What Are Securities

July 9, 2011 | In: Security

Under a securities refers to a document that certain rights evidenced in a company. To exercise these rights is the ownership of securities in Germany is necessary.

The Swiss Code of Obligations defines security very clearly:

“Security is any instrument by which a law is so connected, that without the certificate not claimed may be transferred to another” (Code of Obligations, Article 965).

There are different types of securities . For example, stocks, bonds, options, etc. For details, refer to our Glossary.

Securities generally consist of

a jacket, ie the certificate or the securities to be
one booklet, which is several numbered sections, referred to as coupons. By handing over
such coupons by a credit institution, the securities guaranteed rights such as the payment of dividends or subscription to new shares to be asserted.
a renewal license, receives his discharge from the holder of the security as a new bow when the bow of the old coupons are used up.

In previous years, the securities nor the owner handed and physically as he had for the corresponding dividend payment coupons to submit to his bank.

Today, the deposit of securities and centralizing the whole process of transactions including dividend payments, compensation of new shares, etc. is called a cash securities account made.

For the German stock exchange trading securities were once six-figure with an identification number, provided the so-called security identification number (WKN). These so-called WKN was replaced on 22/04/2003 by the ISIN (International Securities Identification Number). The ISIN consists of a combination of twelve numbers and / or letters and is used for proper identification of the securities in domestic and international trade.

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