väärtpaberitele

Väärtpaberitele (Estonian for "securities") are financial instruments that represent an ownership position or a credit obligation. They are issued by corporations, governments, or other entities to raise capital. There are two main types of securities: equity and debt.

Equity securities, also known as shares or stocks, represent ownership in a company. When an investor buys shares, they become a partial owner of the company and are entitled to a portion of its profits. Equity securities can be further classified into common and preferred stocks. Common stocks typically carry more risk but also offer the potential for higher returns. Preferred stocks have a higher claim on assets and earnings but usually do not carry voting rights.

Debt securities, on the other hand, represent a loan made by investors to the issuer. These can include bonds, which are fixed-income securities, and debentures, which are similar to bonds but often have more flexible terms. Debt securities carry less risk than equity securities but typically offer lower returns.

Securities are traded on financial markets, such as stock exchanges or over-the-counter markets. They can also be issued and traded privately. The value of securities is determined by supply and demand, and they can be bought and sold by individuals, institutions, and governments.

Regulation of securities is crucial to protect investors and ensure fair and transparent markets. Regulatory bodies, such as the Estonian Financial Supervision Authority, oversee the issuance and trading of securities to prevent fraud and market manipulation. They also enforce disclosure requirements to provide investors with accurate information about the securities they are considering.

In Estonia, the capital market for securities is an important part of the economy, contributing to economic growth and development. It provides a platform for companies to raise funds for expansion and innovation, while also offering investors opportunities for wealth creation and portfolio diversification.