Security valuation, its goals

Security valuation, its goals
Security valuation, its goals

Video: Security valuation, its goals

Video: Security valuation, its goals
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If the securities are already on the market, then making a report and determining their value will not be difficult and will take about two business days. The exchange quotation, the issuer and the type of security itself are factors affecting the appraisal value.

In our time, equity securities are gaining popularity. These are also shares, and they serve as the main commodity when working on the market. The valuation of securities, shares, the valuation of equity securities takes place in exactly the same way. Depending on their type, income (dividends) are paid:

Valuation of securities
Valuation of securities

- ordinary shares, payments are made after the deduction of all taxes, that is, from profit, and depend on the profitability of the company. Give the owner the right to participate in the distribution of profits;

- preferred shares. Here, it is possible to pay a smaller amount of dividends, which was previously agreed, and does not depend on the profitability of the enterprise. When the company is liquidated, the owner can receive his part of the company's assets, as well as receive part of the profit (dividends) for the past years. At the request of the owner, they can be exchanged for ordinary shares.

Valuation of securities (bonds, promissory notes, promissory notes and others) is carried out under certain circumstances:obtaining a loan (if securities are used as collateral), forming the authorized capital of the company, buying and selling this asset, determining the value of the company on the market at the moment, issuing the Central Bank (in this case, the presence of an independent appraiser is expected).

In case the security was not previously listed on the stock exchange and there is no information about it

Valuation of stock securities
Valuation of stock securities

purchase-sale value, then the valuation of securities takes place after a thorough analysis:

- its profitability is determined;

- the conjuncture of the market at a given time is estimated;

- the reliability of the issuer, its stability and financial condition is checked.

Evaluation of securities, company shares, occurs to determine the share of the business, which in this case will be expressed in monetary terms.

A share is an issuing Central Bank and provides the right to participate in the management of the company and receive dividends.

Valuation of equity securities
Valuation of equity securities

Evaluation of securities in monetary terms is determined by their issuance value (on the primary market), face value (estimated upon issuance), liquidation value (when selling a liquidated company), exchange rate value (determined by the market), redemption value (paid for the purchase securities by the issuer itself), book value (reflected in the company's balance sheet), book value (determined by financial documents based on net profit per number of issued shares).

When working with securities, there is the concept of "quotation of securities". In this caseprice determination is already taking place in three markets at the same time: exchange, primary and "street". Pre-sale evaluation, course determination, publication and registration of these courses in exchange bulletins and various business publications are taken into account.

The valuation of securities reflects their liquidity. Liquidity is determined by the speed of sales of securities on the stock exchange or outside it at a market price, which directly depends on the issuer of these assets. In Russia, the following shares are highly liquid: OAO Gazprom, AO Norilsk Nickel, AO Mosenergo.

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