9. Bills of Exchange.

Sola or a bill - a financial document, drawn up in a strictly ordered form that contains an unconditional order creditor (drawer) to the borrower (the drawee) for payment within the specified period certain amount of money indicated in the bill , a third party ( payee ) or to bearer notes . May be one of the documents of title of the foreign contract.

Person in whose favor a bill is issued, is the payee. As the payee can act as a third party, and the drawer. Designation of the payee-indispensable requisite notes on the Geneva Uniform Law promissory note.

A bill must necessarily contain the following information .

• The name "bill " included in the text of the document and expressed in the language in which the document is made .

• Simple and unconditional offer to pay a certain amount.

• Name of the payer .

• The payment deadline .

• Indication of the place in which payment must be made .

• Name of the person to whom or by whom the order of payment must be made .

• Date and place of the bill.

• Signature of the drawer .

The absence of even one of these details will make the bill invalid ( turn it into an ordinary promissory note , which would not be considered a bill of exchange and not subject to the law of bills of exchange ) . At the same time there are some exceptions . So if no maturity , the instrument is payable on demand. If not named the place of payment , they will be billing address , and if the place of drawing - then the address of the drawer .

9. What does it mean «Bond»?

Bond - Emission debt security whose owner is entitled to receive from the issuer of the bond within the specified period of its nominal value in cash or in the form of other property equivalent . Bond also can provide the right owner ( holder) to the interest (coupon) from its nominal value or other property rights.

Total income on bonds are payable is interest ( coupons) and the size of the discount at purchase.

Bonds are an additional source of funds for the issuer , being the equivalent of the loan. Sometimes their release is targeted - to fund specific programs or facilities , the income from which further serves as a source for the payment of the bonds .

Economic bonds are very similar to lending. Bonds allow you to plan the level of costs for the issuer , and the level of income for a buyer, but do not require collateral execution and simplify the procedure for transfer of requirements for a new lender. In fact, the bond market are made of medium-and long-term loans , usually for a period of 1 year to 30 years.

As investment bonds are attractive fixed period of treatment on the market and fixed income that allows you to accurately predict the size of the profits from these investments . This significantly reduces the risk of investment in bonds than shares , the proceeds of which depends on many factors and are difficult to predict the long term.

Bonds can be classified according to any of the grounds : the issuer , maturity , type of income , convertible currency, the Target Release , investment attractiveness and rating .

By issuers

• Government bonds or sovereign bonds

• Municipal bonds .

• Corporate bonds.

By type of income

• Discount bond .

• Bond with a fixed interest rate

• Floating rate bond

By convertibility

• convertible bonds

• Non-convertible bonds .