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You will need

• - Civil Code of the Russian Federation;
• - Federal Law No. 39-FZ of April 22, 1996 "On the Securities Market";
• - Standards for the issue of securities and registration of securities prospectuses.

Instructions

1

Start by developing a concept for issuing bonds. The concept should take into account the overall development strategy of the organization, the purpose of the emission, the detailed description of several options for issuance, and a plan for issuing bonds to the secondary securities market. An important factor is also the search for a potential investor in the securities market.

2

After the development of the general concept of outputbonds, take a weighted decision on the issue of bonds or on a justified waiver of emissions (if, for example, the analysis shows the lack of benefit from this procedure). The issue of the issue and placement of bonds belongs to the competence of the board of directors (in the joint-stock company) or to the competence of the general meeting of participants (in a limited liability company).

3

When making a positive decision on the issuebonds determine the number and denomination of securities; the order and maturity of the bonds; method of placement (closed or open subscription); bond placement price and other conditions.

4

Identify the circle of persons among whom you plan to place bonds, if it is a closed subscription.

5

Determine the share of the bond issue, the inability to place it will allow the issue to be considered invalid (this share can not be less than 75% of the issue).

6

Prepare a list of property that bonds can be paid if the payment is made not by cash, but by other means.

7

Approve the decision to issue bonds. The approval is made not later than six months from the date of the decision on the placement of bonds. The decision is approved by the board of directors or the governing body replacing it. The document containing the decision on the issue must contain the date of signing and be sealed by the issuer.

8

Prepare a prospectus of securities. In case of placement by public subscription, its state registration is required. If a private subscription is bonds among the circle of persons whose number exceeds 500, registration of the prospectus is also required. As a rule, the registration of the prospectus is carried out simultaneously with the registration of the bond issue.

9

Submit the documents to the stateregistration of the bond issue. This should be done no later than three months after the approval of the decision on the issue or not later than one month, if the prospectus is also approved at the same time. The registration body takes a decision within one month from the receipt of the documents.

10

When a positive decision is reached onregistration proceed to the placement of bonds. The placement is carried out within the terms indicated in the registered decision on bond issue. The placement period can not exceed one year from the date of registration.

11

At the end of the placement period, please providethe registering authority the report on the results of the issue. This takes a month from the end of the placement. The report must be approved by the executive body of the company (in accordance with the charter), as well as the chief accountant of the issuing society.

Tip 2: What are bonds for?

In the process of development of human society andthe emergence of economic institutions appeared various instruments for investment - the preservation and augmentation of wealth. With proper use, they helped and helped survive any crisis without losing their investment. The main investment tool is stocks, but do not forget about risk diversification, and for this you need to use bonds.

A bond is a debt obligation, valuablea paper that confirms that its owner has transferred funds to its issuer in the amount of its nominal value, which it will necessarily be reimbursed in a certain period. Most often, a fixed interest is assumed that will not allow the invested money to depreciate.

What do bonds give to companies?

To be where to start, any organization needsinvestments. If there are no sponsors, working capital can be obtained by taking on debt obligations. The company can issue shares - also securities that not only allow their owner to receive income in the form of dividends, and receive their nominal value during the sale, but also participate in the management of the company, as it becomes its co-owner. But if the issuer does not have his own money, he does not agree to share his property with someone and does not want or can not take a loan, there remains practically the only legal method to get money - to issue bonds through the intermediation of the bank. As a result, the company receives funds for development, borrowing them from private investors, and at the end of the period established by the agreement, returns this money with interest.

The difference between a stock and a bond

So, the fundamental difference between these valuablesecurities: the share is an indication that its owner has bought a part of the company and has the right to participate in the management. The shareholder's profit grows along with the issuer's income. The bond is, in fact, a debt receipt, which implies a guaranteed repayment of the debt with fixed interest. As a result, the bondholder's income is fixed and does not increase in proportion to the income of the issuing company. What is better and more reliable - stocks or bonds? Traditionally, there are fewer risks associated with bonds. This is true, but only if the economy is stable in the country. If it is feverish, uncontrolled inflationary processes take place in the country, all profits are "eaten up". Under the same conditions, shares do not lose their value, since their nominal yield only increases. Therefore, investing their money in bonds is in periods of stability or stagnation. In a financial crisis, most of the investment portfolio should consist of shares. And the last moment. Many prefer to invest their money in the bank on a deposit, believing that this is the most reliable way to save and increase money. However, in this respect, bonds are in no way inferior in terms of reliability, while the interest rate on them is often much higher, and hence the owner's income.

Tip 3: What Influences Inflation

The inflation is a normal component of anyeconomic system. It either grows or slows down, and many factors influence it. Each state seeks to contain inflation, but it is not always easy. Sometimes inflation becomes impossible to control, then there is a risk of an economic crisis.

Emission

One of the most significant factors affectinginflation is the issue of money that does not have a real basis, that is, not backed by the goods or gold reserves of the country. Sometimes this happens if the required amount of money is not received to the budget, but it is necessary to spend it to the state, since it is necessary to maintain the functioning of the entire machine of power, to carry out social programs, and so on.

Reduction of production volumes

If the country produces less goods thanit is necessary for the population, but its wealth simultaneously increases, there is an oversupply of free funds and a lack of ways to spend it. Then inflation begins to grow at a rapid pace. In such conditions, enterprises producing goods, it becomes increasingly difficult to survive, which further stimulates inflation.

Human factor

The human factor is the most difficult moment,which is considered uncontrollable. It can happen that as a result of any processes in the people rumors that causes people to spend urgently or invest their savings, do something else. The economy of many countries is quite fragile, and if all residents start simultaneously doing the same financial transactions, it may not survive. For example, if the population starts buying up all the goods of one kind, it will inevitably lead to an increase in prices for them, and after that, prices for other goods can also rise. Similarly, the rate of foreign exchange against the local currency may grow.

Antimonopoly Policy

This factor, unlike the previous ones, reducesinflation. In the event that a single company controls a certain sector in the economy or the price of a specific group of goods, it is easy for it to raise the price by regulating demand. But if there are many such companies, they will not act together, so the cost of goods will remain natural, which will not allow inflation to grow too quickly.

Domestic loan bonds

The government can issue such bonds,to reduce the amount of money involved in the turnover. Later, people who purchased such bonds can receive interest from them. To make this way work, the population must trust the state and be sure that the funds spent on bonds will be returned. Otherwise, it will be easier for the population to entrust their deposits to banks. The interest on bonds and on bank deposits usually coincides. Reduction of funds involved in the turnover, always leads to a decrease in the rate of inflation.

Tip 4: How to pay off bonds

The bond in certain cases provided forlaw, is positioned in the securities segment as a loan agreement, therefore, general provisions of civil law that control the actions of borrowers and creditors and special rules governing the circulation of the securities market are applied to the relations related to the issuance, circulation and redemption of bonds. By such dual regulation, bonded loans are different from the loan.

Instructions

1

If you have a bond, then you are likeholder, you have the right to receive its face value in the provided lines or the property equivalent. Payment is provided by the person who issued the bond. In parallel, the holder is entitled to receive a fixed percentage of the nominal value or property rights. Refer to art. 816 Civil Code.

2

The nominal value of a bond is expressed instate currency. Take into account that foreign currency or currency values ​​can be considered as the subject of a loan agreement, observing the rules of articles 140, 141 and 317 of the Civil Code of the Russian Federation. This means that in the rights fixed by the bond, a special procedure for determining the equivalent of the nominal value in rubles can be established.

3

Legislative acts in the part concerning paymentson bonds, provide for the possibility of an alternative redemption of the bond. You, as the holder, can convert convertible bonds into shares, change them to bonds of other series or get a housing certificate. In the latter case, you will be given a property in the residential premises, which is the object of raising funds, which were received from the placement of bonds.

4

Watch for the maturity of the bond,determined by a calendar date or a time interval. If on your bond the issuer has established the date of fulfillment of obligations under the bond, then its repayment will take place on the specified calendar day. If you are talking about a period of time, then you, as the holder, send the person who issued the bonds an appropriate application for repayment. The Issuer will fulfill its obligations under the bond before you in the order of receiving applications from other bondholders.

5

Consider the nuances that arise in the questionalternative bond redemption. If your bond provides for property rights, then, as a bondholder, you can receive services, goods, products provided by the issuer of the bond. However, the fee may not be charged or discounted at a reduced price. Therefore, be careful when you first study the terms of the bond