What is meant by “equity financial instruments and non-equity”? To outline its main features , we must make reference to Article 2346, which states that a company has the right to issue bonds is that financial instruments resulting from collaborations corporate and tertiary.

The financial instruments in question relate to large corporate enterprises sector, regardless of whether to be quoted or unquoted. The shareholders and investors, thanks to the income from their investments, they offer a number of means by which to manage the economic and administrative rights. What characterizes them is their complete autonomy in defining the statutory rules. The holder may at any time decide if additional bonds or convert them to transform nature. Their circulation in the market takes place in different ways, although usually prefers the classic regulatory contract between the two parties.

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The contract shall specify the precise conditions in which a lender agrees to lend money to the borrower in exchange for regular payment of principal and interest for a specified period of time . Debt securities include loans, mortgages, leases, notes and bonds. Each shape can be guaranteed or not guaranteed: in the first case, it involves placing an underlying asset as collateral for the loan. In the second type instead, there is only based on mutual agreement.

The company uses the tools participatory when it needs to increase its revenue without necessarily focus on stock trading, especially in periods when the budget does not allow it because at fault. They, having no legislative restrictions, make it much easier and faster practices of issue. However, this does not mean that do not exhibit any regulation. Article 2351 The requirement states that each instrument has the right to vote and to a person who has legal custody. Unlike non-equity, are equity instruments, and members will have a certain stake. More significant is the amount of shares that a single investor owns, the greater the share of investment in the company . When credit instruments provide payments over a set period of time, you get a variable return based on the success of the business.

The non-equity instruments represent all sources of investment that does not fall within the traditional financial sector, such as non-governmental bodies or nonprofit agencies. They are essentially a measure of economic activity and the relative productivity, as they reflect fairly faithfully the reality in which they are inserted. The modern economy often used to them, because they provide the additional funds are essential to maintain a stable income.