Stock market securities 3
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The mechanisms of the stock market
In the world there are countries in which the role of the second-level control system, ie, non-governmental organizations, is fundamental to this, for example, include the United Kingdom and Germany. In Russia, at the moment there is the domination of the state's role in the control and management of the activities and mechanisms of the stock market.
Revived after the collapse of the administrative system, the domestic stock market has only two decades of its existence, so a developing site has not yet been formed properly regulate the rules and mechanisms of work and, therefore, be based on a strong state management body is essential in the current environment.
The control system of the Russian stock market has developed in two phases. A characteristic feature of the first phase, which began in 1992, was the fact that the main function of the state regulatory body fulfilled the Ministry of Finance, which was supposed to provide at the time certification, licensing and regulatory management of the major investment and financial institutions.
Parallel to this, the Presidential Commission was established by the country's stock markets and securities, providing advice and guidance.
Transition to the second stage was marked by the transfer in 1996, the Federal Commission for the Securities Market (FCSM) major powers to conduct public events in the financial markets.
The powers of the Federal Securities Commission is currently laid down in the Federal Law on the Securities Market, pursuant to which it performs the following functions:
1. Accepts and develops standards activities of the stock markets.
2. Applies sanctions against companies that violate the rules work.
3. Approve the rules and standards of activity in the stock market institutional investors, including the NPF, insurance companies and invest. Funds.
4. Provides licensing SRO (self-regulatory organizations) and issue the general
permits to operate in the financial markets.
5. Generates the basic concepts and the development of the stock market in the country.
6. Regulates and controls the licensing of professional participants market.
7. Adjust the volume of the order and the issue of securities.
At this time in the country's legal framework clearly stated the concept of SRO, but so far, these organizations have not yet been properly developed, so that the system of regulation of stock markets is almost entirely state.
Most likely, in the near future there will be a strengthening of the role of SROs in the area of financial markets, and we are in this area will gradually move towards the UK, which, in the end, and I would like to see.
The basis of any of the stock market up, the participants (market participants) that, for the purpose of personal benefit, carry out operations of purchase / sale of securities, providing their turnover and calculations on them. The composition of market participants is a reflection of the overall development of the country's financial market, the state of its banking sector and manufacturing. An important indicator, and also acts as the volume of money savings in all segments of the population of the country.
Thus, depending on the type of activity undertaken by market participants can be divided into three categories:
1) Issuers. This category of participants may be the state, represented by the authorized bodies and entities or persons involved for their own use they need funds through the issuance of securities. In this case they are stipulated regulatory obligations regarding the securities issued by them;
2) The investors of the stock market. This group of participants are primarily natural and legal persons who purchase securities in the property.
It is worth noting that at the same time with the purchase of the securities transferred to the investor and property rights certified by these securities. You can also include representatives of the investors and in a category of non-professional stock market participants;
3) professional stock market participants - legal and natural persons engaged in professional activities (dealer, broker, trader, etc.) on the stock market.
Stock Market Entities
Further, depending on the attitude of the participants in the stock market, all subjects can be divided into three types. "Users", "mediators" and "operators"
The first group, "members" of the stock market, are mainly issuers and investors, ie Participants, whose professional interests are not touching the stock market.
Issuers turn to the market if necessary to draw any amounts of capital, investors also attracted a profit by investing in securities. It combines the "users" that the stock market for them is not a profession, but a means of profit.
Traders of the stock market: brokers, dealers
The second group consists of professional traders (traders of the stock market) and stock brokers (brokers and stock market dealers), it is legal, and often individuals whose professional activity is trading in securities. The main work of them is to provide its customers (issuers and investors) services to enter the stock market. In particular, the broker performs operations with securities on behalf of customers and on their account (eg, brokerage services in the stock market), the dealer operates on his own behalf at its own expense, and then based on them into transactions with customers, well, and the trader operates customer funds on the market on his own behalf.
Commercial banks activity on the stock market
Often in the role of intermediaries in the stock market are the various types of commercial banks. The basic activity of banks on the stock market is to provide prietom warranties in the purchase / sale of securities transactions on the part of their clients.
The infrastructure of the stock market
The third group is called the infrastructure of the stock market, since it includes organizations specializing in the provision of services for all market users. Such organizations include the stock exchanges and other trading organizers, depositories and registrars, clearing and settlement organization.
Thus, the stock market is an interconnected system of participants of financial activity, the functioning of which is made possible only through a clear definition of the goals, objectives and functions of each of its elements.
International stock market
World stock market is a supranational structure consisting of a plurality of stock markets in different countries, at the same time, if the participants in the national financial markets operations are natural and legal persons of a country, then the international stock market as the subjects themselves are the country as a whole. This aspect plays an important role, since the operations conducted between borrowers and lenders from different countries, imply the conversion of financial resources from one country's currency in the currency of another. This mixture of national and international capital leads to the formation of the global generic market, to which all participants have access to the global economy, regardless of the territorial jurisdiction.
Formation of the stock market
Formation of the global stock market was made possible by the communications revolution and the improvement of technical infrastructure, so that took a huge capital-intensive investment projects and, consequently, powerful sources of their financing.
Possible to identify a number of factors that contribute to the formation of the world market and the expansion of its borders at the expense of stock markets around the world. These factors include:
1) a gradual merging of national and foreign activities in the sectors of the economy;
2) removing state constraints on the free migration of financial, capital and labor flows;
3) improvement of trading and settlement systems, the increased importance of international stock exchanges;
4) the development of electronic interbank infrastructure.
The structure of the stock market
The structure of the world market is the interconnection of financial institutions providing capital migration in the sector of the world's economic institutions. In the role of such institutions, mainly the multinational corporations, international stock exchanges, government agencies and various financial intermediaries.
The entire volume of operations on can be divided into 2 types of the global market: commercial - is the payment of export and import transactions, and financial, which are connected with the movement of capital between the sectors of the economy. At the same time the tools of national financial markets are also tools and world market.
Russia, as well as countries in Eastern Europe, before the beginning of the 90s of the last century was in some isolation from the processes of formation of the global financial market, but the changes that have occurred in recent years, largely contribute to overcoming exclusion. At the moment, there is an active process involving the Russian stock market in the international system of foreign stock markets.
The yield on the stock market
Today - it is not sky-high dream. Due to the rapid development of hardware, the Internet, it has become much easier than it was, say, 5 years ago. All you need - a computer with a modem and a small amount of money, enough to buy a lot of the initial shares of the cheapest as well as payment of all fees. Theoretically, you can run out and 200 rubles, but brokers often provide a certain minimum amount of money, enough to open a brokerage account.
Earn in the stock market
Perhaps all private investors-beginners tormented one burning question: how to make money in the stock market and more?
In fact, there are several tactics that can help you earn money in the stock market.
First, you can invest in mutual funds. The latter, in turn, buy advantageous from their point of action, they are held in the portfolio as long until it is optimal from the point of view of mutual fund moment. Usually it is not in mutual fund for more than 10 percent of the total. Such a percentage distribution of the shares in the portfolio is designed to ensure the safety of investors. Thus, only if the stock market collapses by 90% (that is, in principle, impossible), you lose the invested shares.
The second opportunity to make money on the stock market - it's just to play it. The risks of this, of course, increased. However, the probability of profit is also much more. You can earn up to a 1000% per annum, and to lose 9/10 of their money.
Players on the stock market, in addition to its own funds, often use so-called "leverage." This means that the player can borrow money from a broker, putting their shares. For the money the player can buy additional shares. As a result, if the prices are going up - the prize is doubled. Accordingly, doubles and losses when prices fall.
A similar scheme operates in the case of so-called "shorts" when instead of money the broker loaned shares, which are then sold on the stock exchange. Making a profit is also directly dependent on the growth or fall in stock prices.
When you select one of the two methods described above, it is understood that the more profitable and fastest way of making money - direct play on the stock market - brings with it great risks, requires you to anticipate the skills stock prices, the dynamics of the market as a whole. Such market dynamics are generally determined in two ways
- Fundamental and technical analysis. In technical analysis, based on a study stock charts, it takes into account the dynamics of past stock prices, while at basic - a scientific analysis - vraschet undertake financial performance of companies. However, such an analysis does not guarantee one hundred percent success. According to scientists, the probability of guessing equals one to three. Thus, often even professionals can not predict changes in the market. But as they say, nothing ventured - nothing gained.
Of course, if it's your last and you need very the money, it is better not to spend it to buy shares directly on the stock exchange and invest in a mutual fund. Protection money тhis case will be much higher.
Also, if you decide to make the stock market, then pay special attention to so-called "blue chips" - shares of leading companies, which have long and stable
listed on the stock market. In the Russian market, for example, the "blue chips" - are shares oil, gas companies, shares of leading banks and telecoms and energy companies. "Blue chips" are advantageous due to their liquidity, ie when market conditions deteriorating investor will be easier to implement actions
these companies and then concentrate on other financial market sector.
When you try to make money on the stock market also remember the main rule of the investor - "do not keep all your eggs one basket." Indiscretion on your part, will buy shares the full amount of their savings. Part of the money is wiser to invest in mutual funds or buy them on government bonds. About 30-40% of the money can be invested directly in equities. Thus it is better to invest in shares of various companies in different sectors of the economy. You can use the same tactics that use mutual funds: select a few promising, in your opinion, industries and companies to buy shares in these companies (for the "blue chips" is It can be up to 25% of shares for shares of other companies - from 5 to 10%). By doing so, you can protect yourself from undue risks associated with the crisis like a particular industry and a particular company.
US stock market - the biggest in the world in terms of market capitalization of the securities (including stock trading and turnover), and this position is maintained throughout the period after the Second World War, except for the period 1989-1990. The leading position of the US stock market, as well as its high degree of liquidity caused primarily by the fact that a significant portion of the capital market is in the financial assets of the population. Thus, the US stock market finds itself in the presence of a highly dispersed, atomized ownership structure. This is supported by the fact that the shares in the country, one way or another, has about 91 million people, ie almost a third of the population.
In terms of subject structure in the US stock market form the basis of the professional participants in the face of the plurality of broker and dealer firms, and portfolio managers.
The latter, incidentally, can be the same broker and dealer organizations, however, often are independent legal entities and individuals.
According to historical peculiarities, commercial banks do not perform transactions of purchase / sale in the sector of corporate securities and do not provide their emissions, as adopted in 1933. The law states-Steagall Act simply prohibits them from engaging in such activities on stock market (the ban dates back to the times of the Great Depression). Although in 1999, with the adoption of the Law of the Graham-Leach-Bliley for financial modernization, the ban was partially lifted, but still, the banks can not openly engage in activities in the securities markets. In this regard, it is worth noting that in recent years there is a tendency to the fact that large investment banks are beginning to register in the structure affiliated broker-dealer companies, thereby becoming sufficiently large players in the field placement of securities.
Almost all the intermediaries of the stock market (including brokers and dealers) are members of the Public Union - National Association of Securities Dealers (the NASD) - plays an important role of non-state market regulator. NASD has extensive powers:
monitors compliance with business standards, ethics develop the stock market, imposes fines on violators, carries out attestation of employees of broker-dealer firms, as well as grant or withdraws such certificates.
in the US The main state market regulator acts with the Securities and Exchange Commission (SEC), the Commission, which was organized in 1934. According to its basic functions and structure
This control is very similar to the Russian Federal Service for Financial Markets, however, has a somewhat wider powers. In particular, the Commission has the right to initiate legal proceedings and conduct their own investigation with the calling of witnesses in respect of professional stock market participants. It should be clarified that the SEC powers apply only to professional participants of the stock market: brokers, dealers, stock exchanges, registrars, depositories and investment advisers, but because Banks in the US are not, they do not fall within the field of activity regulator (possibly only as issuers).
On the part of the banking system in the United States are as much as three controller: Fed (FRS), the Control Service of the monetary circulation (a division of the Ministry of Finance) and the Federal Deposit Insurance Corporation (FDIC). Regulation as pension and insurance companies It is under the jurisdiction of special agencies states.
Each regulator is self-contained and performs a narrow circle of his duties, which generally creates a very strict regulation and development of the financial system. US, thus positioning themselves outside the process of formation of a global regulator of the markets in the last decade is actively unfolding in the world financial system.
With the onset of the financial and economic crisis, we all began to hear the phrase often "The stock market", terms and exchange market information is so firmly established in the media that even now far from the Finance people have begun to understand that such blue chips of the Russian stock market, and why their fall caused a halt of trading platforms.