Description of Types of Securities
Customers may invest their funds in the following types of securities:
- Ordinary and preference shares
- Governmental and corporate
- bonds Derivative instruments
Ordinary share is the share that entitles its shareholder to receive dividends from company’s revenues, participate in management of company’s affairs and also claim for part of remaining property after company’s liquidation.
Unlike the Ordinary share the Preference share does not entitle its owner to decisive vote during the company meetings, and the dividends are set forth by the Charter and are paid without additional decision-making. During the company’s bankruptcy the priority in meeting the liabilities is set for preference shares and not ordinary ones.
Bonds are securities entitling their owners to receive their amount or other equated property from the bond issuer in the prescribed term, or to receive interest from their nominal values, or enjoy other proprietary rights.
Derivative Instruments – are securities that certify a right and/or a liability executable within a certain period of time. The price of derivative instruments is largely depending on underlying assets and is determined by price fluctuations of assets to which those are linked.