The term "issue" is derived from the French word émission, which means "issue". Indeed, an issue is a procedure performed by an issuer to issue securities and banknotes into circulation.
Money supply can be of two types: non-cash and cash. The state in the person of the Central Bank is engaged in increasing the money supply. Once it puts into circulation a certain number of banknotes in cash.
Money emission is carried out according to certain principles.
Banknotes issued are not backed by gold.
In Russia, the ruble is the only legal means by which payments are made.
Issue, organization of circulation, withdrawal of money supply is carried out only by the Bank of Russia.
The decision on the issue, circulation and withdrawal of money in Russia is taken solely by the Board of Directors of the Bank of Russia.
Old banknotes can be exchanged for new ones without limiting the amount. Such an exchange of money may not last less than 1 year or more than 5 years.
Non-cash issue is the creation by banks of deposits and credit lines. This type of money supply can be dealt not only by the Central Bank, but also by commercial banks. They can increase the volume of loans issued if their deposit accounts and reserves are constantly growing. This process of creating non-cash money is called credit animation. By volume, non-cash issue significantly exceeds the issue of cash banknotes.
Abroad, emission is the process of issuing money supply by central banks and the treasury. Banks create cashless funds - banknotes. Treasuries are engaged in the issuance of bargaining coins and treasury bills.
Issuers can place their equity securities (all shares, one-time bonds, financial bills) in the stock markets. Emission is a complex and expensive process. Therefore, the grounds on which the number of these documents is increasing should be very significant. The main objectives of the issue may be:
Securities are created during the formation of a joint stock company to create authorized capital.
Increase in the authorized capital of OJSC, attraction of borrowed or non-borrowed investors.
Reorganization of an open joint stock company or its creation from several legal entities.
Crushing or consolidation of already placed securities.
Decisions on the issue are made by the issuer on the basis of analysis of stock market conditions. The attractiveness of investing is evaluated. The cost of the event is calculated whether this issue is beneficial. The determination of the volume of issued securities, form, par value and their quantity are necessary for these calculations.
After the decision is made, the issuing company registers the securities with state authorities at the place of business. The organization presents copies of constituent documents, an application for registration of a standard form, a decision on the issue. Registration authorities as required may require prospectuses, a decision by the executive on the issuance of valuable documents.
Placement of equity securities begins 2 weeks after the announcement of their issue and lasts no more than a year. Information on the value of a block of shares or bonds is disclosed on the day they begin to circulate. Results on sales of equity securities are published in the media. One month after the completion of the procedure, a report on the results of the event is submitted to the registration authority.