Securities, A Way To Financial Guarantee of Companies having Abstract Properties and Human Capital
Ahmad Ali Mohassesi, Seyed Rouhollah Hosseini Moghaddam, Maryam Tork

Changing properties into securities is a process in which companies and banks separate their properties from their balance sheet and through this method can issue bonds, consequently they can get new financial resources. Within the last two decades, lots of companies have taken steps to release bonds and raise finance. Using frozen properties and assets of companies to raise money, better risk management, more efficient agencies' activities, & reducing costs of finance have all been benefits to securities. Brand has been one of valuable properties of companies, especially in those knowledge based (companies in the IT & Advanced high-tech Technologies) & special human skills (for instance football clubs) which cannot be reflected in companies' financial statements as invisible/intangible assets. In this article it has been tried to introduce new way of issuing bonds named “Brand Beneficial Securities”, using general process of securitization. Also an executive structure has been suggested to release them for knowledge-based companies and those which are human skills-based having a well-known and famous brand. Then clarifying its benefits and risks have been focused on and also techniques and necessary tools to manage and minimize different kinds of risks on these bonds are explained. Finally, some advices are given to execute this financing tool.

Full Text: PDF     DOI: 10.15640/jfbm.v6n1a3