Bond is a security issued by an emitter that determines the rights of its
holder to payment in favor of such holder of particular (interest) bonuses of
their tangible equivalent and its nominal value. All the rights including
additional rights of a bondholder are described in the applicable Russian laws.
Bond is the most popular type of securities in Russia. The purpose of bond issue
is raising funds of the commercial organizations; and for the state, the bond
issue is one of the main ways to close the budget gap and to mobilize monetary
funds of the country.
Appraisal of bonds lies in the fact that during the life period of bond its
holder shall receive the amount equal to the price at which the holder bought
such bond. The peculiarity is that the amount of payments to be received by a bondholder
is time-stretched; therefore, all the future money flows must be discounted by
the date on which the bond is appraised. The profitability of the similar financial
instruments shall be used as a discount rate.
Our firm appraises secured bonds, non-secured bonds, revocable bonds, deferred
bonds, extensible and constricted bonds, serial bonds and convertible bonds.
purpose of fund raising, currently, the Russian companies and banks often use
such equities market instrument as a promissory note. In accordance with the Russian
Civil Code, transferable promissory note is an object of civil rights bearing
hallmarks of a thing and may be subject to sale and purchase, exchange, gift,
etc. In other words, at the stage of transfer, a promissory note is used as an
asset having definable value.
The basis of promissory note appraisal is determination of its value as a financial
instrument abling to yield profit for its holder. The main ways to yield profit
are receiving of interest or acquisition of promissory note at the price less
than its nominal value. Therefore, in the course of appraisal our appraisers analyze
promissory note profitability and financial market situation, and determine the
confidence level of promisor, payer and other parties liable on the promissory
Promissory note appraisal is a rather complicated issue that requires considering
many different factors.
Our firm appraises promissory notes (including transfer notes) issued by legal entities
value is determined by supply and demand situation on the open securities
The appraisal of stocks is a first step to make your investment reasonable.
Fundamental analysis of situation on the stock market allows us to protect
investors against errors at the continuous marker price fluctuation conditions.
Appraisal of the block of stocks can be performed for determination of the
market value of ordinary and preferred stocks emitted by open or close joint
In accordance with the Russian laws, a stock or a block of stocks may be used
as a subject of various transactions (for instance, sale and purchase
transactions). Therefore, they are used as the goods and the specific features
of the stocks or the blocks of stocks as the goods can be identified. It is known
that almost every item of goods has a tangible physical form. However, stocks
and blocks of stocks do not always have material form. For instance, they may
exist in a documentary or non-documentary form. In contrast to conventional goods, a stock or
a block of stocks may have limitations with regard to change of ownership. Such
limitations are based on the type of joint stock company (open or close joint
stock company) and on the type of stocks.
The selection of appraisal method depends on whether the stock is listed on the
stock exchange on not. If the stock subject to appraisal is listed, it is
necessary to calculate it weighted average price on the date of appraisal. If the
stocks subject to appraisal are not listed, the appraisal procedure will be
much more difficult. In such case, the entire company’s business shall be
appraised firstly and after that the value equal the block of stock subject to
appraisal shall be appraised.