Order security is an effective investment

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

An order security is a document that legitimizes its holder as a subject with the expression of rights in it when it ends a continuous series of endorsements that are made on the presented paper.

The above definition is based on some way of legitimizing the holder who has this paper, for the activation of which one actual presentation of this document is not enough. A continuous chain of all endorsements marked on paper is required, the last of which is indicated on the presenter.

Order security is rich in its diversity in terms of legal properties. Their classification is based on various criteria.

First of all, an order security may have a name depending on the type of obligation certified by it. So, any monetary obligation can be certified by a check, a bill of exchange, a bond and various certificates. But corporate obligations are certified using shares, which are corporate paper. Another type of documents, commodity, helpscertify the rights to services and goods. These may include a bill of lading, a mortgage and a warehouse receipt.

Another type of these documents is a check. This is a security, which is a written instruction from the drawer for the bank to pay the payee a certain amount of money specified in it.

Based on the method of issuance, issue and non-issue securities are distinguished. At the same time, the first type includes documents that are mass-produced for the purpose of circulation on an organized market. These may include bonds, stocks and the like. The issue with subsequent circulation of these documents is regulated by the relevant law (the Law on the Securities Market). But non-equity bonds are issued only if necessary and confirm a certain amount of rights.

Based on the issuer, the order security is either state, or municipal, or private. Their main difference is the type of property they are provided with.

Registered securities must certify that the rights specified in it belong to the person directly named in such paper. Execution on it to the debtor is carried out to this person. The rights certified by this document can be transferred by the owner to other subjects. However, this procedure is carried out only in the order established for the cession (assignment of claims), which significantly reduces the turnover of this type of document in comparison with bearer ones.

A registered security is issued in the form of a share,check, bond, bill of lading and certificate. Rights under this type of documents are transferred or assigned by making a special entry in the register on a personal account or based on the request of an authorized entity. Rights under some registered securities are not transferred at all. An example is a personal check.