Security paper? this is a document of a standard form, which gives a citizen certain rights to dispose and use specific types of assets. Securities provide a simplified and efficient transfer of statutory rights to tangible and other benefits (assets). From an economic point of view, they give the right to part of the ownership of capital and distribution of profits. They are used by commercial entities for their functioning and organization (stocks), and can also be credit (bonds).
[Note: Stock prices and indicators in the article are indicated at the time of publication. You can see the current stock prices in a special widget at the end of the text.]
A security has the following features:
• may be the subject of legal transactions (turnover, they can be bought and sold);
• contains a list of the rights and obligations of its holder (legal value, precept of law);
• realizes private rights (for example, the right to participate in the management of the company, which is why it is valuable);
• is a document that has legal force and public credibility.
The movement of securities on the market is regulated by the Civil Code of the Russian Federation, the Federal Laws “On Joint Stock Companies” and “On the Securities Market”.
Views
In the Civil Code of the Russian Federation there are many types of securities, among which are deposit and savings certificates, bills, checks and even a savings book, but we are more interested in securities such as stocks and bonds (stock market products).
• Stock ? secures the owner’s right to profit in the joint-stock company, participation in meetings and the division of property in case of liquidation of the company, payment of dividends. But if you buy one share, this does not mean that you can sit in the same office with the board of directors. This opportunity is provided only by a high percentage of shares in ownership or a controlling stake.
One share corresponds to one vote in the meeting, but one vote is not enough for you to make decisions. The stock is endowed with investment opportunities, and any owner has the right to rely on income from fluctuations in the price of the stock and payment of dividends (the amount of dividends depends on the number of shares you bought).
• Bond? this is debt paper. The owner of which has the right to receive, within the agreed time, its face value from the issuer (the company that issued the bond). The investor’s income depends on the difference in the purchase price of the bond and its redemption price. In other words, a bond is a loan, a source of funds for a company or government. When buying bonds, you kind of lend money to the issuer at interest. As a rule, such a loan is needed to finance specific programs or facilities.
Where and how to buy stocks and bonds
The most famous place to trade stocks and bonds in Russia is the Moscow Exchange [MOEX]. You can buy shares on the exchange only if you open a brokerage account with one of the Russian brokers. You cannot buy and sell shares and bonds without an intermediary (broker). It provides the investor with all the necessary trading functions..
You can also buy shares of well-known foreign corporations (Apple, Google and Facebook, etc.) through Russian brokers. However, not all shares of American companies are available through domestic intermediaries. This market is not represented in 100% of its component for an ordinary investor in our country. To own all the capabilities of the American market, Russian citizens can open an account with a foreign broker, one of such, Interactive Brokers.
TOP 5 world famous stock exchanges:
1. NYSE, USA. It was founded on March 8, 1817. Number of companies listing 4100.
2. NASDAQ, USA. It has a unique trading system. Entered the European market through the acquisition of a 72% stake in OMX Group.
3. Tokyo Stock Exchange, Japan. It accounts for 75-85% of the country’s stock exchange turnover; more than 2500 firms take part in the auction.
4. London Stock Exchange, UK. One of the largest and oldest exchanges in Europe. Officially founded in 1801.
5. Shanghai Stock Exchange, China. The largest trading platform in China. One of the leaders among Asian exchanges.
How much are stocks
Securities trading? This is a cold calculation and numbers. With the right approach, you can significantly increase your income. You can earn here, as mentioned above, in two ways:
• on the difference between buying and selling;
• on dividends, payment of interest for ownership (they vary from 1 to 20%).
The recommended amount for which you can collect the first, good and diversified portfolio starts from 50-100 thousand rubles. The cost of securities depends on which company they were issued and in what financial situation the company is at the moment..
In this widget, you can see the stock prices of large foreign companies, as of today.
If we talk about Russia, is the Yandex stock worth today? 2 158.50 p. Shares of Sberbank (192.65 rubles per unit), Gazprom (143.38 rubles per unit) and NK Lukoil (4 460.00 rubles per unit).
The most expensive securities issued by Berkshire Hathaway. In the domestic market, Transneft shares (over 153 thousand rubles per share on August 22, 2018) and Alrosa Nyurba (over 108 thousand rubles per share on August 22, 2018) will cost you the most..
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