ISSUERS IN THE SECURITIES MARKET
After studying this chapter, the student must:
• types of issuers;
• classification of issuers depending on their investment attractiveness;
• the main features of a legal entity;
• the definition of a joint stock company;
• shareholder rights;
be able to
• Draw up a constituent document of a legal entity (to enter basic data);
• determine the correctness of liquidation of a legal entity (composition and correct sequence of steps);
• determine the order of satisfaction of claims of creditors in the event of liquidation of a legal entity;
• assess whether the claims of the creditors are repaid;
• methodology for classifying issuers according to the policy they conduct on the stock market;
• the methodology for assessing the interest in making transactions;
• the methodology for assessing the competence of the management bodies of the joint-stock company;
• Methods of liquidation of a legal entity (list of stages and their content).
The issuers represent those participants of the stock market who are interested in attracting investment funds. The mechanism of this attraction may be different: direct lending, bond issues, issue of shares. Each of them has its own positive and negative sides. Moreover, the issue of securities is one of the possible ways of realizing the investment needs of the issuer.
Attracting cash is the most important task that the issuer is solving, using the opportunities of the stock market, however, it is not the only one. Another task is the optimization of financial flows in the technological cycle of the issuer's work. One way to do this is to issue bills. A closed bill program, in which issued bills are circulated among a limited number of counterparties and are presented at a specified time, allows the issuer to rationally manage its financial resources.
The stock market allows the issuer to optimize its control over subsidiaries and dependent organizations. However, in this case, it acts more like a strategic investor controlling the operation of the joint-stock companies dependent on it. The methods of work of strategic investors will be discussed in Ch. 6.
An important direction of the issuer's work is the formation of a positive image using the opportunities of the securities market. This line of the issuer's activities is interrelated with the solution of other tasks, the main one of which is the attraction of investment funds. Creating a positive image of the issuer in the stock market involves solving the following problems:
• creation of the liquid market of the issuer's securities;
• Passage of the procedure for listing the issuer's securities on a recognized and authoritative trading platform to enhance the investment attractiveness of the issuer in the eyes of potential investors;
• increase of company's capitalization;
• Organization and conduct of regular work of the issuer with shareholders, professional participants and investors of the stock market.
Characteristics of securities issuers
Issuers are the main participants of the stock market. They are those organizations that consume investment resources, using them to implement specific investment projects. If investment projects turned out to be successful and their implementation brought profit, then a portion of it is returned to investors either in the form of interest payments on bonds, either in the form of dividends on shares, or as an increase in the value of the issued securities. Thus, on the one hand, issuers are consumers of investment resources, and on the other hand - a source of financial resources returned to investors.
It is possible to classify issuers on various grounds, the most significant of which are as follows:
• types of issuers as forms of state-legal education:
• the legal form of the issuers;
• areas of professional activity;
• investment attractiveness of issuers;
• The policy they conduct on the stock market (active, designed to attract strategic investors, the dispersion of capital, orientation to domestic or foreign capital, etc.);
• nationality of issuers (residents, non-residents).
Let's consider in more detail the classification of issuers by these characteristics.
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