4444444444444Equities - Types and Rights

Investment instruments
With traditional forms of securities, a distinction is drawn between equities and bonds. The share
is a category of equity. Subscription rights and participation certificates also belong to this group.
On the other hand, fixed-income securities, such as bonds, securitize the right of redemption,
plus interest, at a specified point in time. Modern forms of investment tradable on the stock
exchange, include the so-called derivatives. The value of these securitites is – quite literally –
derived from the market value of their underlyings. Funds as well as investment and leverage
products are derivatives.
Features of equities
A stock represents a unit of ownership in a co44444444444444444pany. Shares are issued by
stock corporations or associations limited by shares and traded on the stock exchange, where on
a continuous basis, prices are calculated by matching demand and supply.
The bearer or owner of a share, called a shareholder, owns part of the company's capital stock,
indicated either as a percentage of the total share capital or as a par value that is printed on the
share certificate. The rights vested in the shares are regulated by the German Stock Corporation
Act and the company's charter.
Basic shareholder rights include:
 the right to attend the annual general meeting,
 the right to vote at the annual general meeting,
 the right to receive a share of the company's profits,
 the right to subscribe to new shares.
Types of equities
Shares are classified according to various criteria, such as the way in which the capital stock is
divided up, the fungibility of the shares, or the type of rights attached to the shares:

 Par value shares vs. no-par value shares. while par value shares state a fixed amount of
the capital stock, no par-value shares securitize a percentage share in the capital stock of
a company.
 Bearer shares vs. registered shares (or registered shares with restricted transferability).
The owner of a registered share is named in a company's shareholder record. Registered
 shares with restricted transferability are a particular type of equity, because the transfer of
ownership is subject to approval by the stock corporation. As far as bearer shares are
concerned, the shareholder right is merely bound to the ownership of the share.
 Ordinary shares vs. preferred shares. Unlike ordinary shares, preferred shares do not
carry voting rights. Instead, preferred shares usually take precedence over ordinary shares
when it comes to the distribution of profits and liquidation proceeds of a stock
corporation.

Meaning and Definition of debt

Debt Instruments
Debt instruments represents a contract whereby one party lends money to another on
predetermined terms with regards to rate and periodicity of interest, repayment of principal
amount by the borrower to the lender.
An amount owe4444444444444444444444444444 to a person or