Syndicate
Public Private Values
In the stock market, values can be bought and sold. These values represent debts or public or private entities capital. Values can be classified in many ways:
- According to the kind of income it provides: fixed income (State?s debts, bonds, debentures, commercial papers, promissory notes) or variable income (stocks)
- According to the type of issuer, public or private
- According to the physical formula to be applied, documentary or registering
- According to the holders designation: nominative, to the bearer or to the order of
- According to the kind of contract: public funds, debentures, stocks and short-term financial assets.
Public debts (debentures, State bond, and Treasury notes) are fixed incomes and have the opportunity to invest almost without risk, since it counts with the State’s guarantee. Also included in public debts are those issued by the public administration. The main risk that these carry is that of fluctuating interest rates because once the debt is bought if the market interest raise, the debt loses attractiveness.
Debentures and bonds issued by private companies are also fixed-income and are not to risky, despite risk is higher than in public debts. According to the guarantees offered, they can be simple or mortgaged. Interests can be periodically delivered at the beginning (at discount) or at the end (zero capital).
Stocks are, in general, investments that suppose a greater risk. They can be nominative or to the bearer. They can also be ordinary, privileged without the right to or be syndicated.
Profitability of stocks come from the dividends offered of capital gain they could experience of the sale of the subscription rights and the incomes for the rent of the same.
Short-term financial assets are commercial papers and notes. These are fixed-income values at short-term (18 months maximum), so risk levels are really low.
Investment funds provide the possibility to invest in any kind of values and from any country, with specialists negotiation. In this way, the investor can decide what risk level is he willing to take. If one opts for low risk, one will invest in fixed-income underlying investment funds, money market assets investment funds and Treasury funds. On the contrary, if one prefers to take a higher risk level, one would invest in variable income underlying investment funds.
Warrants are values issued by societies that quote in the market that give the right to buy or sell a determined asset, normally stocks from the same company, at a determined price.