WHAT IS BONDS

WHAT IS BONDS?
In the Turkish Commercial Code; are the debt securities issued with the condition that the nominal value of the joint stock companies is equal and the same is the same. In other words, they are issued in government treasury or joint stock companies issued with the guarantee of future income in order to provide resources for themselves. They are generally issued with maturities ranging from 1 to 10 years.
WHAT ARE THE FEATURES OF BONDS?
- The holder of the bond is the long-term creditor of the institution issuing the bond.
- The bond holder does not have any rights other than the receivable on the company that issued the bond due to providing foreign capital to the issuer.
- The first payment is made to the bond holder over the company's gross profit. And after the bond receivables are secured, there is no claim on the assets of the company that issued the company.
- The maturity specified for the bond is final. And at the end of this period, the entire legal relationship ends.
- It can also be sold under bond value.
Government Bonds and Private Sector Bonds; Government Bonds issued by government treasury and bonds issued by companies are divided into two as Private Sector Bonds. Maturity of government bonds is at least 1 years; Private sector bonds are issued with at least 2 year term. Government bonds have less risk than private sector bonds. The Company cannot issue more bonds than the paid-in capital.
Government securities; can always be converted into money and used in tenders. Interest and maturity rates are determined according to CMB. The money obtained through bond sales is deposited in a special account at the Central Bank of the Republic of Turkey. The interest rates of government bonds are higher than other bonds in the market. Payment of principal and interest in government bonds is exempt from tax duties and duties.
Premium Bonds and Head-to-Head Bonds; If the bond is put on the market with a written value, it is a head-to-head bond. However, placing it on the market for less than a written value constitutes a premium bond.
Bearer and Registered Bonds; If the name of the owner is indicated on the negotiable documents, it is not registered name, no name is given and the bonds that the holder has the right to receive are bearer bonds.
Bonus Bonds; Bonds that provide additional interest to the bond holder in order to sell more bonds. However, such bonds are not used in our country.
Guaranteed Bonds and Non-Guaranteed Bonds; If a bank or company guarantee is given to the bond in order to increase sales, it is guaranteed bond. However, when the bonds are issued normally, they become unsecured bonds. There is less risk in guaranteed bonds.
Bonds That Can Be Converted into Money; Bonds that can be converted into money at any time without waiting for the maturity of the bond are called bonds with ease of being converted into money.
Fixed Interest and Variable Interest Bonds; If the interests of the bonds change according to the demand in the market, they are floating rate bonds. However, 3 month, 6 month and 1 yearly bonds and fixed interest bonds are fixed interest bonds.
Indexed Bonds; Indexed bonds are formed when the principal of the bond is increased and paid to the owner according to the increase percentage of gold or exchange rate. The increase percentage is calculated for the periods between the issuance of the bond and the maturity date.
VALUE AND PRICE IN BONDS
Nominal value; It is also called nominal value. It is the value written on the bond. The principal amount to be given to the bond holder at the end of the term.
Export Value; It is the sales price determined by the company after it is put up for sale according to the demand for bonds. And it is generally below the nominal value.
Market value; This is the transaction value of the bond in the market.
WHAT IS THE BONDS?
According to the form requirements in the TCC, there are conditions that a bond should have. Company title, subject of the company, headquarters of the company, duration of the company, trade registry number, capital amount, date of the articles of association, status of the company according to the latest balance sheet approved, nominal values ​​of the issued and new bonds, amortization method, interest rate and maturity , the date of registration and announcement of the general assembly resolution on issuance of bonds, whether the securities and real estates of the company are shown as pledge or collateral for any reason, and at least two signatures authorized to represent the company.
DIFFERENCES BETWEEN BONDS AND SHARES
While the shares give partnership to the holder, the bonds give only the right of receivable. This is not the case when the person joins the management of the stock. While there is no maturity in the stock, there is maturity in the bond. The stock has a variable yield and the bond has a fixed yield. While there is risk in stocks, the risk ratio in bonds is low.