Securities and the loss in the price of securities

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In Russia, the market of the Central Bank has formed. It is regulated by legal and economic methods. The legal side is regulated by the Civil Code of the Russian Federation, which establishes the rules of work and the required forms of doing this type of business, mandatory details, reporting forms. The possibility of transferring business rights can only be made if the required documentation is available. But a loss on the stock price is possible under any legal framework.

There are two forms of their release:

- Securities are issued, can be non-documentary, are determined by the following features: a) property and non-property rights are certified in accordance with the current legislation, b) are realized with the same terms and volumes in one issue; the time of purchase does not matter, c) placement occurs by issue.

- Non-issuing securities, issued in small batches or individually.

Securities by ownership are divided into order, registered and bearer;

- order securities, in which ownership is indicated in itself;

- registered securities, in which the name of the owner is entered on the form itself or in the register. It happens in written and electronic form;

- Bearer securities, notindicates the buyer and does not require identification. They are not registered.

Nowadays, many pledge securities. The valuation will be made below the market value, so there may be a loss in the course. Working with the Central Bank is not safe, there are various risks. For example:

- with a decrease in the liquidity of the Central Bank, there is a possibility of a decrease in their value during the subsequent sale, in some cases the sale is carried out much lower than the cost;

- when the issuer goes bankrupt;

- when market conditions deteriorate, securities become cheaper.

If there is a loss in the stock price, try to keep it as small as possible.

The possibility of losing investments in the stock market is called "portfolio risk". Loss on the price of securities is quite probable, it can happen due to circumstances beyond your control.

There are these types of securities market:

1. Primary, where only issued securities are sold.

2. Secondary, where securities are already being resold, it is more speculative.

The exchange rate fluctuations of the Central Bank in the stock market occur constantly. If their value increases, the number of sales decreases; if the price decreases, it increases. Many factors influence the exchange rate of the Central Bank;

- speculative, when shareholders themselves buy up their shares, thereby increasing their value;

- objective, depending on the state of the finances of the owner of the shares, the current profit of the company, cost and quantityshares, from the rate of increase in the liquidity of the joint-stock company;

- subjective, they include the technical component of trading, as well as the number of securities on the market.

The degree of risk from investing money, liquidity and profitability are the most important components to consider when working in this market.

Always remember that a loss in the price of securities can occur at any time. Approach carefully and reasonably to each action. Carefully analyze the market situation. Define your investment portfolio correctly. Skillful trading in the securities market can increase we alth.