Securities as a Bet of Financial and Economic Interest and an Object of Civil Law Relations
13 Pages Posted: 11 Apr 2017
Date Written: April 9, 2017
Most securities provide effective opportunities for investing money capital in order to increase it, at the same time, they are a legal means of financing investments. On the one hand, issuing securities, organizations attract funds for the development of their entrepreneurial activities. On the other hand, for purchasers, securities are primarily a way of generating income, usually without active personal involvement, without difficulty in the organization itself.
When acquiring securities, the capital provider (investor) and the capital consumer (issuer of securities) enter into civil-legal, financial-economic relations, which are regulated by the terms of issuing specific securities. The carriers of these conditions are the securities themselves. This is their property allows the economy to make a giant leap forward, because, if the securities for the entire time until the end of the period of use of capital remained with the investor, then the situation would be identical to bank lending. However, the main value of securities is that they give investors the opportunity to participate in special, more active and diversified relationships and transactions that are based on the terms and content of securities. If the movement of bank credit capital is the subject of the relationship between the creditor and the borrower is one or another amount of money capital, then the relationship of the investor and the organization issuing securities is built on the securities themselves.
Keywords: issuer, investor, security, interest, price, stock market, capital, growth, income, transaction
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