has the character of the debtor and expresses the obligation of the issuer to the creditor (owner). Capital market is where the supply of capital meets the demand for capital. There are transactions with medium- and long-term borrowings and property liabilities (money, bonds, shares).
(Medium term from one year to four years, long term over four years)
Bonds (Bonds)
Long–term securities of the nature of the debtor, the issuer is in the position of the debtor – the issuer undertakes to acquire long-term funds and at the same time to buy back the bond after the maturity date. Bonds are negotiable (= can be sold before maturity). The owner of the bond is in the position of a creditor and has the right to be paid income, usually interest, half a year or annually
issuer:Legal entities (companies, states, municipalities) must submit an application to the CNB.The cnb issues a permit and determines the amount and time of issuance, which is the reason given by the issuer.
The reason for this problem is that it is usually necessary to raise funds to fund the development of state and other activities. Bonds are safer than stocks because when liquidating an enterprise, money is paid first to creditors and then to shareholders.
§ Parts:
1. Envelope – name, series number and bond, volume and time of issue, approval of CNB, designation of issuer, method of determining nominal value, maturity and yield
2. Coupon sheet – consists of individual coupons, numbered from below and cut out according to the choice of income
·Talon= Certificate of ownership
Mortgage-backed securities
Long-term securities of the nature of the debtor, mortgage bank issuers, the importance for the issuer is the possibility of obtaining funds. It is closely related to mortgages. They are covered by mortgage payments and mortgaged real estate. They are negotiable, less risky and not subject to taxation
Treasury bills
Short/medium term CP of a debtor nature, less risky and by the state that is the issuer of the CNBThey are not freely traded on stock exchanges, they are not targeted at a wide range of stakeholders, they are mainly purchased by banks and investment companies. In order for investors to invest in the Treasury, they would have to invest at least 1,000 million.Otherwise, he will not be able to assess the invested capital in an interesting way.