Owning Company Securities On the Blockchain Introducing Mobu 205 Steem Dollars Writing Contest- My Entry

Mobu is the blockchain of securities. With Mobu companies will be able to launch their own token representing company securities.

This will be a different experience for investors since they will have full control of their investments. The tokens can be traded on the network for other assets in the blink of an eye.

The securities market has remained unchanged for decades. Using blockchain technology Mobu is looking to revolutionize the way people invest in companies.

Mobu will have an escrow service, SEC approval, KYC, and AML which will make listing a company far more easier than traditional methods.

Mobu will be a far more efficient way to own shares since they will be easier to trade on the blockchain.

On a traditional stock exchange you have to contract a broker during business hours to trade. The time it takes for the trade to take place takes longer than the investor would like it to which is frustrating. Blockchain technology offers instant 24 hour trading. The securities market on the blockchain will be much faster than traditional markets.

Mobu ICO will launch a Fundrasing Pre-ICO with two round and a crowdsale on Cryptob2b.io. The ICO will have the highest security protocols to protect investors.

What are Securities?
A security is issued by the company to investors. A security is a financial representation of monetary value that is held by the investors. There are two types of securities debt and equities which may operate differently depending on the company that issued it. The security gives the investor a position in a companies publicly traded stock making them an owner of the company.

The Different Types of Securities

• A Debt Security constitutes money that was lent to a company by an investor that must be repaid. The security states the amount of the loan & conditions on the interest rate, date when the security is due for renewal, and the when the security will be terminated. Investors can choose from corporate or government bonds. There Certificates of Deposit, CMOs and CDOs which are collateralized securities which give the holder the right to interest payments and reimbursement of investment. The owner of the security will receive their payments no matter what situation the company finds themselves in. The security is issued for a limited amount of time. Once the security has expired the company can buy back the security. Collateral can back a debt security. If the security is not backed by anything it is then a contract between the investor and the company which if the company declares bankruptcy can only be repaid once liquidation of the corporation in completed.

• When an investors owns a part of a company that is an Equity Security. A holder of an equity security is a shareholder which has partnered with the corporation. The shares that the investors hold is capital stock that can be preferred or common stock. Holders of Equity Securities are entitled to dividends but do not receive regular payments. If the equity security goes up in value investors can make a profit from selling their shares. One of the most positive aspects of an Equity Security is that it gives the holder depending on how many shares they own control of the company. This gives the investor the ability to provide input on what direction should the company take in order to maximize profits. Investors also have the right to vote on company issues. If the company goes bankrupt creditors will be paid way before any investor receives a residual investment. This is something that all investors try to avoid by selling when they get feel the company is in trouble.

• A combination of various aspects of debt and equity securities are Hybrid Securities. When shareholders can buy stocks at a precise timeframe those are equity warrants. If an investor has the ability to convert bonds into company shares those are convertible bonds. When the investors stock takes priority over all other stockholders those are preference shares. Preference Shares provide priority in repayment of investment, and dividends. Preference Shares are basically fixed-income securities. Preference shares act like debt security since they act more as a bond.

• When it is in paper form that is a Certificate Securities.

• When it is negotiable and transferable that is a Bearer Securities.

What Do We Need Securities For?
Securities give people the chance to own portion of a company that could provide for them extra revenue that they would not normally get in their job.

Securities provide not only an opportunity to investors but companies to reach their goals. These interactions can progress society as a whole trough innovations that improve the world.

This symbiotic relationship is an excellent option to simply letting your extra money sit in a bank losing value. Using Mobu to invest in securities will be far more effective.

Sources
https://www.mobu.io/assets/mobu_whitepaper.pdf?80172489074
https://www.investopedia.com