Definition of Securities

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General definitions can be found in the Acts on securities, which provides the following list of securities:

1.      Shares

Shares are securities, issued by a joint stock company with the attached shareholders' rights to participate in the management and profits of the company.

2.      Interim certificates

A joint stock company also issues interim certificates in case the shareholder did not pay the issue price before the entrance of the company in the commercial register. They replace subscribed but unpaid shares.

3.      Participation certificates

Investment companies issue these for the purposes of establishing a unit trust. A participation certificate is a security to which the right of the holder to a proportion of the unit trust's property and to a share in earnings from this property is attached.

4.      Debentures

A debenture is a debt instrument. The issuer receives money in return for the debenture and is obliged to redeem the debt and to pay any interest on a specified date to the debenture holder;

5.      Coupons;

6.      Bill of Exchange or promissory note; - they act as a form of payment.

7.      Cheques;

8.      Traveller's cheques;

9.      Consignment notes (bills of carriage);

10.  Warehouse receipt;

11.  Other documents deemed to be securities under special law.

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