Valuation of securitiesValuation of securities is made by determining the market value of equity securities (both ordinary and preferred shares). In addition, debt securities - bonds and promissory notes - are included in the valuation; Derivatives of securities - options and futures, issued by state bodies, various financial institutions, such as banks and exchanges, and, of course, enterprises and organizations. The most widespread in the financial markets of Russia received such securities as bills, stocks, bonds. The most popular in terms of valuation of securities are the following events:
- Valuation of securities on transactions for their purchase (sale).
- Valuation of securities due to restructuring of owners (organizations, enterprises).
- Valuation of securities as a contribution to the authorized capital of another legal entity.
- Evaluation of securities offered as collateral for loans.
- Valuation of securities as an object of trust management.
- The valuation of securities, made for the purpose of calculating the market value of the company (its assets) for a certain period of time.
By types of securities are as follows:
- Confirming real rights - commodity securities;
- Confirming monetary rights - respectively, monetary securities;
- Shares that are confirmation of both real and monetary rights;
Most often in the practice of appraisers there are works evaluating the shares of CJSC or JSC (closed and open joint-stock companies). Also, the share of participation in various LLCs is often estimated. The valuation of bills and bonds is no less a demanded service.
Forecasting the future yield of investments in securities directly depends on the assessment of financial assets and liabilities for these securities. In addition, valuation based on a detailed analysis of financial investments determines the market value of loans, various securities, other methods of participation in business, which, however, is the basis for forecasting.
A security is not only a separate form of the availability of capital, but also a commodity that has circulation in the stock markets. However, this is not a tangible commodity, and its value is in direct proportion to the rights it assigns to the owner. For example, the owner of shares has the right to participate in the management, to receive dividends, as well as to the proportionate value of shares of the property when liquidating the company, etc. The owner of the bill has the right to transfer, repay or receive income.
This requires a complete and accurate analysis of all the owner's rights in their value equivalent, which is what the valuation of securities is. These rights are valid under the Civil Code of the Russian Federation, the Federal Law "On the Securities Market", the Federal Law "On Joint Stock Companies" and other laws and by-laws.
Types of securities, their issuers, availability of exchange quotations or the presence of the Central Bank in the over-the-counter turnover of the financial market are those components that are of great importance in the valuation work. And the timing of the order for the evaluation of securities listed on the open market, are small. In the same case, when there are no stock quotes on the Central Bank, there is no information on the value in open financial markets; their analysis requires analysis of the financial market situation for a certain period of time. The yield of securities is also assessed based on the stability of the issuer's financial condition and its reliability. In such a situation, the appraiser's work consists in examining the issuer's financial statements for its financial status and determining additional discount rates that neutralize the risks associated with investing in the securities under investigation.
Among the main factors affecting the value of securities, experts identify the following positions:
- Supply and demand, their ratio.
- Liquidity of securities declared for valuation.
- Quotations of securities in the financial market, similar to those declared.
- The yield of the securities declared for valuation or the estimated value of the estimated income.
- Influencing the profitability (financial indicators, affiliation to the industry, location) characteristics of the issuer.
- And, of course, the reliability of the Central Bank itself and the projected risks of default.
It is worth repeating: the evaluation (evaluation expertise) of the value of securities is made by determining the market value of equity securities (both ordinary and preferred shares). In addition, debt securities - bonds and promissory notes - are included in the valuation; Derivatives of securities - options and futures, issued by state bodies, various financial institutions, such as banks and exchanges, and, of course, enterprises and organizations.
Applying to the professionals of our company, you will ensure the quality of the appraisal examination of securities, thus eliminating risks.