Valuation of securities is determination of market value of equity securities (ordinary and preferred shares), debt securities (bonds and bills), derivatives (options, futures) issued by public authorities, financial institutions (stock exchanges, banks), enterprises and organizations.
The basic situations for securities valuation:
- Securities purchase-and-sale transactions
- Restructuring enterprises
- Share based transactions
- Determination of the value of a collateral to obtain loans
- Transfer of securities into trust management, etc.
- Determination of the present market value of a company and its assets.