The concepts of the stock market and securities coincide. By definition, a commodity traded in this market are securities that, in turn, determine the composition of the market, its location and the functioning rules of regulation.It should be noted that almost all markets instruments are reflected in the securities market. For example, the market once again produced the products and services presented bills of lading, commodity futures and options, commercial bills, the market of land and natural resources - mortgage bonds, stocks, bonds, are secured by land resources. In a market economy, the stock market is the main mechanism of redistribution of money savings. Stock market creates a free market mechanism, albeit controlled, overflow of capital in the most efficient farming industry. Any stock market consists of the following components: market actors; exchange, OTC stock markets, regulatory agencies and oversight; self-regulatory organizations; Market Infrastructure: a) legal, b) information, c) the depository and clearing and settlement network, d ) registration network.
Of the securities market are:
issuers - the state represented by authorized bodies, legal entities and citizens, based on attracting the securities issue they need cash and operating on its behalf provided in securities obligation;
investors (or their representatives are not professional securities market participants ) - citizens or legal persons acquiring securities in the property, complete economic management or operational management to implement these securities certified property rights (population, industry, institutional investors - investment funds, insurance companies, etc.);
professional participants of the securities market - legal entities and citizens, carrying out activities , a recognized professional in the securities market (dealer, brokerage and other activities ).
There are three models of the stock market depending on the bank or nonbank financial intermediaries:
Non-banking model (USA) - act as intermediaries nonbank securities companies.
Banking model (Germany) - brokers by banks.
Mixed model (Japan) - intermediaries are both banks and non-banking companies.
Types of stock markets.
Any stock market is divided into primary and secondary.
Primary market combines design phase of the new issue of securities and their initial placement .
Secondary market - a market in which the treated previously issued in the primary market securities. In turn, the secondary stock market is divided into organized and unorganized markets. In addition, stock markets can be classified according to different criteria: the territorial principle ( international, national and regional markets), by type of securities (stock market , etc.), by type of transaction (cash market, forward market, etc.) by issuers (securities market companies, government securities market, etc.), maturity (market short-, medium - , long-term and perpetual securities) on the sectoral and other criteria.
Securities are commodities that are traded on the stock market. Therefore, before turning to the features of construction and operation of the stock market, it is necessary to consider that includes the concept of a security and what documents may contact the securities market. So securities - are the rights to resources that meet the following requirements: uptake, accessibility for civil turnover, Standard and seriality, documentation, regulation and recognition by the state, market and liquidity risk.
In world practice, there are different approaches to the definition of securities: different lists of securities that are included in this concept, different approaches to the content of economic relations, which express the securities etc. Securities - a monetary document certifying the right of property, or the ratio of the loan document holder in relation to the person that issued the document. Securities may be in the form of separate documents or records in the accounts. Consider the types of securities used in practice and their brief definitions .
Shares of joint stock companies - any securities certifying the right of the owner to share in equity joint-stock company, to receive income from its activities and, as a rule, to participate in the management of this company.
Bonds ( companies, etc.) - any securities certifying the relationship between their own loan ( creditor ) and the person who has issued the document ( the debtor ). Government debt - any securities certifying loan relationship in which the debtor is the state, public authorities or management.
Derivative securities - any securities certifying the right of the owner to buy or sell stocks, bonds, and government debt ( financial futures, warrants, etc.) including - stock options ( bonds) - the right to buy shares on preferential terms .
Stock certificates - securities which evidence ownership entity named in it a certain number of shares.
Bill - drawn up by the statutory form of an unconditional written financial obligation debt issued by one party ( the drawer ) to another party ( the note holder ). Including - Commercial paper - short-term promissory notes issued to raise funds in the short-term turnover of the issuer.
Company shares - securities certifying depositing of funds for development of the enterprise, not giving the right to participate in management of the company, expects to pay a dividend to its owner.
Shares of the workforce - securities certifying depositing of funds members of the personnel for the development of businesses that do not give the right to participate in management of the company, expects to pay a dividend to its owner. Certificates of deposit banks - the documents on which the right to claim may assign one person to another, is the obligation of the bank to pay his outstanding deposits.
Savings certificates, bank documents, a claim on which may assign one person to another, which are the obligation of the bank to pay his outstanding savings deposits .
Checks - unconditional written order of the drawer bank ( drawee ) to pay the check holder specified on the check sum of money.
Commodity futures or option contract - has content similar derivative securities in that the object of the transaction is the delivery of a standardized shipment of goods of a certain quality.
Currency option or futures - has content similar derivative securities in that the object of the transaction is the supply of currency values.
Other securities - other financial instruments.