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Economy of the enterprise - Pokropivny SF

8.3. Formation and regulation of financial investments (securities)

General characteristics of securities . Securities are monetary documents that certify the right to own or credit relations, determine the relationship between the person who issued them (the issuer) and their owner and provide, as a rule, payment of income in the form of dividends or interest, as well as the possibility of transferring monetary rights to others Persons. Securities may be registered or bearer. Nominal securities are transferred in most cases in the form of a full endorsement (transfer inscription certifying the transfer of rights to securities to another person), and bearer securities turn around freely. It is very important to know that securities can be used to make settlements between business entities or as collateral to secure payments and loans.

Separate classification characteristics of types and groups of securities are shown in Fig. 8.2.

Fig. 8.2. Issued by issuers types and groups of securities

The essential characteristics of certain types and groups of securities are given below.

A share is a security without a fixed circulation period that certifies the share participation in the statutory fund of the enterprise (joint-stock company), confirms membership in it, the right to manage the enterprise, as well as to receive part of the profit in the form of a dividend and participation in the distribution of property when the joint-stock company .

Shares can be registered and bearer, privileged and simple. Citizens will be able to own, as a rule, only registered shares. The circulation of such shares is recorded in the registration books of the respective companies. They include information about the owner of the shares, the time of their acquisition and the number of each shareholder. Bearer shares are registered only by their total number.

Preferred shares give the holder the preemptive right to receive dividends, as well as to participate in the distribution of the joint-stock company's property in the event of its liquidation (termination of existence). They can be issued with a fixed percentage of their nominal value by the size of the annual dividend. In this case, the company is obliged to pay dividends in this amount, regardless of the absolute value of the profit received in the corresponding year. In the event that the profit of the corresponding year is insufficient, payment of dividends for such shares must be made from the reserve fund of the joint-stock company.

The issuance of all types of shares by the joint-stock company is carried out in the amount of its statutory fund or for the entire value of the property of the state enterprise in case of transformation of the latter into a joint-stock company. To this we need to add that preferred shares can be issued for an amount not exceeding 10% of the statutory fund of the joint-stock company.

The bond is a security that certifies the transfer of a certain amount of money by its owner and confirms the issuer's obligation to return the nominal value of the bond to the owner of the bond at a specified time with payment of a fixed interest. Bonds of all kinds are distributed to legal entities and individuals on a voluntary basis. Bonds of two types are issued: 1) bonds of internal state and local loans; 2) bonds of enterprises. They can be registered and bearer, interest-bearing and interest-free (target) with free or limited treatment.

Domestic state and local loan bonds are issued to the bearer. The obligatory requisite of the target bonds should be the designation of the goods (services) under which they are issued. Bonds intended for open sale with subsequent free circulation (other than interest-free bonds) must have coupon sheets for interest payments.

Decisions on the issuance of bonds of domestic state and local loans are taken respectively by the Cabinet of Ministers of Ukraine and local authorities, and the issuer's bonds are issued by the issuer with the registration of the relevant protocol. Enterprises (joint-stock companies) can issue bonds in the amount of not more than 25% of the amount of the statutory fund and subject to payment of previously issued shares.

The funds received from the sale of borrowed bonds are sent to the state and local budgets, as well as to off-budget funds of local organizations, respectively. Payment of income on purchased bonds is carried out in accordance with the terms of their issuance. However, the yield on the bonds of the target loan (interest-free bonds) is not paid. The owner of such bonds is granted only the right to purchase the relevant goods or services for which these securities are issued. If the price of the goods at the time of receipt is greater than the value of the bond, the owner receives the goods at the price indicated in the bonds, and when the goods become cheaper, the owner is paid the difference between the bond value and the price of the goods.

Treasury obligations of Ukraine - the type of bearer securities, which are placed only on a voluntary basis among the population, certify the owners making money to the budget and give the right to receive financial income. Issue three types of treasury obligations: a) long-term - with a validity of 5 to 10 years; B) medium-term - from 1 to 5 years; C) short-term - up to one year. The decision on the issue of long- and medium-term treasury obligations is taken by the Cabinet of Ministers, and the short-term by the Ministry of Finance of Ukraine. The sale price of treasury bills is determined depending on the time of their purchase within the validity period. Funds from the implementation of treasury obligations are used to cover current expenditures of the state budget.

Savings certificate in form and content is a written certificate of the bank on the deposit of funds, which certifies the right of the depositor to receive after the deadline for both the deposit itself and interest on it. Savings certificates can be urgent (for a certain contractual interest for a specified period) or on demand, nominal and bearer. Nominal savings certificates are not subject to circulation, their transfer to other persons is not allowed. This type of securities (as well as bonds) individuals can purchase only at the expense of their own funds, and enterprises (organizations) - at the expense of the net profit remaining at their disposal.

Payment of income on savings certificates is carried out on condition that they are presented for payment to the issuing bank. If the holder of the savings certificate requires the return of funds deposited for a certain period before the due date, then a lesser interest is paid to him, which is agreed with the owner at the time of depositing funds into the escrow account.

The bill is a separate type of securities, certifying the unconditional monetary obligation of the debtor (maker) to pay after a certain period of time a certain amount of money to the owner of the bill. Distinguish between a simple and a bill of exchange. The last one (draft) contains a written order to the payer (drawee) to pay a certain amount of money to a third person (reme- rant) within a specified period of time. In this case, the drawee becomes a debtor only after he accepts the bill, that is, he will give his consent to pay for it, putting his signature on it.

In the process of circulation, the bill is transferred by one holder to another with the help of a transfer inscription - an endorsement. Each endorser, like the maker, is responsible for the acceptance and payment of the bill. Promissory notes can be additionally guaranteed with the help of aval - bills of exchange. Timely payment of a bill annulls all promissory notes.

In the event of a refusal to pay, the drawer may file a court claim against the accreditant. In addition, if a bill is not accented or paid for, it has the right to demand payment of a bill by way of recourse (reverse demand) from other responsible persons (the drawer, endorser, avalyst) who are jointly and severally liable to the bill holder.

The totality of various types of securities that are issued and in circulation is divided into three groups. The first group includes unit securities for which the issuer is not obligated to repay the funds invested in its activities, but which certify participation in the statutory fund, present to their owners the right to participate in the management of the issuer's affairs and the right to receive part of the property upon liquidation (termination Activity) of the business entity. The second group covers debt securities, for which the issuer undertakes to return in a certain time the funds invested in its activities, but which do not give their owner the right to participate in the management of the issuer's affairs. The third group consists of derivative securities , the treatment mechanism of which is associated with unitary and debt securities, as well as other financial instruments or rights to them.

Formation and functioning of the stock market . The stock market is the sphere of circulation of securities. The formation and functioning of the stock market is based on certain principles, the main ones of which are given in Table. 8.1.

Table 8.1.

PRINCIPLES FOR FORMATION AND FUNCTIONING OF THE STOCK MARKET

The system of regulation of the stock market implemented by the state performs three main functions:

The first is the definition of the fundamental characteristics and components of the stock market and the role of participants in this market;

The second is the formation of a favorable legislative field for the participants of the stock market;

The third is the establishment of responsibility for actions that can lead to disorganization and destruction of the stock market, unfair competition, fraud with financial resources.

State regulation of the stock market in Ukraine is carried out in several directions. The most important of them:

Ensuring mandatory publication of all material information about the securities market;

Licensing and regulation of financial intermediaries in the stock market;

Control over the activities of organized securities trading systems;

Ensuring the rights of securities owners.

The constant functioning of the stock market is supported by its participants. In Ukraine they are called institutional. The main ones are listed in Fig. 8.3.

Fig. 8.3. Institutional actors (participants) of the stock market in Ukraine

In countries with market orientation of the economy, there are exchange and over-the-counter securities markets, each of which fulfills its own functions.

The stock exchange market is represented by stock exchanges - specialized agencies that create conditions for centralized trading of securities by combining the supply and demand for them, as well as providing the place, system and means of their primary deployment and secondary circulation. In the process of privatization of property of state enterprises through the stock exchanges, placement of government securities is also carried out. It should be noted that stock exchanges should ensure the formation of the most fair price for securities through the listing procedure and the mechanism of exchange trades and thereby increase investor confidence in them.

In order to facilitate the attraction of financial resources for manufacturing enterprises and the creation of a stock infrastructure, a civilized OTC securities market should also develop, which is usually a trade and information system for the organized sale of securities using the existing commodity exchanges for this purpose. Such a market promotes the development of investment consulting services and portfolio management, which primarily attracts small investors.

State regulation of the issuance and circulation of securities . The special Law of Ukraine "On the State Regulation of the Securities Market in Ukraine" (October 1996), adopted by the Supreme Council, contains relevant provisions concerning the purpose and form of state regulation of the securities market, types of professional activities in the stock market and bodies that provide state regulation of the issuance and Circulation of securities.

It specifically stipulates that state regulation is carried out with the aim:

• Implementation of a unified state policy in the sphere of issuance and circulation of securities;
• Creation of conditions for effective mobilization and placement of financial resources by participants in the securities market taking into account the interests of the society;
• Comprehensive protection of the rights of participants in the securities market.

The forms of state regulation of the securities market envisaged by law include:

• Adoption of legislative and regulatory acts on the activities of participants in the securities market;
• Issuance of special permits (licenses) for professional activities in the securities market and ensuring control over such activities;
• Registration of the issue of securities and messages in the mass media about the issue of securities;
• Creation of a system for protecting the rights of investors and monitoring the observance of these rights by securities issuers;
• The establishment of rules and standards for the conduct of operations in the securities market, as well as monitoring their compliance;
• Control over the process of pricing in the securities market.

Specific types of professional activity are carried out on the securities market. The main ones are:

Trading in securities;

Depository and settlement and clearing activities;

Management of securities that belong to others;

Keeping a register of owners of registered securities;

The organization of trading on the securities market (mainly the provision of services that directly contribute to the conclusion of civil-law agreements on securities).

The functions of direct regulation of the securities market are performed by the State Commission for Securities and the Stock Market (SCSSM), which is the body subordinate to the President of Ukraine and accountable to the Supreme Council of Ukraine. It consists of the Chairman of the Commission and six members, has the appropriate central office, as well as territorial offices.

The SCSSM appoints state representatives on stock exchanges authorized to monitor compliance with the provisions of the Charter and the rules of the stock exchange and who have the right to participate in the work of the governing bodies of the exchange. Under the State Committee for Securities and Stock Market, there is an Advisory and Advisory Council that develops recommendations on securities market policies and takes part in the preparation and discussion of draft legislative acts. The commission also organizes scientific research on the functioning of the stock market in Ukraine.

Taking into account the importance, it is customary to allocate two special functions of the Securities and Stock Market State Commission: 1) issuance of permits for securities issuance and circulation; 2) registration of securities issues.

Execution of exclusive activities for the issuance and circulation of securities is allowed on the basis of a permit issued by the State Commission for Securities and Stock Market. Разрешение на осуществление всех или отдельных видов деятельности (кроме комиссионной) выдается торговцам ценных бумаг, которые должны предварительно внести в уставный фонд биржи не менее чем 100 необлагаемых минимумов доходов граждан, а для осуществления комиссионной деятельности с ценными бумагами — не менее чем 200 необлагаемых минимумов доходов граждан.

Порядок регистрации выпуска акций и облигаций предприятий, а также информации об их выпуске определяется ГКЦБФР. Эта комиссия ведет также общий реестр выпуска ценных бумаг. Ценные бумаги подлежат регистрации на протяжении 30 дней со дня подачи заявлений с другими необходимыми документами.

Соблюдение требований антимонопольного законодательства относительно обращения всех видов ценных бумаг контролирует Антимонопольный комитет Украины.