In the light of recent events, the topic of financial markets is relevant. This is primarily due to the financial crisis, which has enslaved almost the entire world.
Specifically in Russia, the problem became urgent after the collapse in the government securities market, as well as unrest in the corporate market.
Today it has become necessary to conduct a preliminary assessment of market prospects and the macroeconomic situation in general.
Financial market Is a kind of generating device of countless indicators. From these indicators, one can add a picture that reflects the overall level of the economy and its state in the state today.
The main task of this type of activity is to study the theoretical aspects of the stock market. Analytical work will help to study the state of the two market sectors. You can also make forecasting and an objective assessment of the future prospects of the Russian market in cooperation with the global stock market. The forecast will be based on the conclusions of specialized analytical agencies and employees of the RF Ministry of Finance.

Essence, role and functions of the financial market

The market can be characterized by buyers and realtors who are independent in their own actions regarding interaction with each other. The buyers include individuals, different firms and intermediaries who are involved in the purchase of goods. This is done for the purpose of its further resale.
Thanks to the market, resources are rationally allocated. It fully affects the structure of production and the volume of manufactured products. Market competition heals the economy by eliminating uncompetitive firms that are unprofitable for the state.
Market competition also forces the consumer of a product to choose a rational consumer structure. The prices set and maintained in the market are considered as the carrier of economic information. All of the above determines the main role of the market in the state economy.
The financial market is a structured capital allocation mechanism. The distribution takes place between the lender and the borrower. Mediators help them in this. The whole operation is based on the presence of supply and demand for a given capital.
Various transactions with funds are performed on the financial market. These include services for the provision of credit funds and their mobilization. The leading role is played by financial institutions that direct capital flows to borrowers from owners.
As a commodity, you can see cash along with securities. Its purpose is to create business relationships between buyers and sellers of a financial resource.
The partnership between the financial market and government agencies is beneficial for both parties. Government organizations can be a borrower or a lender. It has the right to establish its own rules for the proper functioning of the market, exercising close control over it.
The state can officially implement the credit and financial policy in the market. The state of the national economy depends on the latter. It is advisable for the state to take measures to protect and encourage the development of the financial market. The specifics of cooperation between sellers and buyers of financial assets depends on the laws of economics established by the state.

The financial market in the course of its activities performs a number of functions:

Creates conditions for the constant rotation of money during payment transactions. This directly affects the money turnover by regulating its volumes.
Attracts additional investors, and also provides an opportunity to resell the financial asset that the market has. These two factors significantly increase the liquidity of the financial market.
Creates conditions for the movement of accumulations of free financial resources;
It mobilizes internal sources of finance accumulation and attracts new sources for financing.
It can carry out a quick redistribution of resources in different spheres and sectors of the state economy. In addition, the exchange can be between the country and the AO, the population and the state.
Carries out the redistribution of capital between the spheres of the economy and sectors of the economy.

The main tasks of the financial market

The financial market prioritizes supervisory and regulatory authorities. He resolves disputes that arise among market participants.
Creates norms and statutes of trade, as well as further participation in it. Management of the sectoral and territorial levels of the market economy is carried out. Depending on changes in the average sectoral rate of income, an inter-sectoral "transfusion" of funds is carried out.

The financial market also:

The flow of rates for financial assets is monitored and regulated. This is done by creating a balance between demand and supply between the consumer and the seller.
Various persons are motivated to be accomplices in the financial market. Potential partners are offered the rights and opportunities to manage companies, every chance to accumulate their own money capital, and so on.
Compliance with statutory norms is monitored.
A network of institutions for the sale of financial assets is being created.
Market participants make a profit from their transactions with assets.
Reduces risk when trading financial assets.
Engaged in bringing market news to the subjects of the economy.
Concentrates and centralizes money and production.

Structural components of the financial market

Depending on the subject of a trade transaction in the financial market, there are:
Money markets. The occupation of this market structure is the movement of short-term capital transactions. They have the highest degree of liquidity. The subject of bargaining is money, deposits and so on.
Credit Markets. The type of activity of the credit market consists in medium-term or long-term transactions, as well as investing in profitable assets.
Jewelry market. Economic transactions directly related to the rotation of expensive stones and metals.
Asset market. Business relations associated with the mobilization of funds through the manufacture of securities and their further turnover.
Currency market. It manifests itself during transactions for the sale and purchase of currencies of other countries or currency values.
The above types of markets are interconnected with each other. However, each of them has its own specifics of work and norms of transactions. According to the timing of financial transactions, the market is divided into capital and money. The main task of the first is to generate the highest income in the medium or long term.
The main purpose of money markets enables banks and commercial firms to manage the liquidity of their own assets. These institutions use different adjustment methods. They can place loans of funds or carry out sales and purchases of worthwhile securities.
The financial market exists only with the favorable functioning of the primary and secondary markets. The primary market deals with the distribution or redistribution of funds from the borrower and the lender. His competence includes the issuance of loans and the sale of securities. Responsibilities of the secondary market are the resale of valuable assets, uninterrupted functioning of the entire financial market.

What is the subject of financial markets?

Legal organizations, together with individuals, involved in the purchase and sale of financial assets, servicing them in circulation, and making settlements are called the subject of the financial market. They interact with each other economically with the aim of further circulation of financial assets.
Regulation of market activity at the state level is carried out by the President, the government, the Ministry of Finance, as well as their local authorities. The organizations that serve the market collectively form its infrastructure. Well-coordinated work of these organizations is the key to the successful operation of the entire financial market. Financial market participants include government regulatory and supervisory bodies, organizations that serve the market and organizations that independently regulate their own activities. They are conventionally divided into non-professionals and professionals.
Professional market participants include all legal entities that have been regulated as professional participants with licenses.
The main features of a well-developed financial market are:
Stable regulatory framework;
A wide range of participants;
Purity of information on transactions carried out by the market;
Honesty and decency of all market participants without exception;
Well-developed infrastructure of the above listed organizations.
If the market has the availability of all these points, then it is able to provide all of its participants with the rapid use of monetary resources.
The stock market is a very important component of the financial system. It helps to increase production efficiency and profitability. The market helps to stimulate the economy of the state and better share investments.
To develop the economy of an industry, the first step is to raise the market for valuable assets, using different management tools. This move allows us to step by step move away from the model of a debt economy. In turn, only the full return of the industries produced can give real results.

The role of the financial market in a market economy

At the macro level, there are three aggregate markets: the market for goods and services, the resource market and the financial market. Four sectors interact in these markets: entrepreneurs, households, the state and the foreign economic sector. The need for the first two macro markets is obvious: in the resource market, entrepreneurs acquire factors of production (land, labor and capital) in various forms (ownership, rent, hiring), produce goods and services, and then sell them on the commodity market. What caused the need for the financial market? This is due to the fact that the sectors of the economy, having received disposable income at their disposal, do not use the entire amount received for consumption, but use part of the money for savings. The availability of savings encourages entrepreneurs, the state, and participants in foreign economic activity to borrow these amounts for their own purposes. However, it is obvious that when any natural or legal person applies to another person with a request to lend a certain amount of money, then it is advisable for the borrower to provide the lender as collateral with some means of real value.

The financial market, basically, serves so that with its help the business sector, the state and participants in foreign economic activity can receive borrowed funds.

The securities market is an integral part of the financial market and exists to provide transactions for the sale and purchase of securities. It allows you to accelerate the transition of capital from monetary to productive form. In the securities market, there is a redistribution of capital between sectors and spheres of the economy, between territories and countries, between different segments of the population.

A developed domestic financial market could significantly facilitate the task of integrating into the global financial market and create a channel for foreign capital investment in our economy through the placement of our securities.

Establishing a large-scale market for traded securities is a complex and time-consuming process. Mass circulation of shares should be preceded by the massive creation of joint-stock enterprises, which in our conditions should be preceded by denationalization and privatization of enterprises. This process is going on with great difficulty.

There is another characteristic feature that distinguishes the Russian market - the lack of statistical data on its state over a long period, and it is these data that become the basis for modeling.

Currently, the most important regulatory document governing the activities of the Russian financial market is the Law "On the Securities Market", adopted in 1996. In accordance with this law, all activities in the securities market are licensed.

The Russian financial market is dominated by government securities, which occupy about 80% of the market. The emergence and development of government securities is associated with the problems of budget deficits at various levels. The government has made several attempts to attract investors to finance the budget deficit. The most successful were the securities traded among legal entities.

Among government securities, the first place is steadily occupied by State short-term bonds (GKO) and Federal loan bonds with a variable coupon (OFZ-PK).

A feature of the Russian market is the high yield on government securities. Gradually, with the growth of confidence in these securities and a change in trends in other segments of the financial market, in particular the foreign exchange market, the state was able to borrow money at a lower level of profitability.

Recently, an increasingly significant role is played by municipal securities issued by the constituent entities of the Russian Federation. They represent a growing and very interesting part of the financial market.

The government securities market is a centralized exchange market. The center is the Moscow Interbank Currency Exchange.

The Russian corporate securities market has gone through several stages in its development. 1990-1992 prerequisites for its development were created. 1993 - 1994 passed the "stage of privatization checks." In the second half of 1994, the circulation of shares of joint-stock companies began, the gradual formation of the market for large investors and intermediaries.

The Russian financial market mainly used the legal potential of Russian investors - legal entities. In many ways, its functioning is currently associated with the inflow of foreign capital. This is reflected in the admission of non-residents to government securities and in the entry of Russian corporate securities to foreign markets through the mechanism of depositary receipts.

Great opportunities for the Russian financial market could open up by attracting funds from the population stored in cash. But the Russian population is the most distrustful investor, besides having negative experience in the form of securities like MMM.

The financial markets in developed countries rely on the vast savings of individuals. The general poverty of our population and the lack of free savings are an objective obstacle to the development of a broad financial market. The population is not psychologically prepared for the perception of investing their funds in debt obligations of new organizations unknown to them.

Market functioning requires the emergence of confidence in the ability to entrust your savings to intermediary institutions. This public trust should be nurtured gradually by positive examples. In a short time, a huge number of securities appeared on the Russian market: shares of privatized state enterprises and newly emerged joint-stock companies, privatization checks, promissory notes and government bonds. A number of regulations have been adopted to regulate the issue and circulation of securities, as well as the rules of conduct for market participants.

According to economic theory, the entire commodity world is divided into goods and money. Goods are understood as material goods and services. The concept of money includes money itself and capital, that is, money that brings new money.

There are two main ways of transferring money - through the lending process and through the issuance and circulation of securities.

Currently in Russia there is a certain number of legislative acts that regulate the financial market, but they are not enough. This situation is largely generated by the dynamic development of this market and the lagging behind it of legislative activity. Along with this, one can note such a negative moment as insufficient legal protection of citizens when they perform various operations on the securities market.

Russian legislation does not establish adequate measures of administrative and criminal liability for violations in the financial market. There are practically no measures against the use of insider information and insider trading, as a result of which it is impossible not only to identify an offense, but also to qualify it as such. The concept of manipulation is not clearly defined: it concerns only the securities market. At the same time, the prohibition of market manipulation is established only for professional market participants, which significantly narrows the circle of persons who could potentially be subjects of such violations. The same is largely true of the foreign exchange market.

Let us repeat that an important condition for ensuring the stability of the financial market is its effective regulation, primarily by the state. It is it that should ensure fairness, transparency of the market, reduce systemic risk and protect the interests of investors (depositors), setting requirements for the activities of financial institutions and sanctions for their violation.

This is especially important due to the fact that the population has significant resources necessary for the effective implementation of investment processes in the real economy of Russia.

The population is more or less aware of such banking sector products as deposits. Other financial products (products of collective investment institutions, pension and insurance products) are practically unknown to the population, which was clearly manifested in the course of the implementation of the pension reform. According to some estimates, only 10-15 thousand citizens (less than 0.1% of the Russian population) are active participants in the Russian stock market. For comparison: in South Korea the share of investors in securities in the total population is 8.3%, in Japan - 26.6%, in Australia - 36.5%. In the United States, only 48.2% of families own shares.

The lack of a culture of savings is evidenced by surveys of the middle class. 66% of the total number of respondents make deposits in banks, in foreign currency - 46%, in real estate - 34%, in land plots - 23%. The share of citizens investing in entrepreneurial assets is noticeably smaller: 4.8% of respondents made investments in their own enterprise; in shares of those enterprises where they work - 5.3%, in shares of other enterprises - 5%, in financial companies and mutual funds - 3.2%. But it is these assets that serve as the basis for long-term investments.

Marenkov N. L. Russian securities market and exchange business - M .: Editorial URSS, 2000-p. 7.

World economy and international relations, item 3, 2004.

The financial market is a set of mechanisms that redistribute capital between lenders and borrowers with the help of intermediaries as part of the formation of demand and supply for capital. In practice, the financial market is a group of financial and credit institutions. They direct the flow of funds from owners to borrowers and vice versa, while making a cycle of funds.

The financial market is the aggregate of the country's monetary resources, namely, resources that are in continuous movement. They are influenced by supply and demand, as well as by various economic actors. Monetary resources and business entities are not a financial market. The market itself is formed only with the emergence of relationships between monetary resources and economic entities. The financial market is money relations, which are characterized by the movement and redistribution of free money capital and savings between economic entities through the conclusion of transactions. The main functions of the financial market are (Fig. 1):

Figure 1. Functions of the financial market

• Regulatory. It involves the coordination of the market both on the part of government authorities and on the part of self-governing organizations;
• Informational. It implies providing equal and full access to the necessary information for all participants in the financial market;
• Distribution. Provides an overflow of funds from one sphere of the economy to another, from one market participant to another, from one branch of circulation to another. Thus, it facilitates the allocation of financial resources;
• A commercial. Provides income to all participants in the transaction, which they can receive as a result of operations carried out in the financial market;
• Pricing. It says that the price of financial instruments is formed in the market under the influence of supply and demand and only in conditions of free competition.

The main role of the financial market in macro and microeconomics is the fulfillment of various economic tasks and functions, such as:

1. Transferring savings into investments. By acting as a linkage mechanism between them, the market promotes economic growth as growth is fueled by investment.
2. Financing of large projects. In the financial market, capital is being mobilized and concentrated, it is being transferred from a “dormant” unproductive form to a format of readiness for effective use. Funds mobilized in large cash pools serve as sources of financing for large projects.
3. Improving public efficiency. The financial market does not create resources, but effectively redistributes them to promising sectors, thereby contributing to economic development. Market trait as a guarantor of efficiency. It is in the financial market that social optimality is ensured: as a result of the actions of many agents, there is an overflow of capital into industries and spheres with their best use.
4. Taking advantage of the main advantages of financial assets. The role of the market is determined mainly by the monetary form of financial assets. Its task lies in the fact that it provides greater mobility, the mobility of the use of money capital in comparison with its movement in a commodity and productive form.
5. Creating more choice for those who consume financial assets. The financial market makes it easier to choose different ways to increase income, as well as between current and deferred consumption. From the standpoint of macroeconomics, competition in the financial market is a favorable trend in the distribution of income.
6. The financial market is a mechanism for aggregating information, processing it, collecting and translating it into market prices.
7. Management of risks. Risks are hedged in the financial market, as well as their further transfer to financial intermediaries. This significantly reduces the level of risk in business, and makes it possible for economic entities to more responsibly and freely finance venture and innovative projects. The paradox is that the reduction of risks by financial markets leads to the generation of new special risks.
8. Impact on the management of enterprises and corporations. The productive role of the financial market, in terms of corporate strategy, is an important role for the financial market. Receiving the necessary funds in the financial market, in addition to internal resources, the company has great chances to properly build effective management of financial resources. This is done with the aim of maximizing profits and increasing its market value. At the same time, the financial market absorbs the surplus of capital from other enterprises.
9. The financial market is important for conducting public finance transactions. Management of budget shortfalls occurs when government securities are issued. Their emission and circulation are carried out on the stock market in a certain segment.

Thus, in modern society, the importance of financial market institutions and financial intermediation is significantly increasing. The main role of the market is to transfer free resources from the owners of free money to their users: borrowers and investors. The financial market promotes economic development and increases its efficiency by redistributing resources to promising sectors and spheres. Another macroeconomic role of the financial market is to reduce the costs of social capital by specializing in certain types of financial transactions, reducing risks, as well as aggregating information, processing it, collecting and transforming it into market prices.

Summing up, we can say that the main purpose of the financial market is to promote economic development.

Consequently, the financial market is presented as an effective mechanism for the functioning of the economy, an instrument for saving the population, mobilizing financial resources and rational redistribution of funds.

Bibliography:

1. Khazin, M. Financial markets: news and trends / M. Khazin, O. Grigoriev // Consultant. - 2012. - No. 4. - S. 16-20.
2. Bakanaev I. L., Tsokaeva L. A., Movtigova M. A. The role of the financial market in the development of the Russian Federation // Young scientist. - 2016. - No. 3. - S. 457-459.
3. Shiryaev, V.I. Models of financial markets. Optimal portfolios, financial and risk management. Textbook / V.I. Shiryaev. - M .: Librokom, 2015 .-- 216 s
4. A.V. Koroleva, E.A. Chubarova, O.V. Stepnova Concept and essence of financial innovations // Problems of economic sciences. 2017. No. 4 (86). S. 43-46.

Financial market models and their features

Financial market structure

The essence of the financial market and its role in the economy

Financial market and its importance in economic development (2 hours)

The effective functioning of the economy of any state in modern conditions is impossible without a developed financial market.

Financial market- a rather complex and multifaceted economic category associated with various processes taking place in the economy. This predetermines the ambiguity of opinions about the essence, structure and functions of the financial market.

In economic literature financial market v broad sense characterized as an organizationally formalized economic space where the sale and purchase of financial resources, instruments and services is carried out. V narrow sense the financial market is defined as a set of economic relations that ensure the mobilization and redistribution of temporarily free funds, financial resources, the circulation of securities between market entities.

The economic basis of the financial market is made up of various forms of capital (monetary, loan, fictitious), interconnected. Money capital, this is the capital of the real sector of the economy (industries, services and trade), which is used in the form of production assets that create income in monetary form (in other words, money capital). The surplus of money capital accumulates and can be lent (loan), i.e. money capital is transformed into loan capital. The loan capital market is formed by special financial and credit institutions. O fictitious capital we can say when investors acquire various securities that have their own value and the ability to buy and sell, thereby fictitious increasing or decreasing the investor's capital.

Each form of capital has a different functional purpose and influences the formation of the structure of the financial market. The financial market provides the movement of securities, credit resources and monetary funds that act objects of relations in this market. Subjects of relations are the state, enterprises (organizations) of various forms of ownership, individual citizens.

The financial market plays an important role not only in the reproduction process, ensuring the free movement of funds of enterprises (organizations), but also in the organization of public finances. The financial market is seeking funds to cover the budget deficit in a non-inflationary way.

Thus, the financial market accumulates temporarily free capital from a variety of sources, efficiently distributes it between numerous consumers, directs to the most effective areas, accelerates capital turnover and contributes to economic development.

Depending on the volume and nature of transactions, financial markets can be divided into national, regional and international.

National financial markets ensure the movement of cash flows within the country and the relationship with world financial centers. The subjects of the national economy conduct transactions in these markets.

Regional financial markets serve a specific area. The countries of this region coordinate monetary and credit policy, create regional financial and monetary organizations.

International financial markets serve the intercountry movement of capital, implementing a system of financial, currency and credit relations between individual states, corporations of different countries, residents and non-residents. The world financial centers were formed, where the largest exchanges and banks, specialized credit and financial institutions were concentrated.

Main functions financial market are:

Active mobilization of temporarily free capital from various sources.

Determination of the most effective areas for the use of capital in the investment field. A specific pricing system for various financial market instruments identifies the most effective areas and directions of investment flows, ensuring a high level of return on capital used;

Effective redistribution of the accumulated free capital between its numerous consumers.

Acceleration of capital turnover, contributing to the activation of economic processes, the formation of a rational structure of the economy.

Formation of market prices for financial assets and services that most objectively reflect the emerging ratio of supply and demand for them;

Implementation of qualified mediation between buyers and sellers of financial assets through special financial institutions, which helps to accelerate cash and commodity flows, reduce social costs;

Creation of conditions for financial market participants to reduce various types of risks. The financial market has its own instruments and mechanisms to protect against unfavorable changes in market conditions, investment risks, technical and other types of risk.

Financial market participants functional characteristics can be subdivided into groups.

1. Major contributors- sellers and buyers of financial assets (currency values, credit resources, securities). The sellers in the financial market are lenders, issuers of securities and sellers of currency, while buyers are borrowers (borrowers), investors and buyers of currency.

2. Financial intermediaries... This group is represented by various financial, credit and investment institutions, the main of which are banks, investment companies and funds, trust companies, investment dealers and brokers.

Financial intermediaries, being professional participants in the financial market, bring buyers and sellers of financial assets together, thereby facilitating access to it for non-professional investors. In this case, one can single out brokers - intermediaries who carry out transactions at the expense and on behalf of the client, charging a commission, the amount of which, as a rule, depends on the amount and efficiency of the transaction, as well as dealers - intermediaries who carry out transactions at their own expense and on their own behalf and profit from the difference in the sale and purchase prices of financial assets.

3. Organizations serving the financial market. They are represented by numerous subjects of its infrastructure: stock and currency exchanges, settlement and clearing organizations, consulting firms, rating agencies, etc. All these organizations are not directly involved in investing, transactions with financial assets, but influence it by creating conditions for the effective operation of other financial market participants, providing settlement services, storing securities, collecting, analyzing and disseminating information.

4. State regulatory and self-regulatory bodies in the financial market. Since the development of the financial market is one of the directions of the financial and monetary policy of the state, the state regulates and controls the activities of entities in the financial market, contributes to the creation of the necessary regulatory and legal framework, a system of information about the state of the market and ensures its openness for participants, monitors stability and security of the financial market, etc. In addition, the state acts as a major participant in the financial market, using various financial instruments for monetary regulation.

Currently, the main regulation and supervision in the Belarusian financial market is carried out by the National Bank and the Ministry of Finance of the Republic of Belarus.

After reading this chapter, you will learn:

• ? what is the financial market and what segments it consists of;
• ? what role does the financial market play in the modern economy;
• ? how the main models of financial markets work.

Capital has only one life aspiration - the desire to grow.

Karl Marx

Financial market as a mechanism for capital outflow

The main issue in the modern economy is the issue of increasing the efficiency (profitability) of the business. One of the most important factors of such an increase is the attraction of cheap resources (capital) on the one hand and effective placement (investment) on the other. The mechanism that allows this function to be performed is the financial market, which influences the volume and structure of production, frees the economy from unprofitable uncompetitive enterprises, forces the consumer to choose a rational consumption structure, promotes technological innovations, ensuring the acceleration of economic development, carries out an effective selection of investment projects, etc. .d.

The most effective areas for the application of financial resources are determined through the mechanism of the financial market. In the financial market, money acts as a specific commodity and in this capacity is circulated in the markets: credit, stock (securities), foreign exchange, money, insurance and pension savings, precious metals, financial derivatives, etc. The composition of financial markets is still a subject of discussion specialists.

One of the leading researchers of the Russian financial market Ya.M. Mirkin gives such a definition of the financial market.

Financial market- a market in which there is a redistribution of temporarily free money resources through financial intermediaries based on the use of financial instruments (Fig. 1.1) and the provision of financial services, combined in the form of financial products that are a commodity on the financial market.

The role of the financial market in the economy is great; without it, it is impossible to accumulate large capital on the one hand and invest it in large projects on the other. Through the mechanisms of competition of a large number of buyers and sellers in the market, a single price for financial assets is formed and information transparency is achieved. Due to the large volume of transactions in specialized intermediary structures, the costs of circulation of money and other assets are reduced, risks are insured and the liquidity of traded instruments is ensured.

The role of the financial market is manifested in its functions. The main function of the financial market is to ensure the flow of funds from participants, for whom they are currently free, to participants in need of financial resources.

For example, Robert Merton, 1997 Nobel laureate in economics, points to such functions of the financial market as:

• ? temporary, cross-sectoral and cross-country redistribution of economic resources (capital);
• ? pooling of resources (concentration of capital) and the allocation of shares in the enterprise;
• ? payment and settlement;
• ? Management of risks;
• ? informational (providing information on prices).
• ? overcoming or mitigating the problems associated with information asymmetry.

Rice. 1.1.

• Mirkin Ya. M., Mirkin V. Ya. The English-Russian Explanatory Dictionary of Financial Markets. M .: Alpina Publisher, 2008.
• Information asymmetry is an uneven distribution of information about a market product between market participants. For example, CEOs of companies learn about business problems earlier than other market participants, that is, they have insider information that they can use to make a profit. And other market participants learn about the company's activities only through the mass media. The result is asymmetry. The theory of market efficiency is based on the idea of ​​information asymmetry.