Английский язык. Практический курс для решения бизнес-задач

Secondary markets often consist of stock exchanges (see lesson 28). The International Securities Market Association (ISMA) is the trade association for the banks and other investment institutions that are active in the secondary markets.

In the primary markets, securities may be offered to the public in a public offer. Alternatively, they may be offered privately to a limited number of persons in a private placement. Often a combination of the two is used. The distinction between the two is important to securities regulation and company law.

Legal Nature of Securities: Bearer and Registered Securities

Bearer securities. Bearer securities are issued in the form of a paper instrument. On the face of the instrument is written the promise of the issuer to pay the bearer of the instrument. In the absence of computerisation, bearer securities constitute tangible assets. They are transferred by delivering the instrument from person to person. In some cases, transfer is by endorsement, or signing the back of the instrument, and delivery. Regulatory and fiscal authorities sometimes regard bearer securities negatively, as they may be used to facilitate the evasion of regulatory restrictions and tax.

Registered securities. In the case of registered securities, certificates bearing the name of the holder are issued, but these merely represent the securities. A person does not automatically acquire legal ownership by having possession of the certificate. The issuer maintains a register (usually maintained by an appointed registrar) in which details of the holder of the securities are entered and updated as appropriate. In recent years, registers have generally become computerised. Unlike bearer securities, registered securities comprise a bundle of intangible rights including the right of the shareholder to share in all the assets of a company, subject to all the liabilities of the company. A transfer of registered securities is effected by amending the register.

Fungible and non-fungible securities. The terms «fungible» and «non-fungible» relate to the way in which securities are held. If an asset is fungible, when such an asset is placed with a custodian, the custodian at the end of the custody arrangement may return assets equivalent to the original asset, rather than the identical asset.

Stock split refers to a corporate action that increases the shares in a public company. The price of the shares are adjusted so that the before and after market capitalization of the company remains the same and dilution does not occur. 2-for-1, 3-for-1, and 3-for-2 splits are the most common but any ratio is possible. Sometimes investors will receive cash payments in lieu of fractional shares.

It is often claimed that stock splits in themselves lead to higher stock prices, however, research does not bear this out. What is true is that stock splits are usually initiated after a large run up in share price. Momentum investing would suggest that such a trend would continue regardless of the stock split.

Source: Wikepidea

Essential Vocabulary

1. mortgage (Mort) n – ипотека, закладная, ипотечный кредит

mortgage v – закладывать

2. repackaging n – «переупаковка» (разделение ценной бумаги на элементы для продажи в качестве самостоятельных финансовых инструментов)

repackage v – «переупаковывать»

3. special purpose vehicle (SPV) – компания специального назначения

4. securitization n – «секьюритизация» (повышение роли различных ценных бумаг как форм заимствования по сравнению с банковскими кредитами; трансформация банковских кредитов в ценные бумаги; стирание различий между рынками банковских кредитов и ценных бумаг)

5. investment bank – инвестиционный банк

6. security interest – право на обеспечение

7. collateral transfer – передача обеспечения

8. marketable security – рыночные (легко реализуемые) ценные бумаги

9. entitlement n – право на что-либо

entitle (to) v – давать право на что-либо

10. vote n – голос

vote v – голосовать

voting a – голосующий

11. cooperative society – кооператив

12.majority shareholder – основной акционер

13. legal person – юридическое лицо

14. full service broker – брокер полного профиля

15. discount broker – «дисконтный» брокер

16. investor’s relations department – департамент по отношениям с инвесторами

17. direct public offer – прямое публичное предложение акций

18. short selling – «короткая» продажа

19. trasaction fee – гонорар за операцию

20. capital gains tax – налог на приращение капитала

21. treasury stock – казначейские акции

22. dual class share – «двойная акция»

23. right of first refusal – право первого отказа

24. preference share – привилегированная акция

25. convertible bond – конвертируемая облигация

26. equity warrant – облигационный варрант, дающий право на покупку акций заемщика по оговоренной цене

27. detach v – отделять, отцеплять, разъединять

detachable a – отделяемый, съемный, отрывной

28. International Securities Market Association (ISMA) – Ассоциация международного рынка ценных бумаг

29. bearer security – ценная бумага на предъявителя

30. registered security – именная ценная бумага

31. registrar n – реестродержатель

32. fungible security – взаимозаменяемая ценная бумага

33. non-fungible security – невзаимозаменяемая ценная бумага

34. custodian n – попечитель, финансовый агент, хранитель

custodial a – попечительский