Money issue is ... Securities issue
An emission is a financial procedure involving securities or money. This is a release of new products into wide circulation. This process applies to all types of banking and exchange activities. Control over the market situation is carried out by the state.
The currency is strictly regulated by the internal authorities responsible for the stability of the economic component of the country. Money issue is the production of new bills and their release into circulation. This process leads to a moderate increase in the currency supply.
The most important and risky is cash issue. In Russia there are several principles of this type of release:
1. Coins and banknotes are obligations of the Central Bank, which must provide its subjects with all types of assets.
2. The ruble can be issued regardless of the ratio to the current rate of gold and other precious metals.
3Any manipulation of cash should be organized only by the Central Bank. Monopoly also extends to the mechanism for withdrawing banknotes from circulation.4. The ruble is the primary and only means of payment in Russia, which is legalized by the authorities of the Russian Federation.
5. The right to regulate the issue of money reserves the Board of Directors of the Central Bank.
6. Coins and banknotes can be exchanged without any restrictions and prohibitions.
7. Removal of old banknotes from wide circulation is allowed only in accordance with a decree of the Board of Directors of the Central Bank.
Printing money and coinage is carried out at enterprises with a legalized license. Most often these are private institutions, which also produce passports, securities and other important documents. In some countries, the state is engaged in the production of banknotes.
Only the Central Bank is engaged in the release of electronic means in Russia. Operations are most often carried out in the form of a refinancing transaction. Non-cash issue is the production of electronic currency for subsequent banking transactions. Money is credited to the recipient's account.Then this deposit can be used to repay the loan and other financial procedures.
Non-cash issue of money is a mechanism for entering not only the national currency, but also foreign. With it, you can buy precious metals, bonds, to participate in trading on the stock exchange.By special permission of the board of directors of the country's head bank, private companies can also issue new electronic money to the masses. However, in this case, all injections should be directed to the interaction between the current partners. Such interbank transfers are limited in size only by special agreement of the parties.
Withdrawal of non-cash currency occurs at the request of the Central Bank. Analysts examine the trend of growth and risk, and then draw conclusions about the termination of the issue or its continuation. The main thing here is to prevent credit squeezing, that is, reducing the possibility of granting loans to private banks.
Exchange rates today determine the overall economic situation in the country. Therefore, here the issue is a lever to a new round of trading. Its goal is to attract new investor injections that will fill the market with the necessary monetary amounts.
Securities issue is an algorithm for placing bonds, stocks and other financial assets on the exchange. This procedure is carried out for the formation of the authorized capital of the joint stock company, to increase its initial deposit. Issue helps in the reorganization of any legal form by splitting or consolidating existing funds. Without such infusions it is extremely difficult to attract even borrowed investors.Here, the issue is a method of delimiting the scope of rights that were previously provided by the basic package of securities. This aspect concerns both financial and economic societies.
New securities should contain general information about their category and type, information about accounting and storage, about the volume of issue, about the nominal value. Also in the document are prescribed the rights that are granted to owners of shares or bonds, possible reasons for withdrawal, taxation procedure and other important nuances.
Algorithm for issuing securities
Any issue of financial documents is carried out in accordance with the statutory mechanism. Today it is customary to distinguish the following steps:
1.Coordination of the decision to issue securities.
2. Registration procedure in the relevant government authorities.
3. Placement of issuing securities on the market. Direct transfer of documents to primary owners is possible.
4. Registration of the report on the results of the issue in the state register.
5. Analysis and final assessment of production.Private issuance of securities is a unique procedure that differs markedly from its standard types. When a joint stock company is established or reorganized in the form of splitting or merging, the release of new financial assets is the following algorithm:
1. Coordination of a paper making decision.
2. Transfer of shares to the owners.
3. Approval of the decision on the placement of securities.
4. Report on performance achieved.
5. State registration takes place simultaneously for the decision on the issue and for the report on the results of the procession.
Control over the production of new securities is reserved by the state. Abuse of production volumes is prosecuted.
Currently, bank payments are used to service customer accounts.This applies to their discovery, and cash redistribution, and other operations. The issuance of a bank is the issuance of new specialized cards on which financial investments of subjects are kept.More than 65% of organizations around the world are engaged in similar production. Most often it is a credit card, but there are savings. In 2014, over 120 million cards were issued. Thanks to them, customers can freely make payments with such systems as Mastercard, VISA, Union Card, etc.
In Russia, the leader in the production of debit cards is Sberbank.
Any company strives to become a leader in its industry. However, for this it is necessary to increase the turnover of investments. One of the easiest ways is a bank loan. However, this solution has its drawbacks: interest rates and license restrictions. In these cases, a bond issue will always come to the proceeds. It requires conversion of share capital and prevents the risk of losing money.The main advantages of such an issue are favorable interest rates, independent management of circulation periods, the choice of an investor, unlimited volume of issue of securities.On the other hand, there is an important drawback - the high cost of producing bonds. That is why it is recommended to issue at least 300 million securities at a time.
Analysis of the issuance of bonds
The release of a new batch allows an enterprise to implement a flexible policy towards liquidity management. Interest rates can rise and fall on the open market at the request of the enterprise. The issue helps to reduce dependence on bank financing, making the work of the organization profitable.
Of the negative sides is to provide a high state duty on the issue of securities. Also, advertising campaigns and broker services require considerable expenses.Before issuing bonds, it is always worth asking whether they will be of interest to buyers.
Banks regularly increase the money supply of the national currency. If this is done to create new deposit rates, then it is a question of such a category as credit issue. Its task is the conversion of bank capital into borrowed funds. Here, the issue implies an increase in loan amounts for its customers.
This is a full mechanism of monetary circulation in the country, which is regulated exclusively by the bank providing services. Such a policy is not without risk. Therefore, not all capital should go to the credit deposit, but only a part of the reserve. This will prevent the so-called banking crisis.