Practical subtleties of bonds mechanisms

Author:Univ. Prof., PhD Elena DOBRE

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Keywords:bonds circulation, securities, ownership rights, related rights, National Commission for Securities (CNVM), special characteristics

Abstract:
Bonds are papers/documents in materialized or dematerialized form which are assets and which generates rights and obligations to the owners, respectively, to the issuers, resulting from commercial or financial operations and which can be negotiated on a market. On the secondary capital market, these bonds are also known as securities, suggesting an investment, which generates financial gains. In the French accounting, these bonds are also known as equity instruments and they are formed of securities defined as follows: participatory bonds, portfolio investments and other placements. \r\n\r\nIn the International Accounting Standards and International Financial Reporting Standards approach, bonds are securities represented by any contract, which generates at simultaneously a financial asset for a company and a financial debt or an equity instrument for another company. \r\n\r\nThe correlation between bonds and financial instruments was pointed out by IAS 39, which defines the securitization as the process for transforming the financial assets in bonds.\r\n

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