Securities Traded at the
Stock Exchange Market
In reference to the type of assets negotiated at the stock market they are basically liabilities, rights subscription, warrants and, over all, shares.
- The shares are securities that constitute a proportional part of the share capital of the company that issues them, and they represent for the owner a participation in it. They are, by its volume of trade, the most important of the assets that can be bought or sold on the stock market.
- They are denominated as a rent of a variable interest due that its profitability is not fixed before hand but that it depends on the results of the company that they represent.
- The rights of subscription are object of negotiation in the capital enlargement operations. Once the capital enlargement operation through new shares is approved the period-denominated “market of subscription of rights” begins in which the right to subscription appears in favor of the share bearer to subscribe new shares. This way the share bearers have two options, or well to buy the new shares in a proportion to the number of the shares owned before the capital enlargement, or well to sell on the stock market its rights in case they are not interested in acquiring more shares.
- The liabilities constitute part of the required loan applied by the issuing institution. They are representative debt securities. They can be distinguished between two great groups of liabilities: state liabilities and private liabilities.
- The first are public debts issued by the government, while the others are issued by private institution, generally non financial, although on certain cases banks, saving banks and governmental institutions may also do it.
- Within this second group there exists different types: classical liabilities, convertible liabilities, liabilities with warrants, zero coupon liabilities, indexed liabilities, subordinated liabilities, international liabilities, etc.
- Finally, the warrants that are financial instrument incorporated into certain types of bonds, but negotiable in a separate way.
- The owner of the warrant acquires the right to buy or sell a determined number of shares of the issuing company at a predetermined price and date.
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