Corporate Bonds аnd Тheir Bookeeping Records

Abstract

In the Republic of Macedonia there is a single stock exchange  of securities which operates as Macedonian stock exchange. Since its establishment until today, according to the legal regulations, the Macedonian Stock Exchange is the only place where trades in securities in Macedonia have been realized, primarily due to the fact that for such a small market the concentration of offers and demands of securities  is a key factor in improving the financial situation in the economy and  increasing of this type of transactions. When it comes to the market of bonds, then it can be emphasized that a key limiting factor for its development is the non existence of a wide range of bonds. Except the  government bonds, in the Republic of Macedonia there are also corporate bonds that are classified according to the type of issuer of bonds i.e. public enterprises, transport and industrial enterprises, bonds of banks, etc. This type of bonds contain a real risk of non-payment, and they  are not issued without pledge-collateral. Regarding the level of liquidity, they are with  less liquidity than the government bonds, but on the other hand they offer significantly higher rates of return than long-term government, municipal and agency bonds. The financial market is fulfilled  with variety of forms, characteristics and structure of securities, but the most important are those that can be found in the portfolio of the investors, regardless of whether they are in the portfolio of managers or individual investors - individuals. In fact, the portfolio is structured through selecting securities according to  durability, return, liquidity and the investment preferences or the knowledge of the sector of interest. The prices of these securities vary and are affected by the changes of the prevailing interest rates and their specific risk factors. Investing in securities, like any other investment bear risks. However investing in bonds is a less risky form of investing than investing in stocks, especially if gоvernment and municipal bonds and bonds from profitable companies with high credit rating are bought.