Securities law regulates the relations of entities participating in the capital market, including the issuance, placement, circulation, and public trading of securities. Its purpose is the protection of investors' rights, ensuring market transparency, and maintaining the stability of the financial system.
Securities are financial instruments that confirm the property or non-property rights of their holders. Among them, the most common are stocks, bonds, and derivatives. Each type has a different risk, income mechanism, and legal regime, which is important for both issuers and investors.
The issuance of securities implies the offering of new financial instruments to investors by the issuer to attract capital. Public placement requires compliance with the requirements of the legislation, including the requirements related to the preparation of a prospectus and public placement. This process provides investors with complete, accurate, and timely information for making an investment decision.
The organization of trading in securities is provided by the stock exchange. A stock exchange is an organized market for securities, which ensures the collection of proposals for the purchase and sale of securities and other financial instruments, the organization of trading in accordance with established rules and procedures, and disseminates information about concluded transactions and other information related to prices. Trading on stock exchanges is subject to strict requirements established both by legislation and the internal rules of the exchange, which aims to prevent market manipulation and unfair practices.