What is size on the stock exchange? Basic terms. How data is usually displayed on charts of financial instruments

The entire set of relationships that take place during the exchange of various kinds of material and intangible goods through the mediation of money (as a universal means of payment), in economic theory commonly called the financial market.

Financial markets can be called the driving force and basis of the mechanism of the modern economy. The more coordinated and efficient they work, the faster the economy develops.

Introduction

Exchange of some economic goods for others, exchange of the currencies of some countries for the currencies of others, trading in securities, lending, etc. – all these are types of transactions performed on the modern financial market. And in the case when we are talking about such operations carried out on the scale of entire states among themselves, then we are already talking about the global financial market.

Thus, according to the scale of operations, the financial market can be divided into two main categories:

National financial market;
International financial market.

In the national market, transactions are carried out on the territory of a single state. Accordingly, it is fully subject to national legislation. And the international market is nothing more than the totality of all individual national financial markets and therefore cannot be subject to the laws of any individual state (it has international norms, rules and standards specially created for these purposes).

In the modern economy, there are two main models of financial markets that have developed in countries continental Europe and America:

The continental model, based on bank financing, is also called the continental model or bank based financial system.
Anglo-American model based on the securities market and institutional investors (market based financial system).

The continental model is distinguished by a less developed secondary market and non-public placement of securities (a relatively small number of shareholders and, accordingly, a high degree of concentration of share capital). In the Anglo-American model, on the contrary, the secondary market is much more developed and there is a pronounced tendency towards public offering of securities.

However, over time, these two models increasingly converge with each other and the boundaries between them are gradually erased.

Forms of existence of financial markets:

In the form of an organized structure (for example, an exchange, where all trading operations are carried out according to strictly defined rules);
In the form of direct agreements (for example, the interbank market);
In retail form (for example, the market for banking services for individuals).

Finally, all financial markets can be classified by industry:

Derivatives market;

Money market

Economic relations for the purpose of receiving or providing Money for short periods (up to one year) were called the money market.

The money market has three main components:

Short-term securities;
Interbank loans;
Eurocurrencies.

All money market participants can be divided into three categories:

Lenders or those who provide money for temporary use. This category includes banks, non-bank credit institutions, and other financial organizations;
Borrowers or those who borrow money. This category includes individuals, state and municipal structures, various types of enterprises and organizations, etc.;
Financial intermediaries provide a link between the two aforementioned categories of money market participants, although, in principle, their participation is not always necessary. These include banks, professional participants in the securities market (brokers, etc.), etc.

All of the above categories of money market participants have one common goal - everyone intends to benefit. Lenders make a profit due to the interest rate at which they issue loans. Borrowers intend to make a profit from the use of borrowed funds. And the benefit of intermediaries lies in the commission that they charge from lenders and borrowers for bringing them together and often acting as a guarantor of the transaction concluded between them.

Below is a picture illustrating the main money market instruments:

Capital market

This branch of financial markets includes long-term financial transactions (loans, investments, etc.). In essence, this is the same money market described above, but only with financial maturities exceeding one year.

So-called long-term money circulates here; capital is invested in various kinds of long-term financial instruments (stocks, long-term bonds, etc.).

The capital market has the following structure:

Everything related to the issue of securities and their further circulation (purchase, sale, resale) directly relates to the next branch of financial markets - the stock market.

It includes not only organized trading platforms - exchanges, but also the so-called over-the-counter component. Securities of the largest and most reliable issuers are quoted on the exchange market (including securities related to blue chips), and the over-the-counter market serves as a haven for securities classified as risky (for example, shares of the second and third tier that are not included in the exchange floors).

The securities market can be classified according to the following main criteria:

By level of placement of negotiable financial instruments:

Primary. Here, as the name suggests, an initial placement of securities occurs (this can be either a public (IPO) or a private placement);
Secondary. This is the market most known to a wide range of people, where, in fact, the bulk of securities trading operations take place. It includes all stock exchange platforms;
Third. This is an over-the-counter market and those securities are traded on it that, for certain reasons, could not be listed on official exchange platforms;
Fourth. Large institutional investors trade here. Trading takes place in in electronic format, large blocks of shares (or other securities).

By type of financial instruments traded:

Stock market;
Bond market;
Derivatives market, etc.

By degree of organization:

Exchange;
OTC;

By level of globalization:

Regional;
National;
International.

By issuer of traded securities:

Enterprise securities market;
Government securities market.

By longevity of traded financial instruments:

Short-term securities market;
Medium-term securities market;
Long-term securities market;
Perpetual securities market.

By industries to which issuers of tradable securities belong.

Derivatives market

This is a market for derivatives (derivative financial instruments) with a specific expiration date (hence the name). The following financial instruments are traded here:

Forward contracts;
Futures;
Options.

Based on the degree of organization, the derivatives market is also divided into:

Exchange;
OTC.

Trading in the derivatives market is characterized by a higher degree of risk compared, for example, with the stock or bond market. This is explained by the fact that in this case leverage is used (the so-called). In addition, another difference here is the possibility of opening short positions (the possibility of shorting a particular financial instrument acting as an underlying asset).

Transactions on the derivatives market are concluded for the purpose of hedging positions open on the underlying asset, in arbitrage strategies or (in the foreign exchange market).

Foreign exchange market (FOREX)

The international currency market Forex (Foreign exchange market) is a system of financial relations, the purpose of which is the purchase or sale of some foreign currencies for others. According to the volume of transactions performed, FOREX market significantly exceeds all other financial markets.

The FOREX market does not have any specific trading platform (such as an exchange), it is rather the entire set of communications connecting its largest players (banks, transnational corporations, brokerage firms, etc.).

The main participants in the foreign exchange market are:

Central banks of countries. Their main activity here comes down to managing national foreign exchange reserves in order to regulate the exchange rate of their currency. For this purpose, they can carry out so-called;
Banks (mostly international). This is one of the types of institutional investors in the Forex market. It is through them that the main volume of all passes here. financial flows;
Companies engaged in import-export operations, for example, for the purpose of purchasing raw materials and selling finished products;
Various types of funds (investment, pension, hedge) and insurance companies. They conduct operations here in order to diversify their portfolios as much as possible by purchasing various types of securities outside their country;
National currency exchanges. These operate in a number of countries and their main purpose is to quote their national currency against a foreign one, as well as currency exchange for legal entities;
Brokerage firms and dealing centers acting as intermediaries for carrying out trading and exchange operations on FOREX;
Finally, private individuals. The contribution of each of them individually may be completely insignificant, but in total, the financial flow from international tourism, simple exchange transactions and speculative currency transactions of individual citizens can reach very impressive volumes.

The precious metals market can be identified as another component of the global financial market. It carries out transactions both directly with precious metals and with securities tied to them (futures, bonds, options quoted in gold, as well as gold certificates).

Based on the type of precious metal traded, this market can be divided into the following main components:

Gold market;
Silver market;
Platinum Market;
Palladium market.

Based on the type and volume of transactions carried out, the precious metals market can be classified as follows:

International precious metals market;
Domestic precious metals market;
Black (underground) market for precious metals.

The international market has the maximum trading turnover; large investors, international funds, as well as central banks trade on it. The largest international trade centers are located in cities such as London, Zurich, New York, Hong Kong, Chicago, and Dubai.

Domestic markets for precious metals involve trading operations within the country. They are characterized by certain government regulation, expressed in the setting of taxes, quotas, trade rules, etc.

A black or underground market for precious metals occurs when the government places severe restrictions on such transactions. When, for example, the trade in gold is prohibited, it begins to be sold illegally (by smuggling into the country).

In addition, this market can be classified according to the purpose of the purchased precious metals:

For investment purposes;
For industrial use (for example, in electronics).

This is the youngest financial market represented here. The history of its existence began with the emergence of the world’s first cryptocurrency in 2008 and goes back only about one decade. Its structure is currently not yet fully formed (partly due to the fact that in many countries there is no legislative framework regulating operations carried out with cryptocurrencies), but in general it can be represented as the entire set of existing cryptocurrencies and the infrastructure that provides their existence. This infrastructure includes both computing power, thanks to which new cryptocurrencies are generated and stored, as well as the entire set of organizations involved in their sale, purchase and exchange (cryptocurrency exchanges and various kinds of exchangers).

Cryptocurrency is an asset that is entirely dependent on computing power. The technology of its creation (popularly called mining) is based on computer technology blockchain. Purely theoretically, anyone with a computer connected to the Internet can mine some cryptocurrency. However, in fact, in order to earn an amount equivalent to at least a couple of American dollars in this way, it will take quite a lot of time. The fact is that the very nature of cryptocurrency is designed in such a way that the more it is mined, the more complex this process becomes, and the extraction of new coins (coins) requires more and more computing resources.

Currently, specialized mining farms consisting of many powerful video cards are used to mine cryptocurrencies. You can generate cryptocurrency either using a processor or through calculations on a video card. It so happens that the video card has the architecture most suitable for those calculations through which new coins are created.

Cryptocurrency mining farms can consist of several video cards, or thousands or even tens of thousands. Most of these large farms are located in the Asia-Pacific region, in particular in China (as of the end of 2017, about 30% of the entire global cryptocurrency market was concentrated there).

The most popular cryptocurrencies at the moment are (arranged in descending order of value):

Bitcoin;
Bitcoin Cash;
Dash;
Ethereum.

In addition, there are still a huge number of different types of cryptocurrencies in the world, many of which do not represent and, most likely, will never represent any value.

There are infrastructure organizations providing:

Organization of the trading process (exchanges and over-the-counter trading platforms);
Mutual settlements and settlements for all transactions (clearing houses);
Accounting for the transfer of rights to securities in the process of transactions with them (depositories);

In addition, organizations of this type include all those that provide protection against counterparty credit risk, as well as accounting for over-the-counter contracts with financial instruments, derivatives and contracts on commodity markets.

In our country, financial market infrastructure organizations include:

Exchange;
Central Depository;
Clearing House;
Central counterparty;
Settlement depository;
Repository.

There is also such a thing as systemically important infrastructure organizations. Classification as such is based on compliance with at least one of the following criteria:

Uniqueness criterion;
Criterion of significance for a unified state monetary policy;
Criterion of significance in the financial market.

The assessment of organizations' compliance with these criteria is carried out by the Central Bank of the Russian Federation. Currently, in our country there are the following infrastructure organizations of this type:

To gain a more complete understanding of the financial market, it is extremely important to consider its structure and main elements. The financial market includes the money market, capital market and securities market (Figure 1). Short-term financial instruments with a maturity of less than one year are traded on the money market. Long-term financial instruments are traded on the capital market. The securities market is part of the money market and the capital market, since both short-term and... long-term financial instruments.

Rice. 1 – Financial market structure

Money market includes such segments as the cash market, the short-term treasury market, the short-term commercial paper market, the short-term credit market and the short-term loan market. Functionally, only those short-term loans that are used to ensure the current activities of the borrower can be classified as the money market; Loans used to expand and modernize production fall under the capital market. That is, the money market serves the short-term needs of its participants, and the capital market serves their long-term positions.

For a period of more than one year, financial resources are attracted to capital market. Financial instruments traded in this segment can be divided into long-term and medium-term loans and medium- and long-term securities - bonds and shares. The accumulation of temporarily free resources and their investment is carried out through the circulation of securities on the financial market - special documents that reflect the property rights associated with them, can independently circulate on the market and be the object of purchase and sale and other transactions.

Stocks and bods market represents the sphere in which property relations are realized, financial sources are formed) of economic growth, investment resources are concentrated. This segment of the financial market redistributes investment resources in accordance with market needs, ensures their concentration in the most profitable and promising sectors of the economy, contributes to the formation of the structure of the economy, and also expands and facilitates all subjects economic system access to cash capital. However, the securities market is the financial channel that most effective way transforms savings into investments.

There is another position in defining the structure of the financial market, ‘according to which the financial market includes the market for cash in circulation, the market for loan capital (credit market) and the stock market (securities market and derivatives market).

The money market is a market for means of payment, including not only cash, but also non-cash means of payment. The credit market is associated with the lending operations of banks. The securities market is an economic relationship mediated by the movement of securities. In an expanded interpretation, the financial market includes the insurance market, credit market, money market, securities market, foreign exchange market, pension asset market, investment market, etc.

World financial market- part of the global loan capital market, the totality of supply and demand for capital from lenders and borrowers in different countries. One of the segments of the global financial market is the stock market or securities market.

Basic business entities represented on the global financial market:

1. enterprises;

2. population;

3. governments;

4. professional subjects.

The main functions of the MFR are:

· mobilization and redistribution of accumulated capital between national economies, countries, regions, corporations;

· formation of market prices for individual financial instruments under the influence of supply and demand;

· reducing the costs of financial transactions;

· accelerating the concentration and centralization of capital (formation of large financial holdings), which is especially evident in mergers and acquisitions of commercial and investment banks, as well as stock exchanges.

The international financial market can be primary, secondary and tertiary.

New issues of debt instruments are placed on the primary market. As a rule, this happens with the assistance of large investment institutions.

Previously issued financial instruments are sold and purchased on the secondary market. This market is formed as a result of demand from international investors exceeding the supply of certain instruments in the primary market.

The tertiary market is where derivatives are traded.

Within the framework of the global financial market there are:

· national financial market;

· international financial market.

This division is based on the sign of being under the control of national systems of monetary regulation.

The national financial market means:

1. the totality of loan and borrowing operations of residents, subject to national legislation, in national currency in the territory of the country of its origin (for example, a loan received from a resident bank in national currency);

2. borrowing by residents in foreign currency;

3. borrowing by non-residents in national or foreign currency within the framework of the national regulatory system.

The global financial market does not exist in the form of a single market, it is only a collection of interconnected national markets. The international financial market refers to lending and borrowing operations in currencies outside their countries of origin and, therefore, not subject to direct government regulation by these countries.

Based on functional differences (or depending on the economic content of the transaction), the global financial market, both national and international, can be divided into two main sectors:

World money market;

World capital market.

Money market is divided into: the interbank market (that is, the market for interbank deposits), which is a set of transactions between banking institutions to provide mutual short-term unsecured loans in amounts up to $1 million;

Accounting market - accounting for private and public sector bills (treasury bills), as well as other short-term obligations (other commercial papers).

Capital Market divided by:

Credit market (takes into account the lending mechanism);

Stock market (divided into stock market and bond market).

The features of the MFR include:

Huge scale of transactions (transactions on the MFR are 50 times larger than transactions on international trade in goods);

Lack of spatial, geographic and time boundaries. Operations at the MFR are carried out almost around the clock;

Use of leading currencies (dollar, euro, yen, SDR) in transactions between market participants;

Transactions are carried out at international interest rates (LIBOR, EUROBOR, etc.);

Widespread introduction of national financial markets into the MFR system while maintaining their certain independence. Their place in the MFR system is determined by:

The place and role of the country in the global economic system;

The presence of a developed national financial and credit system;

Stability of the national economy;

Favorable investment climate;

Currency, tax and investment legislation.

MFR participants can be classified according to the following criteria1:

1) the nature of the subjects’ participation in operations:

Indirect.

2) purpose and motives for participation:

Hedgers;

Speculators (traders and arbitrageurs).

3) Types of issuers and their characteristics:

International and transnational agencies;

National governments and sovereign borrowers;

Regional authorities;

Municipal authorities;

Corporations, banks, other organizations.

4) Types of investors and debtors:

Private investors (individuals);

Institutional investors (financial institutions for collective investment).

5)Country of origin/location of subjects:

The developed countries;

Developing countries;

International institutions;

Offshore zones.

34. International financial organizations

International financial organization- an organization created on the basis of interstate (international) agreements in the field of international finance. States and non-state institutions can be parties to agreements.

The goals of an international financial organization can be the development of cooperation, ensuring integrity, stabilization difficult situations, smoothing out the contradictions of the world economy.

MFO objects can be:

· Funds of international institutional organizations;

· International loan capital funds;

· International investments;

· Monetary instruments participating in MFOs;

International financial organizations include:

1. International Monetary Fund (IMF)- an intergovernmental monetary and credit organization with the status of a specialized agency of the UN. The purpose of the fund is to promote international monetary cooperation and trade, coordinate the monetary and financial policies of member countries, provide them with loans to settle balances of payments and maintain exchange rates.

Basic functions of the IMF:

· promoting international cooperation in monetary policy

expansion of world trade

· credit

stabilization of monetary exchange rates

Official IMF goals:

1) “to promote international cooperation in the monetary and financial sphere”;

2) “to promote the expansion and balanced growth of international trade” in the interests of developing productive resources, achieving high level employment and real incomes of Member States;

3) “ensure the stability of currencies, maintain orderly monetary relations among member states” and prevent “depreciation of currencies in order to gain competitive advantages”;

4) provide assistance in creating a multilateral settlement system between member states, as well as in eliminating currency restrictions;

5) temporarily provide member states with foreign exchange facilities that would enable them to “correct imbalances in their balance of payments.”

The highest governing body of the IMF is the Board of Governors, in which each member country is represented by a governor and his deputy.

These are usually finance ministers or central bankers. The Council is responsible for resolving key issues of the Fund’s activities: external changes to the Articles of Agreement, admission and exclusion of member countries, determination and revision of their shares in the capital, election of executive directors. Governors usually meet in session once a year, but may hold meetings and vote by mail at any time. The IMF operates on the principle of a “weighted” number of votes: the ability of member countries to influence the Fund’s activities through voting is determined by their share in its capital.

Authorized capital The IMF is formed from contributions from member states in accordance with a quota established for each country, which is determined based on the economic potential of the country and its place in the world economy and foreign trade. In order to provide assistance to IMF member countries experiencing difficulties in economic development for reasons beyond their control, as well as to assist in solving extensive problems of an economic and social nature. The Fund has created a number of special mechanisms that provide funds on foreign exchange terms. These include:

Compensatory and emergency financing mechanism, funds of which are allocated in connection with natural disasters that have befallen the country, unforeseen changes in world prices and other reasons;

Mechanism for financing buffer (reserve) stocks of raw materials created in accordance with international agreements;

External Debt Reduction and Service Facility, which provides funds to developing countries facing external debt crises;

A structural change support mechanism that focuses on countries transitioning to a market economy through radical economic and political reforms.

2. The World Bank- an international financial organization created for the purpose of organizing financial and technical assistance to developing countries. The World Bank Group includes International (World) Bank for Reconstruction and Development(IBRD) and its three branches - International Development Association(MAP), International Finance Corporation(IFC) and Multilateral Investment Guarantee Agency(MIGA).

World Bank as a specialized UN institution, it provides financial assistance to developing countries, acts as an adviser in the development of programs for their economic development, coordinates the actions of industrialized countries and the development of international economic organizations that provide technical assistance to these states. The supreme body of the IBRD is Board of Governors, consisting of representatives of all member countries of the Bank, appointed by their respective governments for a five-year term. Meets at a session once a year together with the IMF. Countries that have joined the IMF can be members of the IBRD, since they are obliged to pursue monetary and financial policies that comply with the IMF Charter.

Financial market structure

180 countries are members of the IBRD. Current activities are managed by Directorate, consisting of 22 executive directors. The Directorate is headed by President of the Bank. Authorized capital The IBRD is formed by subscription of member countries to its shares. To replenish its resources, the IBRD acts as a borrower on the global financial market, placing bond issues on it in some years in the amount of more than $10 billion.

International Finance Corporation. IFC was created to mobilize domestic and foreign capital for private sector development in developing countries. IFC also lends to state-owned enterprises operating as independent joint-stock companies. Loans are used to implement highly profitable projects in the most developed developing countries, which is associated with the high cost of loans. The supreme body of the IFC is Board of Governors, consisting of managers and their deputies. It can delegate most of its powers (except for the admission of new members, the expulsion of any member, the increase or decrease of the authorized capital, the amendment of the IFC agreement) to the directors. Each World Bank governor (with an alternate) is automatically an IFC governor if his country is a member of the IFC. The annual meeting of the IFC is held simultaneously with the meeting of the World Bank.

Directs current activities Directorate. It consists of 24 directors of the World Bank, whose countries are also members of the IFC. President of the IFC ex officio is the Chairman of the IFC Directorate. TO funding sources The IFC owns members' contributions to the authorized capital, IBRD loans, deductions from profits, funds from repaid loans and funds raised on international financial markets.

International Development Association. IDA and IBRD pursue many of the same goals - providing loans/credits for priority, economically and technically feasible projects within the national economy. While the IBRD, which borrows capital primarily from financial markets, lends on slightly more favorable terms than normal commercial terms, the IDA, which obtains its capital from other sources, provides interest-free loans to the poorest countries. The structure of the IDA is the same as that of the IBRD. Administrative activities are carried out part-time by IBRD staff. IDA's staff is divided into four sectors: operations, finance, policy, planning and research. IDA has three main sources of financing: IBRD profits, contributions from member states, and contributions from wealthy member states. This includes the return of previously issued loans. Every three years, a group of creditor countries (currently 34 states) appoints official representatives who hold consultations on the next raising of IDA funds. The decision to carry out the tenth attraction of IDA funds, used primarily to combat poverty, carry out economic reforms, improve management and ecological environment, was adopted in 1993 (valid until 1996). Each IDA-financed project is subject to political and economic assessment in order to ensure the most effective use financial assistance.

Basic terms and concepts

. Financial market, money market, capital market, interest-bearing bonds, broker, mortgages, dealer, private subscription of securities, open subscription of securities, secondary securities market, underwriter, discounted shares, registered shares, treasury bills, preferred shares, certificates of deposit , corporate bonds, commercial paper, mortgage bonds, banker's acceptances, warrant option, price risk hedging

121 Economic essence of the financial market and its structure

The financial market is considered an integral attribute of a modern market economy. In a political-economic sense, it is a market in which supply and demand for various financial resources are determined. This is a market in which there are sellers and buyers, there is a product that is bought and sold. But this product is special - money provided for temporary or permanent use.

. The financial market is an extremely complex structure with a large number of participants - financial intermediaries, consumers of financial services - legal entities, individuals, the state, who enter into economic relations, operating with different financial instruments.

A characteristic feature of the market is that these relations are realized at the stages of distribution and redistribution of financial resources and means of the ongoing process of expanded reproduction. Therefore, the financial market should be considered as a specific sphere of monetary relations that arise in the process of movement of financial funds between the state, legal entities and individuals with the help of specialized financial institutions.

The main task of the financial market is to ensure the movement of financial resources from those who have a surplus to those who require investment. At the same time, as a rule, they are directed from those who cannot use funds effectively to those who use them productively.

Financial market and securities. Introduction to theory.

This helps not only to increase the efficiency and productivity of the economy as a whole, but also to improve the economic well-being of every member of society. Thus, for a modern market economy, the financial market is the center of the economic organism. Based on the state of the financial market, one can judge the state of the economy, influencing the financial market, and it is possible to manage the economic activity of society.

The financial market performs the following functions

1Pricing function. The financial market sets prices for financial resources that balance supply and demand for them. The price of financial resources is the income paid by the buyer (issuer) to the seller (investor or owner of financial resources) - bank interest, coupon rate on bonds, dividends on shares.

2. Liquidity function. The more efficiently the financial market functions, the higher the liquidity of financial resources circulating on it, since any investor can quickly and almost cost-free at any time transfer financial resources to cash.

3. Cost saving function. The financial market reduces transaction costs and information costs. Financial intermediaries, carrying out large volumes of investment and fundraising operations, reduce for market participants the costs and corresponding risks of conducting transactions with financial resources. Financial intermediaries reduce costs by realizing economies of scale and improving transaction procedures. Anna financial resources offered for sale.

. Structure market may depend on the following characteristics:

— circulation period of financial resources;

— institutional composition;

— the nature of the movement of financial resources

According to the first sign, the market structure is shown in Fig. 121, where the financial market is divided into two main sectors: the money market and the capital market . In the money market short-term financial resources are used (for a period of up to 1 year); on the capital market— medium- and long-term financial resources (for a period of more than 1 year)

According to the institutional composition, the market structure is formed by the following participants: institutions in the financial sector, the state, the population professional participants market - financial and infrastructure institutions, as well as foreign market participants

The state acts as a borrower in the financial market, which regularly places its debt obligations on the foreign and domestic markets. In addition, it performs a specific and very important function - market regulation. Sometimes the state acts as an investor, providing financial support to certain economic entities.

Main types of activities of financial institutions - intermediaries in the financial market are:

— transformation of financial resources (i.e. the acquisition of some assets and their transformation into others);

— trade in financial resources at your own expense;

— purchase and sale of financial resources from the client;

— consulting to market participants, etc.

. Infrastructure institutions market are created to serve it, to ensure normal functioning. Stock and currency exchanges, clearing centers that service mutual settlements between mass market financial entities; depositories, registrars (serve transactions with securities), information and rating agencies provide the necessary infrastructure of the financial market.

. Financial institutions- these are legal entities, residents, who are engaged in the production of goods and provision of services, including financial services. Together with foreign market participants, they either act as investors or issue and place their own financial assets on the market.

. Population performs the role of an investor in the market, purchasing securities or obtaining loans. In countries with developed economies, most of the population invests their own funds in various financial assets. Corresponding processes are also intensifying in the countries of the former socialist camp. So, in. In Poland, there is a massive investment of money by individuals in investment funds. In Ukraine, only a small part of the population is engaged in I. Investing in peri securities.

depending on the nature of the movement of the corresponding financial flows, the financial market is divided into a market direct financing where the purchase and sale of financial resources occurs directly between the seller and the buyer, and the market indirect financing— where purchase and sale is carried out through financial intermediaries

The subjects of the direct financing market are legal entities, the population, the state, foreign market participants, and commercial banks. In addition, brokers who perform a technical function play an important role in direct financing.

. Broker -it is a direct finance market intermediary that performs a technical function(helps the seller meet the buyer of financial resources). The broker receives a commission for concluding a financial agreement, while the conditions for the purchase and sale of funds are agreed directly between the seller and the buyer.

In the indirect financing market, the role of financial intermediaries - dealers - is completely different . Dealers First, they accumulate financial resources intended for sale, and then sell them on their own behalf, putting forward their demands and proposals. Dealers are becoming the main participants in the indirect finance market. One of the main conditions for the activities of dealers is the formation of their own start-up capital. For example, commercial banks in Ukraine (the main financial intermediaries of the domestic financial market), planning to provide financial services in the territory of one city, according to the law, must form an equity capital of 3 million euros.

The financial market is a complex, diverse structure, so there are other ways to classify it

The financial market is the sphere of manifestation of economic relations between sellers and buyers of financial (monetary) resources and investment values (that is, instruments for the formation of financial resources), between their value and use value.

The financial market consists of a system of markets: foreign exchange, capital market, and loan capital or money. A financial market is an organized or informal system for trading financial instruments. In this market, money is exchanged, credit is provided, and capital is mobilized. The main role here is played by financial institutions that direct cash flows from owners to borrowers. The goods themselves are money and securities. Like any market, the financial market is designed to establish direct contacts between buyers and sellers of financial resources.

Financial market- this is a special market in which special goods are sold and bought; money is provided for use temporarily in the form of loans or forever. The financial market consists of a number of sectors: investment, credit, stock, insurance, currency. In the financial market, the object of purchase and sale are financial resources. However, there are fundamental differences in transactions in different sectors of the financial market. If on the credit market money is sold as such, i.e. they themselves are the object of transactions, then on the stock market, for example, the rights to receive monetary income, already created or future, are sold.

The financial market is not only a means of redistributing monetary resources in the economy (on payment terms), but also an indicator of the entire state of the economy as a whole. The essence the financial market is not simply the redistribution of financial resources, but primarily in determining the directions of this redistribution. It is in the financial market that the most effective areas for applying monetary resources are determined.

The concept of “financial market” should be considered as a general one. In practice, this phenomenon is a rather complex structure that combines different kinds markets, each of which has its own segments. Accordingly, it can be classified according to certain criteria.
An immanent feature is the type of financial instrument as an object of relationship. Based on this criterion, the financial market is traditionally divided into:

Credit market. - Securities market. - Foreign exchange market. - Insurance market. — Precious metals market.

55.Capital market (CRM).

Concept, structure. Instruments: stocks, bonds, etc.

The capital market (capital market) is part of the financial market on which long-term money circulates, that is, money with a circulation period of more than a year. In the capital market, free capital is redistributed and invested in various profitable financial assets.

The forms of circulation of funds (financial resources) in the capital market can be different:

Bank loans (loans);

Bonds;

Financial derivatives (Derivative financial instrument (derivative) - an agreement (contract) providing, in accordance with its terms, for the parties to the agreement to exercise rights and/or fulfill obligations related to price changes

underlying asset underlying a given financial instrument, leading to positive or negative financial result for each side)

Sheet music and mortgages.

The money market and capital market are secondary markets for loan capital. Each of them has its own tools, i.e. specific circulating financial assets, which differ in:

Status (stock or bond);

Type of ownership (private or public);

Validity period;

Degrees of liquidity;

The nature of the risk (bankruptcy or market) and the degree of risk (risky, low-risk, risk-free).

Securities market instruments can be divided into three main categories of investment products:

- bonds;

- instruments giving the right to another instrument.

More than 90% of the value of all national and international investment products consists of bonds, which represent the most important area for study.

Bonds are credit agreements based on securities for which there is no single lender, but rather whole line lenders lending their funds to one borrower.

Securitization allows instruments that carry title to be traded on the market. Therefore, bonds represent borrowing that is presented in a form that allows these obligations to be freely traded in the market.

Corporate borrowers can issue bonds of the following types:

- secured or mortgage bonds;

— unsecured bonds;

— convertible secured or unsecured bonds.

Shares - this type of securities can be considered as a perpetual loan that has been

provided to the company in exchange for participation in profits as one of the owners of the company. The main type of shares traded on the capital market are ordinary shares. The initial capital is distributed to shareholders in proportion to the amount contributed when the company was founded. Additional shares may be issued at various reasons so that the company can receive additional funds. The number of shares issued and the price paid for them will vary from issue to issue. It is also important to understand that shareholders accept the risk associated with the operation of the company for a certain share of the profit, but they also usually have a say in assessing the quality of the company's management, as well as in the decision-making process on company policy issues.

INSTRUMENTS GIVING RIGHT TO OTHER INSTRUMENT - This group of securities market products includes one instrument that is created by issuing companies and other instruments that are artificially created by the market and securities companies. The product that can be issued by companies is called a warrant.

Financial market - what it is, structure and participants of financial markets + types and brokers

Warrants are issued to make the underlying asset more attractive (ie they are issued for free in order to command a good price for another instrument). This gives warrant holders the right to subscribe for shares of a company at a specified price at some specific time(s) in the future. The only right that this instrument confers is the right to purchase shares under these terms.

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Studopedia.org - Studopedia.Org - 2014-2018 (0.002 s)…

The financial market is one of the functional parts of a market economy.

In the legal literature, the concept of “financial market” has no definition. However, since it is important for considering the operations of commercial banks with securities, we turn to the definitions used by economists.

The main function of the financial market is the formation, redistribution and use of capital as one of the factors of social production.

The financial market is divided into the stock market (which is based on the securities market) and the money market (the market for bank loans or the market for loan capital). This division is quite arbitrary, but it is carried out in theoretical studies. The criterion for dividing the financial market is the goal of attracting capital by turning to stock or money market institutions. If capital is raised for the purpose of expanding production or updating fixed capital, the stock market is usually used. If it is necessary to cover the need for working capital, they turn to the money market.

The stock and money markets also differ in the terms for which capital is raised. In the stock market, issuers and borrowers raise capital, as a rule, for a period of more than one year, i.e. The stock market is an area of medium- and long-term investment. In the money market, capital is attracted for a period of less than a year, and, therefore, the money market is an area of short-term investment.

The stock market is part of the financial market, mediating investments in fixed capital, primarily long-term investments.

Question No. 2. Structure of the financial market and its segments.

The stock market is the main macroeconomic instrument of the future structure of production, therefore its condition in developed countries is under constant control of government economic regulatory bodies. The core of the stock market is the securities market in terms of so-called investment securities, i.e. securities that mediate investments in fixed capital (stocks and long-term bonds).

The stock market is sometimes called the investment market or the investment market, and activities in it are called the investment business.

The main task of the securities market is to bring together persons who need to attract capital (issuers of securities) with persons who have a need to allocate financial resources (investors).

The very concept of the securities market has given rise to numerous controversies. The securities market is often called the stock market.

The securities market has the following structural division: - primary market, which means a set of transactions for the placement of securities, the sale of securities by their first

owners;

Secondary market, i.e. transactions for the resale of previously issued securities.

Credit institutions can be participants in both the primary and secondary markets.

The money market is a part of the capital market that mediates the reimbursement of working capital needs for a period, usually less than a year.

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Financial market

Financial market: concept, structure. The role of the stock market in the formation of funds

The financial market is an integral part of a perfect market economy, which, in turn, is a system of organizing the national economy based on commodity-money relations, diversity of forms of ownership, economic freedom and competition of economic entities in the production and sale of goods and services.

In the domestic literature you can find several definitions of the financial market.

For example, the financial market is “the sphere of operation of the financial and credit mechanism.”

I.T. Balabanov believes that the financial market is “the sphere of manifestation of economic relations between sellers and buyers of financial resources and investment values (that is, instruments for the formation of financial resources).”

In this financial market, capital is redistributed between lenders (savers) and borrowers (investors). Since in a market economy most savings are made by households and most investments are made by firms, the purpose of the financial market is to transform savings into investments.

Investment financing from savings is carried out:

in the securities market - through direct financing channels (sale of shares and bonds to households - savers).
in the money market - through indirect financing channels with the help of financial intermediaries - banks, pension funds, insurance companies.

Equilibrium is established in the financial market if

, (15)
where - savings; - increase in money supply; - investments.

The financial market consists of interconnected segments, each of which is a relatively independent market structure and element of the pricing mechanism (Fig. 11.1).

The national financial market consists of three relatively independent segments:

circulating cash and other short-term means of payment (bills, checks, etc.);
loan capital in the form of short-term and long-term loans provided to borrowers by financial and credit institutions; securities of various types and purposes;
the over-the-counter (primary) and exchange sectors, as well as the “street” sector.

The stock market unites most of the financial market, it is based on money as capital.

In general, the place of the stock market is shown in Fig. 11.2.

The stock market performs a number of functions, which can be divided into general market ones (usually inherent in each market) and specific ones (which distinguish this market from all others).

General market functions include:

commercial - making a profit from operations in a given market;
price - the formation of market prices, their constant movement;
informational - providing its participants with the necessary market information;
regulatory (creation of rules for trade and participation in it; resolution of disputes between participants, control and management).

Specific functions of the securities market include:

redistribution function, which in turn can be divided into three subfunctions:
- redistribution of funds between industries and areas of market activity;
- transfer of savings (primarily of the population) from unproductive to productive form;
- financing the state budget deficit on a non-inflationary basis, that is, without issuing additional funds into circulation;
the function of insuring price and financial risks (or hedging). This function became possible thanks to the emergence of a class of derivative securities: futures and options contracts.

The information function is very important for all stock market participants. The situation on the stock market provides investors with information about the economic situation and gives them guidelines for placing their capital. This information is presented in the market value of securities.

The components of the securities market are based not on one or another type of security, but on the method of trading on this market. From these positions the following are distinguished:

the primary market is the acquisition of securities by their first owners in accordance with certain rules and requirements;
the secondary market is the circulation of previously issued securities; the totality of all acts of purchase and sale or other forms of transfer of a security from one owner to another during the entire period of existence of the security;
organized market - circulation of securities on the basis of legislation established rules between licensed professional intermediaries - market participants on behalf of other market participants;
unorganized market - circulation of securities without observing rules uniform for all market participants;
stock market - trading of securities on stock exchanges.
Finance. Self-test. Module 2

It is always an organized market;
over-the-counter market - trading in securities without going through the stock exchange. Can be organized or disorganized;
Securities are traded on traditional and computerized markets. In the latter case, trading is carried out through computer networks that unite the relevant stock intermediaries into a single computerized market;
cash market (foreign name: “cash” market, or “spot” market) - a market with immediate execution of transactions within 1–2 business days;
derivatives market - a market on which transactions of various types are concluded with a execution period exceeding 2 business days (most often the execution period is 3 months).

Financial instruments of the stock market

The role of the (financial) stock market is to create conditions for additional support for business entities and bodies state power necessary financial resources through the purchase and sale of financial instruments.

A financial instrument is any contract through which there is a simultaneous increase in the financial assets of one enterprise and the financial obligations of a debt or equity nature of another.

There are primary financial instruments, represented by types of securities, and derivative financial instruments, represented by financial derivatives (derivatives).

Security - financial document certifying the property right or loan relationship of the owner of the document to the person who issued such a document (issuer).

In accordance with Civil Code securities are divided into bearer, order and registered.

A bearer security is a security the name of the owner of which is not recorded directly on it, and its circulation does not require any registration.

A registered security is a security the name of the owner of which is recorded on its letterhead and (or) in its register of owners.

An order security combines the features of both bearer and registered paper, that is, it records not only the name of the owner, but the owner can transfer the right of ownership of his order (warrant) to another person.

From the point of view of circulation, a bearer security has significant advantages over a registered one, since the process of transferring rights to capital occurs “instantly”.

From the point of view of security and transparency of transactions, registered securities have an advantage, since they make it possible to identify its owner and all transactions with it become available for taxation by the state.

Primary financial instruments:

shares - equity securities confirming the right of their owner to participate in management economic company, distribution of the latter’s profits and receipt of a share of property proportional to its contribution to the authorized capital;
bonds are securities that confirm the issuer’s obligation to compensate the owners for their nominal value within a certain period of time with payment fixed percentage, unless otherwise provided by the terms of the bond issue;
treasury bills - a type of government securities that are issued by the Ministry of Finance of the Russian Federation and are used as a means of payment for current debt federal budget to enterprises and industries;
bill - a monetary obligation of the debtor of a strictly established form, giving its owner the unconditional right, when the term comes, to demand from the debtor or acceptor payment of the amount specified in it (treasury - issued by government bodies; commercial - by companies in payment for goods and services);
check - a monetary document drawn up in the form prescribed by law, containing an order from the owner of the personal account who issued the check to pay the owner of the latter the amount of money indicated in it;
certificate of deposit - a written certificate of a credit institution (issuing bank) on the deposit of funds, certifying the right of the owner - a legal entity to receive the amount of the deposit and interest on it upon expiration of the established period;
bank savings certificate - a written certificate of a credit institution about the deposit of funds, certifying the right of the owner - an individual to receive the deposit amount and income after a specified period. The certificate can be issued for a certain period or on demand.

Secondary (derivative) financial instruments are financial derivatives; they arose as a result of the transformation of traditional financial relations associated with the acquisition of property rights and credit transactions.

Financial derivatives give the right to another instrument, they differ in that:

their existence is made dependent on the existence of the underlying asset;
their circulation depends on the underlying asset;
their price depends on the price of the underlying asset.

Derivative financial instruments:

hedging is a method of insurance (compensation) for possible losses from the occurrence of certain financial risks: insurance of the price of a product against the risk of a fall that is undesirable for the seller or an increase in price that is unfavorable for the buyer, by creating counter currency, commercial, credit and other claims and obligations;
forward contract - an agreement on the sale of goods or financial instruments with an obligation to deliver and settle in the future (in accordance with the contract, the seller is obliged to deliver a certain amount of goods or financial instruments at a certain place and time);
futures contract (futures) - a type of securities aimed at obtaining gains from price changes (in content it is tied to a specific month of execution and is freely traded on the stock market);
swap - an agreement between two entities regarding the exchange of obligations or assets in order to improve their structure, reduce risks and costs; the reason for creating this security is to simplify the settlement mechanism between the parties to a business transaction (during the transaction, the parties transfer to each other only the difference in interest rates from the agreed amount);
An option is one of the types of futures, however, unlike futures and forward contracts, options do not require the sale or purchase of the underlying asset. An option gives the right to execute a contract within a specified period, the subject can refuse the contract or sell the option to another person before the expiration of the contract;
REPO transactions (repurchase agreement) - an agreement to borrow securities against a certain guarantee of funds or funds against securities (sometimes called a securities repurchase agreement);
A warrant is the right to purchase shares of a company at a certain price in the future.

Each derivative financial instrument is unique in its own way, its use is designed to contribute to the achievement of certain goals for which it was invented.

State regulation of the financial market

Regulation of the securities market is the regulation of the activities of all its participants and transactions between them by organizations authorized by government authorities.

Securities market regulation covers:

all participants in financial transactions;
all types of activities;
all types of transactions in the financial market.

There are:

state regulation of the market carried out by government agencies;
regulation by professional market participants or market self-regulation;
public regulation or regulation through public opinion.

Goals of financial market regulation:

maintaining order in the market, creating normal working conditions for all market participants;
protection of market participants from dishonesty and fraud of individuals or organizations, from criminal organizations;
ensuring a free and open process for pricing securities based on supply and demand;
creating an efficient market in which there are always incentives for entrepreneurial activity and on which every risk is adequately rewarded;
in certain cases, creating new markets, supporting markets and market structures necessary for society, market initiatives and innovations;
influencing the market to achieve social goals.

The process of financial market regulation includes three stages (Fig. 11.3).

The main principles of regulation of securities market are:

separation of approaches in regulating relations between the issuer and the investor, on the one hand, and relations with the participation of professional market participants, on the other;
highlighting those securities that primarily require careful regulation (for example, investment securities);
ensuring competition between market participants;
ensuring transparency of rulemaking;
compliance with the principles of continuity of the Russian financial market regulation system and taking into account the experience of the world market.

Regulation of the financial market is carried out in the form of state regulation and self-regulation (Fig.

State regulation is carried out in the form of direct regulation and boils down to the following:

ideological and legislative functions (development of a concept for market development, programs for its implementation, management, formation of regulatory support);
concentration of resources (public and private) for the purpose of socio-economic development;
establishing rules for the functioning of the financial market (requirements for participants in operational and accounting standards);
control for financial stability and market security (registration and control of market entry, registration of securities, supervision of financial condition investment institutions, taking measures to improve their health, monitoring compliance with legal and ethical standards, applying sanctions);
creating a system of information on the state of the securities market and ensuring its openness for investors;
formation of a system for protecting investors from losses (including state or mixed investment insurance schemes);
preventing the negative impact on the stock market of other types of government regulation (monetary, currency, fiscal, tax).

The structure of government regulatory bodies for the financial market is:

supreme bodies of state power:
special financial regulation institutions:
- The Ministry of Finance of the Russian Federation registers the issue of securities of corporations, federal subjects and bodies local government, licenses stock exchanges, investment companies and funds, issues government securities and regulates their circulation;
- The Central Bank of the Russian Federation registers issues of securities of credit institutions, carries out operations and regulates the procedure for carrying out operations by credit institutions, establishes and controls antimonopoly requirements for operations;
- The Antimonopoly Committee establishes antimonopoly rules and monitors their implementation;
- The Department of Insurance Supervision regulates the activities of insurance companies in the financial market and the insurance of financial assets.

Indirect or economic management of the financial market is carried out through the taxation system, monetary policy, state capital, state property and resources.

Main directions of indirect regulation:

control over the money supply in circulation and the volume of loans provided by influencing interest rates;
changes in taxation and depreciation periods;
government guarantees (for deposits, private sector loans);
foreign economic policy (operations with foreign currency, gold, measures to stimulate exports, currency restrictions);
foreign policy activities - the development or curtailment of political contracts affecting foreign trade and economic relations, military actions.

Self-regulation, in the most general understanding, is the ability of a system to independently respond to the influence of the external environment.

The financial market self-regulation mechanism includes two aspects:

market self-regulation is the self-tuning of financial market processes under the influence of the law of value, the law of prices, supply and demand;
administrative self-regulation is a means of forming self-regulatory organizations.

Self-regulatory organizations are non-profit, non-governmental organizations created by professional participants in the financial market on a voluntary basis, with the aim of regulating certain aspects of the market on the basis of state guarantees of support, which is expressed in assigning them the state status of a self-regulatory organization.

Currently, self-regulatory market organizations are the organizers of the exchange and public associations of various groups of professional participants.

Professional participants in the financial market are legal entities, including credit organizations, individuals registered as entrepreneurs who carry out various types of activities, entering into certain economic relations regarding the circulation of financial assets.

These include:

organizers of the financial market (exchange);
professional intermediaries;
news agencies.

Species professional activity on the stock market are:

brokerage activities;
dealer activities;
securities management activities;
activities to determine mutual obligations (clearing);
activities related to maintaining the register of securities holders;
depository activities;
activities related to organizing securities trading.

A type of organizer of professional activity is the stock exchange. According to the current Russian legislation, the stock exchange organizes the purchase and sale of securities, its tasks are:

providing a place for the market, that is, a place where both the sale of securities to their first owners and their secondary resale can take place;
identification of the equilibrium exchange price;
accumulation of temporarily available funds and facilitating the transfer of property rights;
creating a mechanism for the smooth resolution of disputes;
providing guarantees for the execution of transactions concluded on the exchange floor. The function is achieved by the fact that the exchange guarantees the reliability of securities that have been listed.

Listing is a pre-sale verification of the quality and reliability of securities proposed for inclusion in the quotation list on the stock exchange.

The stock exchange has the right to set its own requirements for checking securities.

Self-regulation of the financial market is ultimately aimed at achieving a highly liquid market and involves the establishment of qualification and aesthetic standards for its participants, their responsibility to clients, the establishment of rules and the implementation of trading operations.

What they are, let's first look at their structure. One global financial includes such components as: national financial markets, international financial markets and eurocurrency and loan markets. These are a kind of sectors that form the global financial market itself. National financial markets are the primary sources of financial relations in general. With the birth of civilization, it was in statehood that development took place. Financial relations within the state are expressed through domestic investment transactions, as well as stock and secondary markets.

International financial markets are already an expression of interstate relations exclusively in all financial areas related to currencies, from ordinary loans to large investments. In fact, transnational financial markets are a kind of access of one state to the economy of another. Eurocurrency and deposit markets are such Eurocurrency markets. Today they are understood as those deposits attracted on the international financial market by commercial banks for which these currencies are foreign. These are, as it were, the main components of financial markets.

Now let's look at markets from a different perspective. These are their types. Modern financial markets can be divided into: money and capital markets. It is also worth highlighting the currency one. The money market is a sector of the financial sector in which financial instruments with a circulation period of less than one year act as goods. These are mainly government bills and bank certificates of deposit.
The foreign exchange market is a market in which goods such as: natural precious stones and precious metals are expressed in foreign exchange value.

The capital market is a type of financial market in which financial instruments with maturities of at least five years are traded. As a rule, these are long-term loans, shares, etc. In addition to these types of markets, it is worth highlighting the gold market. This is a market in which the purchase and sale of valuable precious metals is carried out in order to increase the state or use in industry. The stable state of modern markets depends on several factors.

These are economic, political and force majeure. Modern financial markets, having a strong relationship with each other, as well as influencing the economies of states and at the same time depending on political events, require vigilance on the part of market participants. And if, in addition to the influence of the economic factor on the markets, political and force majeure events occur, then in terms of settlement negative consequences economic factors are at a less complex level. So, if in some countries the government’s influence on the markets is minimal, then in other countries, for example, stock exchanges are state-owned.
Of course, it is sometimes difficult to overestimate the influence of political factors on modern financial markets, because very often in developed countries the government is involved in resolving crisis situations that have occurred in financial markets. Perhaps the most difficult factor influencing the manifestation of unpredictable developments in the state of financial markets are force majeure.

Modern financial markets are not able to react to an unexpected surge of events or to an unforeseen single event. It is usually impossible to predict. But if some event occurs that should not have happened, the reaction of the markets is, in principle, instantaneous. For example, a sharp drop in the value of a currency over a long period can cause a rapid imbalance not only in investment inflows but also in the export-import relations of any state, which leads to severe economic destabilization in the country.

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