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in finance, instruments giving to their legal holders rights to money or other property. Securities include stocks, bonds, notes, mortgages, bills of lading, and bills of exchange. See speculationspeculation,
practice of engaging in business in order to make quick profits from fluctuations in prices, as opposed to the practice of investing in a productive enterprise in order to share in its earnings.
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 and stock exchangestock exchange,
organized market for the trading of stocks and bonds (see bond; stock). Such markets were originally open to all, but at present only members of the owning association may buy and sell directly.
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The Columbia Electronic Encyclopedia™ Copyright © 2013, Columbia University Press. Licensed from Columbia University Press. All rights reserved.
The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.



documents indicating a right of ownership (such as stocks, bonds, letters of credit, bills of exchange, checks, and bills of lading) that may only be redeemed upon their presentation. The various categories of securities are (1) securities made out in the name of a specific person, (2) securities made out in the name of the first purchaser and “at his order” (meaning that the person indicated thereon is entitled to transfer the securities by endorsement), and (3) securities that are payable to the bearer and do not indicate in whose name they were issued.

The loss of securities usually means loss of the right to redemption expressed therein. In some instances, however, measures are indicated to protect the rightful owner. Thus a procedure is established in Soviet legislation by means of which the rights of the bearer may be restored upon loss of a savings book.

In capitalist society the principal types of securities are stocks and bonds issued by capitalist enterprises and state loan bonds. Mortgage deeds issued by mortgage banks on land, houses, and other immovable property are a special kind of bond. Securities may represent a capital share in an enterprise or may be evidence of money lent out, and they may confer the right to a regular income in the form of dividends or interest.

The issuance of securities is one of the most important operations of finance capital; it is used by monopolies to extract maximum profits—for example, the huge amounts of founders’ profits obtained from the issuance of securities of newly organized stock companies. Since securities yield an income to their owners, they are bought and sold at specified prices on the stock exchange.

The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
At the end of November, the largest asset growth was observed in one of the largest investment companies, BCC Invest: 72.4 percent year-on-year.
During its last few days, the PML-N government also finalised the names for the post of CEO of three joint investment companies, said the sources.
"The listed infrastructure sector was initially focused on PPP/PFI and economic infrastructure, but in recent years it has expanded to include renewables investment companies and infrastructure debt funds," says Duncan Ball, joint chief executive of BBGI.
He said the two sides agreed that the Indonesian embassy in Kuwait host Indonesian investors to present investment opportunities available in their country and to encourage Kuwaiti investment companies to invest in different investment areas in Indonesia.
Over the past month alone, several investment companies in the closed ended sector have announced continued annual dividend increases, with Foreign &Colonial Investment Trust announcing this weekthat it has raised its dividend for 41 years in a row, Alliance Trust announcing that it has raised its dividend for the 45th year in a row, Brunner recently racking up 40 years of annual dividend increases and Temple Bar an impressive 28 years of annual dividend increases.
Qallaa added that the investment companies aim at entering the world of investment and achieving profits, indicating that the targeted projects will be mainly in the fields of infrastructure, power generation plants and urban development.
While the banking sector has been secured through a Central Bank of Kuwait-led bailout programme, domestic investment companies with haemorrhaging balance sheets remain a risk to financial system.
2009 also saw something of a renaissance for zero dividend preference shares (zeros), with five investment companies raising money through zeros.
Annabel Brodie-Smith, communications director of the Association of Investment Companies, said: "In this economic climate it is extremely important that students and parents understand the true levels of debt they will face on graduation.
Summary: Kuwaiti investment companies have been hurt much by the global economic downturn - with fragmented portfolios and a sub-optimal capital structure when cash is limited.
"Kuwaiti banks' indirect exposure to the stock market is significant, in the form of loans to investment companies and lending for the purchase of shares, which exposes them to potential asset quality problems, Fitch said.
The AICPA Investment Companies Expert Panel and staff issued four investment companies-related Technical Practice Aids to provide guidance on the following topics:

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