for the entire cost of the goods. Thus, payment is made not at the time of purchasing the goods, but after some time - buying on credit. By the time the bill is paid, the price of the goods may increase. Thus, the bill is convenient to use in conditions of rising inflation.

We will consider the remaining types of securities in less detail and will focus only on the definitions, since they do not have such a role in forming a portfolio of securities of a commercial bank. important as above.

By check A security is recognized that contains an unconditional written order from the drawer to the bank to pay the holder of the check the amount specified in it. The check must be presented for payment within the period established by law.

Various certificates are issued to attract additional funds. There are two main types of bank certificates: deposit and savings certificates.

Certificate of Deposit is a document that is a bank's obligation to pay off deposits placed with it, the right of claim for which can be transferred by one person to another. A certificate of deposit can only be issued to an organization that is a legal entity registered in Russia or in the territory of another state that uses the ruble as an official currency.

Savings certificate may be referred to as a document that acts as an obligation of the bank to pay out savings deposits placed with it.

3. Derivatives certify the right of their owner to purchase or sell primary securities. These include options and warrants.

Option is a security in the form of a contract concluded between two persons, one of whom writes and sells the option, and the other buys it and receives the right, within a specified period, to buy or sell other securities at a fixed price.

Warrant- this is a security, the holder of which receives the right to purchase securities at a set price for a certain period of time or indefinitely.

4. Commodity securities include such documents of title as bills of lading And warehouse receipts.

Bill of Lading a document of title is recognized, certifying the right of its holder to dispose of the cargo specified in the bill of lading and to receive the cargo after completion of transportation. It can be bearer, order or registered. When a bill of lading is drawn up in several original copies, the release of cargo according to the first presented bill of lading terminates the validity of the remaining copies.

Warehouse receipts can be simple or double.

A simple warehouse receipt is a bearer security, the holder of which acquires the right to dispose of a commodity by owning not the commodity, but the security.

Feature double warehouse receipt is that it consists of a warehouse receipt and a pledge certificate (or warrant), which can be separated from each other and circulate independently.

In addition, the listed types of securities may differ according to the following characteristics:

a) by release form:

- for documentary, that is, the owners of which are identified on the basis of presentation of a properly executed security certificate or, in the case of deposit, on the basis of an entry in the securities account;

- undocumented, the owners of which are identified on the basis of an entry in the system for maintaining the register of securities owners or, in the case of deposit of securities, on the basis of an entry in a securities account;

b) according to the form of certificate of ownership:

- to bearer- securities, the transfer of rights to which and the exercise of the rights secured by them do not require identification of the owner;

- personalized- securities, information about the owners of which must be available to the issuer in the form of a register of the owner of securities, the transfer of rights to which and the exercise of the rights assigned to them require identification of the owner;

- order- securities, the rights of the holders of which are confirmed both by the bearer of these securities and by the presence of appropriate inscriptions;

c) according to the form of placement:

- for emission- any security, including book-entry securities, which is simultaneously characterized by the following characteristics: placed in issues; establishes a set of property and non-property rights subject to certification, assignment and unconditional implementation; has equal volume and terms of exercise of rights within one issue, regardless of the time of acquisition of the security;

- non-emission- other securities that are not characterized by the characteristics listed above.

In addition, in the most general form, the classification of the main instruments of the securities market can be presented as follows. Depending on the nature of the transactions underlying the issue of securities, as well as the purposes of their issue, they are divided into stock(stocks, bonds) and commercial paper(commercial bills, checks, warehouse and pledge certificates). It is in accordance with this classification of securities that banking operations with them are divided into stock and commercial.

A bond is an issue-grade security that secures the right of its owner to receive from the issuer of the bond its nominal value or other property equivalent within the period specified in it. A bond may also provide for the right of its owner to receive a fixed percentage of the nominal value of the bond or other property rights. The income on the bond is interest and or discount Art. Bonds are issued for a certain period to attract additional financial resources.

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Lecture No. 2 -3

Types of securities

Let us dwell in more detail on the most widely used securities in the Russian economy.

1. Promotion 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 the joint-stock company and to part of the property remaining after its liquidation (Article 2 of the Law “On the Securities Market”). Only joint stock companies have the right to issue shares. Earnings per share, which is generated from the profits of the joint stock company (or other issuer) that issued the shares, is a dividend.

A share as a security has a number of characteristic properties unique to it. They are as follows:

* share is a title of ownership, i.e. the owner of the share is the owner of the joint stock company;

* the share does not have a circulation period, i.e. it is unlimited, it is limited by the life of the joint-stock company;

* shares can be split and consolidated. During a division (split), the number of shares increases (one share turns into several), their nominal value decreases while the amount of the authorized capital remains the same. During consolidation, the number of shares decreases, the par value increases, but the size of the authorized capital does not change;

* shares are characterized by limited liability, since the shareholder is not liable for the obligations of the joint-stock company itself;

* a share is characterized by indivisibility, i.e. joint ownership of a share is not associated with the division of rights between the owners, they together act as one person;

* the owner of the share has the right to withdraw his part from the total capital of the joint-stock company by selling it, transferring it to the legislature
way your shares.

The practice of attracting financial resources to joint stock companies has developed a large number of varieties of shares that satisfy a wide variety of investor needs. Shares vary depending on the issuer, the method of registration of shareholder rights, investment qualities, etc.

Depending on the subjects among whom the shares are distributed, there are: shares labor collective, shares of an enterprise, shares of a joint stock company. Shares of the labor collective are distributed only among employees of a given enterprise; shares of the enterprise are also distributed among other legal entities. They do not give their holder the right to participate in the management of the enterprise and are only a means of mobilizing additional financial resources. Shares of a joint stock company are distributed among shareholders, i.e. co-owners of the company.

Depending on the method of exercising the rights of a shareholder, shares of a joint stock company are divided into ordinary and preferred. Ordinary shares give the right to participate in the management of the joint-stock company (1 share = 1 vote when resolving issues at a meeting of shareholders). The share of ordinary shares concentrated in the hands of one owner and giving him the opportunity to exercise actual control over the joint-stock company is called a controlling stake. Theoretically, the stake should be 50% of all issued common shares plus 1 share. Practically less. Dividends on these shares are paid after dividends on preferred shares are paid.

Preferred shares do not give voting rights at the general meeting of shareholders (with the exception of decisions on issues of reorganization and liquidation of the company), but they bring constant (fixed) income, the amount of which is established when shares are issued. These shares have priority over ordinary shares in the distribution of profits and liquidation of the company. If there is a shortage of profits, dividends on preferred shares are paid out of the company's reserve fund, and if there is a lack of funds to pay dividends on ordinary shares, they are not paid. Preferred shares can be issued in the form of convertible shares, that is, shares that can be exchanged at the owner's request for common shares of the same issuer. According to the Law of the Russian Federation “On Joint Stock Companies”, the par value of preferred shares should not exceed 25% of the authorized capital of the company.

According to the order of ownership, securities are: registered and bearer. According to the Law “On the Securities Market” (Article 2) and the Law “On Joint Stock Companies”, shares are registered securities. A registered share is a security, the name of the owner of which is indicated on its letterhead and (or) in the register of owners. It can be transferred to another person by assignment, only through notarial registration or brokerage houses, banks. Owners of registered shares are registered in the register of shareholders.

Depending on the stage of issue of shares into circulation and their payment, the following types of shares are distinguished: declared, placed and paid. Authorized shares is the maximum number of shares of the corresponding type that can be issued by an enterprise in addition to the shares already placed. The number of authorized shares is not related to the size of the authorized capital and may be more or less than its value. This number is fixed in the charter of the joint-stock company or adopted by decision general meeting shareholders by a majority vote. Outstanding shares are shares that are purchased by shareholders. Paid-up shares are shares for which their owner has made 100% payment and the funds have been credited to the account of the joint-stock company. Not all issued shares are paid, as payment for shares in installments may be provided. At least 50% of the company's shares distributed upon its establishment must be paid for within three months from the date of state registration of the company, and the remaining part - within a year from the date of registration.

Depending on the form of issue, shares are divided into: documentary (blank, in the form of separate documents) and uncertificated (non-blank or non-cash, in the form of entries on personal accounts with the registry holder and on securities accounts with the depositary). The issuer decides on the form of issue. Currently, shares are issued in documentary form less and less often; this form is increasingly being replaced by records of the relevant data in the computer memory, and shareholders are issued a share certificate.

2. Bond - an issue-grade security that secures the right of its owner to receive from the issuer a bond within the period specified in it, its nominal value or other property equivalent. A bond may also provide for the right of its owner to receive a fixed percentage of the nominal value of the bond or other property rights. Bond income is interest and/or discount (Article 2 of the Law “On the Securities Market”, Article 816 of the Civil Code of the Russian Federation).

Bonds are issued for a certain period to attract additional financial resources. Unlike shares, bonds do not give their owners the right to participate in the management of a joint stock company, but they have a number of advantages. A bond is a security that:

1) expresses borrowed, debt relations between the bondholder and the issuer;

2) brings guaranteed income;

3) independently circulates on the stock market until its redemption by the issuer and has its own exchange rate;

4) has the properties of liquidity, reliability, profitability and other investment qualities;

5) has priority over shares in receiving income, payment of income on them is made in priority compared to the payment of dividends on shares;

6) gives the owner the right to priority satisfaction of his claims in comparison with the shareholder upon liquidation of the enterprise;

7) investing in government bonds provides certain tax benefits.

Issuers issue bonds various types and types. Depending on what classification criterion is used as the basis for the grouping, several types of bonds can be distinguished.

Depending on the exercise of the rights of the owner, bonds can be registered or bearer.

Depending on the method of security, bonds are either secured or unsecured. Secured bonds are issued against specific property, land or securities owned by the issuer. Unsecured bonds are debt obligations that are not secured by any collateral.

Based on the presence of a conversion privilege, convertible and non-convertible bonds are distinguished. Convertible bonds give the owner the right to exchange them for common stock of the same issuer. Non-convertible bonds do not provide this right.

Based on the type of yield, they distinguish between interest-bearing, non-interest-bearing bonds, and zero-coupon bonds (bonds of winning loans). Interest-free (discount) bonds are sold at a discount below par. Income on interest-bearing (coupon) bonds is paid by paying coupons to the bonds. Coupon part of a bond certificate that, when separated from the certificate, entitles the owner to receive interest (income). The amount of interest and the date of its payment are indicated on the coupon, so the coupon is the main characteristic of the bond. The interest paid can be fixed or floating. The income from winning loan bonds is represented in the form of the goods or services for which they were issued.

Depending on the duration, bonds are available with a fixed maturity date and without a fixed maturity date. Bonds with a specified maturity date are divided into short-term validity period up to 1 year, medium-term validity period up to 5 years, long-term validity period from 5 to 30 years. Bonds without a fixed maturity date are divided into returnable bonds issued by the issuer before the end of the term, with the payment of a premium to the holder for lost material opportunities; bonds with an extended validity period the holder has the right, upon expiration of the validity period, to exchange them for more
long-term bonds of the same value and with a higher interest rate; bonds with a narrowing validity period the holder has the right to present his bonds for redemption at par value before the end of the loan term.

Depending on the issuer, there are corporate bonds and government bonds. State bonds are divided into federal bonds, issued on behalf of the Russian Federation, and municipal bonds, issued on behalf of the municipality of a city or district. The state issues the following bonds: bonds of the state republican internal loan of the RSFSR 1991 GDO (long-term); government short-term zero-coupon GKO bonds; domestic foreign currency loan; federal loan bonds; federal gold bonds; bonds of the Russian Internal
loan 1992, etc.

Corporate bonds are issued to attract additional financial resources. Bonds of internal state and municipal loans are issued to bearer; corporate bonds both registered and bearer.

The bond has basic characteristics: par value, rate, point, coupon, discount, etc. Payment for bonds is made by calculating interest on the par value. An investor, having a bond, knows in advance how much money he will receive on it by a certain time. Knowing the par value is also necessary in order to determine the current rate of the bond, since this security is quoted as a percentage of its par value (i.e., the amount indicated on the bond). The bond rate is determined as a percentage and the content individual species securities to par by dividing the market price of the bond by the par price of the bond.

The total income from a bond consists of the following elements: 1) periodically paid interest (coupon income); 2) change in the value of the bond for the corresponding period; 3) income from reinvestment of interest received.

3. Bill of exchange a security certifying the unconditional monetary obligation of the drawer to pay, upon maturity, a certain amount of money to the owner of the bill (bill holder). A bill of exchange can be: simple and transferable (Law of the Russian Federation “On Bill of Exchange and Promissory Note” dated March 11, 1997 No. 48-FZ).

The bill has a number of significant features:

* abstractness;

* indisputability;

* negotiability;

* monetarity;

* right to protest;

* joint responsibility.

The types of bills are quite diverse and vary depending on the issuers, payment terms, ownership order, etc.

Depending on the entity making the payment of the bill amount, bills of exchange are divided into simple and transferable. Simple (solo bill) - the obligation of the debtor to pay a certain amount of money within a specified period of time to the recipient of the money or, by his order, to any other person presenting the bill for payment. A promissory note is issued by the payer (debtor) himself. A bill of exchange (draft) is issued and signed by the creditor (drawee) and represents an order from the creditor (drawee) to the debtor (drawee) to pay within a specified period of time a certain amount of money to a third party (remitee - the first holder of the bill) or the bearer. By a bill of exchange, the debtor becomes the payer.

Based on the principle of the issuer, bills of exchange are distinguished between public and private. Government bills are debt obligations issued by the Government of the country through the mediation of the Central Bank of Russia and the Ministry of Finance of the Russian Federation. Municipal bills are issued by the administrations of the constituent entities of the Federation and local administrations. Private bills include bills issued by corporations, financial groups, and commercial banks. Bank bills are issued by banks (usually at a discount). Corporate bills are used to formalize loan obligations and are issued by business entities.

According to the order of ownership, a distinction is made between registered bills and bearer bills.

Depending on the income received, bills of exchange are divided into discount ones: they imply a discount (the difference between the purchase price and the redemption price (face value) of the bill); interest involves receiving interest.

Depending on the territory in which bills are circulated, they can be divided into local ones, which can only be circulated in a certain territory; national, which circulate on the territory of the state; international. You can also distinguish between domestic and foreign bills.

According to the guarantee of payment, bills of exchange are divided into avalized (guaranteed) and non-validated (non-guaranteed). Guaranteed bills are marked with a bill of exchange guarantee, a guarantee from banks and credit institutions - aval.

4. Certificates of deposit and savings

Deposit and savings certificates can be issued one-time or in series; both registered and bearer; interest and discount.

The following interest payment methods can be established for interest certificates: fixed interest rate, fluctuating interest rate, the value of which is tied to a certain financial indicator(refinancing rate, assessment of GKO yield). The initial placement of discount certificates is carried out at prices below par, interest is paid in the form of the difference between the par and redemption price.

Certificates of deposit and savings are circulated by assigning claims (assignment). The assignment of rights of claim to the bearer is carried out by simply delivering the certificate to the new owner. As for the personal certificate, the assignment is issued on its reverse side.

5. Bill of lading this is a non-issue security issued by the carrier of sea cargo or his authorized representative to the owner of the cargo or his representative. A bill of lading is a transport document containing the terms of the contract of carriage by sea, certifying the fact of acceptance of the cargo for shipment, giving the right of disposal and ownership of the holder of the bill of lading to the cargo, the right of the holder of the bill of lading to possess and dispose of it.

A bill of lading is issued for any cargo, regardless of how the transportation is carried out: with the provision of the entire ship, individual ship premises, without such a condition.

Legal acts regulating the issues of issuance and content of a bill of lading are: International Convention for the Unification of Certain Rules Relating to Bills of Lading of 1921 (Hague Rules); Brussels Protocol of 1968 on the revision of the Hague Rules on Bills of Lading 1921 (Hague-Visby Rules); UN Convention on the Carriage of Goods by Sea, 1978 (Hamburg Rules); Code of Merchant Shipping of the Russian Federation dated March 31, 1999

The bill of lading is drawn up on the basis of a loading order signed by the shipper of the cargo, who submits an export order to the port with the necessary details. The bill of lading indicates the language in which the text of the bill of lading is printed; bilingual execution of the bill of lading is possible. Typically, a bill of lading is a printed form. A bill of lading is a document of a standard form, accepted in international practice, for the carriage of goods.

Bills of lading are drawn up in three copies with the same content and date: one for the shipper, the second for the consignee, the third for the carrier. All copies of the bill of lading are originals, as evidenced by the “original” stamp on them. In some cases, the serial number of the original is indicated: first, second, third. The bill of lading indicates the number of originals drawn up, but only one of them can be a document of title. If goods are issued under one of them, then the rest become invalid. Copies of the bill of lading are printed on paper other than
from the original, or have a “copy” stamp.

Depending on whether the bill of lading includes insurance
policy, allocate an insured bill of lading. An insured bill of lading is a combination of a transport document with an insurance policy and serves as evidence of acceptance of the cargo for carriage,
and his insurance. It is usually used when transporting goods in containers.

The following types of bills of lading are also distinguished.

A share bill of lading is an order for the transfer of a certain part of the transported cargo at the port of destination to another person. It is used in the event of a partial sale by the consignee of the goods before
he took delivery.

Consolidated bill of lading bill of lading for several cargoes intended for different consignees.

6. Warrant has two types of application.

First, a warrant is a certificate that gives the holder the right to buy securities at a specified price for a specified period of time or indefinitely. Sometimes a warrant is offered along with a security as an incentive to purchase it.

The following types of warrants can be distinguished (Fig. 2.4.7).

A share warrant is a certificate that gives the holder the right to buy shares of a company at a specified price within a specified time.

Subscription warrant - an instrument through which shareholders exercise their subscription rights or subscription privileges. It is issued by the corporation, which itself determines the number of shares that a shareholder can purchase and the conditions for their acquisition in the event of an additional issue. A subscription warrant provides legal evidence of ownership of subscription rights and is assignable to others. Its type is an ex-warrant - a certificate certifying the shareholder’s right to purchase new ordinary shares of the company at a preferential price before their public offering.

Depending on the form of existence, a distinction is made between continuous and detachable warrants. A permanent warrant is a long-term or perpetual security issued together with a bond or preferred stock and giving the right to purchase a certain number of common shares of the same issuer; it cannot be sold separately. A detachable (rolling) warrant is a warrant that can be sold separately from the securities to which it was originally attached.

Bonds with warrants - a combination of a common bond and a warrant to purchase shares. Bonds with a warrant may or may not imply the possibility of separating the warrant from the bond. However, the exercise of the warrant does not mean the termination of the bond. Warrants provide the ability to issue bonds at a lower interest rate.

Dividend warrant certificate of receipt of a warrant, an order to pay a dividend to the shareholder.

An interest warrant is a directive to a corporation to pay interest due on its bonds and other securities.

Index warrant option on a stock index issued as
part of the issue of securities and guaranteed by the clearing house.

Currency warrants are options included in securities issues and giving their holder the right to purchase from the issuer additional securities denominated in another currency. In this case, the coupon and price of securities are fixed at the time of sale of the main issue.

Covered Warrant A warrant to buy or sell specified securities held in an investment company's portfolio.

European warrant warrant used only on certain days or periods.

Buying a warrant makes sense if the value of the shares is expected to increase by the time they are issued. The sale of a warrant is one way of issuing a new issue of shares. Warrants can be traded on an exchange.

Secondly, a warrant certificate of warehouse acceptance for
storage of a specific product. In this case, the warrant is a document of title and is used for the sale and pledge of goods.