Before entering the stock exchange and becoming an object of trading, a security undergoes a listing. This is a kind of audit – specialists thoroughly study the issuer and assess its solvency.
After verification, the assets are included in one of three listing levels – depending on the risks.
The first two levels are the most reliable assets, they are included in the quotation list.
The third is riskier securities. They are also traded, but are not included in the quotation list.
Securities categories
We will tell you more about the three categories of assets.
Level I (quotation list)
The most reliable securities, their risk is minimal. This does not mean that their holders are guaranteed to make a profit, but the probability of losing money is lower compared to others.
This includes OFZs and shares of the largest Russian companies: Sovcombank, Gazprom, Transneft, Lukoil, Norilsk Nickel and others.
The securities and their issuers meet strict requirements. For example, the volume of corporate bonds issued is not less than 2 billion rubles, the company’s age is not less than three years, and so on.
Level II (quotation list)
The most numerous group of assets. This includes securities that do not reach the first category. The requirements for them and their issuers are less stringent. For example, the minimum period of the company’s operation is one year, the volume of corporate bonds issued is not less than 500 million rubles, and so on.
This category includes, for example, bonds of T-Bank, KAMAZ, Megafon.
Level III (non-quotation list)
Includes assets that meet the requirements of the exchange, but are not included in the quotation register due to their risks.
This category includes, for example, Rosgosstrakh shares and Russian Post bonds.
If you do not understand the intricacies of the exchange and do not want to waste time studying, choose more conservative instruments. For example, a bank deposit. Money in deposits up to 1.4 million rubles is insured by the state, which means the risk of losing it is minimal.