Raising capital is the main task of stock valuable papers(CB). The characteristics that make it possible to attribute the Central Bank to this type are:

• uniformity;
• issuance of a document by a limited, previously established number;
• expression of ownership of a certain share in the capital, property or liability fund;
• circulation in a special market.

Thus, the main types of stock securities include stocks and bonds. This type of securities is traded on stock exchanges ah, the main tasks of which are to ensure the movement of documents and the formation of prices for them. The exchange is considered a non-commercial enterprise - it is a separate business entity that provides a turnover financial resources and the Central Bank.

The issuer or organization that produces (issues) stock securities can be the state or commercial organization(entity). Their release occurs by concluding an agreement between the issuer and the investor, also called a subscription to shares. As a result of such actions, the issuer receives capital (cash), and the investor receives securities, which give him certain rights (depending on the type of securities). As a result of the transaction, the investor has rights, while the issuer has only obligations. The issue of securities should be distinguished from their purchase and sale in the primary or secondary market. The issue of the Central Bank is subject to mandatory registration with state bodies.

A share is a document that confirms the right to own a part of the property of the joint-stock company that issued it. The Central Bank gives the right not only to a part of the profit of the organization, but also to the management of the company within the framework of such participation, what share of shares, out of the total number of issued ones, their owner owns. The exercise of the right of management takes place at meetings of shareholders, among which parts of the company are distributed.

A bond, on the contrary, allows only to receive profit from the enterprise in the form of a predetermined percentage, without granting the right to participate in its development.

Stock papers (FS), depending on the nature of the expressed rights, are divided into main and auxiliary. The main securities give property rights to a part of the enterprise and profits from its activities. Ancillary securities provide the opportunity to periodically withdraw profits from the underlying security in the form of interest or dividends. Such securities are called coupons. They can be issued to the bearer, even if the main security is registered. In addition, there is a kind of auxiliary papers called coupons - papers that provide the right to receive a coupon. Auxiliary securities may be separate securities, however, they do not have the right to circulate on the stock exchange.

FB trading takes place in whole batches. To conduct transactions, there is no need to place the Central Bank on the stock exchange - it only records transactions according to documents that are placed on bank accounts.

The price of shares or bonds depends on the share of the profit that its owner can receive. The value of the family of securities on the stock exchange, in turn, forms the stock index - an indicator of the state of the market.

According to the law "On the Securities Market", in order to sell them on a special stock exchange, documents must go through the listing procedure - a special examination and inclusion in the quotation list. The quotation or value of the Central Bank is formed on the basis of supply and demand indicators in the process of collecting applications by special intermediaries - brokers. The broker collects clients' bids for the purchase and sale of shares, agreeing with the parties on an acceptable price and quantity of securities. The broker has the right to make transactions both in favor of clients and in his own favor for own funds. He passes the data to the dealer, who collects orders for deals on specific securities and publicly announces their value. Thus, the price of the company's shares is set on the stock market. If the agreed price suits both parties, the buyer and seller make a deal.

Important! The main task of the dealer is to form the purchase price and the sale price of the securities: the greater the difference between them, the more dynamic the market is. During the day, stock prices can fluctuate, depending on various factors. Their value is fixed at the time of opening and closing of the exchange.

On the stock exchanges, trading takes place not only in basic papers like shares or bonds, but also in other securities: bills, checks, warehouse certificates, bills of lading, mortgages, and so on.

Stocks and bonds are corporate securities and are classified as primary or basic securities of this kind. Secondary securities include derivatives of the Central Bank, giving the right to their owner to purchase or sell other securities during their validity period. Derivative papers also serve the state securities market.

Stock and commodity securities form a common securities market.

The difference between the stock market and the securities market

In the domestic economics the stock market and the securities market are often used as synonyms, although they have cardinal differences in essence. The reason for this is the poor development commodity market, which, along with the stock, forms the general market of the Central Bank.

The stock market is based on monetary relations - capital is mediated through stock securities. Commodity securities express goods or services that are sold and bought by market participants.

The main task of the securities market is to create inter-industry links, thanks to which companies can attract domestic and foreign investments and transform them into the necessary investment resources.

Participants of the securities market, with different functions, can be:

• the state (as a borrower of capital);
• individuals(population can only supply capital);
• legal entities (for example, banks or other financial institutions) - can act both as providers of financial resources and as their consumers.

The main task of the stock market is to attract investment in a sector of the economy or a company, as well as to provide investors with the opportunity to profitably invest their own funds. Market participants can be the state, individuals or legal entities.

The stock market is the largest part of the securities market.

At the moment, trading on the securities market, whether it be stock or commodity exchanges, does not require the mandatory physical presence of market participants. Thanks to Internet technologies, there are a number of trading programs that allow you to make transactions without leaving your home.

You can learn more about what the stock market is from this video:

security paper- this is a form of existence of capital, different from its commodity, productive and monetary forms, which can be transferred instead of itself, circulate on the market like a commodity and generate income. This is a special form of the existence of capital, the essence of which lies in the fact that the owner of the capital does not have capital itself, but has all the rights to it, which are fixed in the security. The latter makes it possible to separate the ownership of capital from capital itself and, accordingly, to include the latter in the market process in such forms as is necessary for the economy. In other words, a security is a representative of real capital that actually functions in the economy, and as capital, a security is a fictitious capital.

The security paper has two costs : value as a representative of real capital (face value) and value as fictitious capital (market value).

face value The value of a security finds its expression in the amount of money that a security represents when it is exchanged for real capital at the stage of its issue or redemption. This amount of money is called par value of a security .

Market price security arises as a result of the capitalization of its property rights. The main property right of a security is its right to income, therefore the value of a security is, first of all, the capitalization of this income, calculated as the quotient of dividing this income by the market (bank) interest rate. Other rights attached to the security are not rigorously quantifiable. The greater their significance from the point of view of the market, the less determined the process of pricing for this security, the higher the role of subjective psychological assessments.

Market price of a security is the monetary value of its market value. in practice it is called market value, market quotation, exchange rate, etc.

Securities may be registered (the name of the holder is registered in a special register maintained by the issuer), order (drawn up for the first holder with the clause "by his order" and transferred to another person by making an endorsement) and bearer (not registered with the issuer in the name of the holder and transferred to another person by delivery).

The securities may be documentary or uncertificated form may vary. by deadline (short-term, medium-term, long-term and indefinite), can be urgent (with a specific maturity) or deadline on presentation .

The securities may fixed or wavering income (yield to face value changes in accordance with fluctuations in the average interest rate On the market).

Promotion - this is a security that gives their holder the right to a share in the capital of the company of the issuer of these securities and to receive income from the profits of this company.

Joint-Stock Company- This is a commercial organization, the authorized capital of which is divided into a certain number of shares, certifying the obligations of shareholders in relation to the joint-stock company.

A joint stock company may be open (JSC) or closed (CJSC), which is reflected in its charter and name.

Shareholders JSC may transfer their shares into ownership to other persons as a result of free sale or donation without the consent of other shareholders of the JSC. The number of JSC shareholders is not limited; the minimum authorized capital of an OJSC must be at least 1,000 minimum wages established federal law on the date of registration of the company. An open joint stock company may also distribute shares by closed subscription, unless otherwise provided by the charter of the open joint stock company.

Stock Company distributed only among its founders (the number of shareholders should not exceed fifty) or among a predetermined circle of persons. The authorized capital of a CJSC should not be more than 1000 and less than 100 minimum wages.

Distinguish between ordinary and preferred shares.

ordinary share is a security that gives its owner the right to participate in general meeting shareholders with the right to vote on all issues of its competence, to receive dividends, as well as part of the property in the event of its liquidation. However, the last two rights are not guaranteed. All ordinary shares of the company have the same par value.

Preferred shares (prefactions) have certain advantages over ordinary shares regarding the receipt of dividends and the distribution of property in the event of liquidation of the joint-stock company. A joint-stock company may issue several types of preferred shares, while prefactions of the same type provide shareholders with an equal amount of rights and have the same nominal value. The nominal value of all placed prefactions must not exceed 25% authorized capital society. Preferred shares usually do not give their holders the right to vote at the general meeting of shareholders. The exception is cases when it comes to the reorganization or liquidation of a company, the introduction of amendments and additions to the charter of a joint-stock company that restrict the rights of holders of preferred shares, including cases of determining or changing the amount of a dividend and/or the liquidation value of preferred shares. The right to participate in the meeting of shareholders with the right to vote on all issues arises for the owners of prefactions in the event that the annual meeting of shareholders does not decide on the payment of dividends on prefactions, or decides on the incomplete payment of dividends on prefactions. Such right arises from the meeting following the above annual meeting and terminates from the moment of the first payment of dividends on shares in full.

Bond is an emissive security that secures the rights of its holder to receive from the issuer within the prescribed period of its face value and the percentage fixed in it of this value or other property equivalent. Each bond is issued not on its own, but as part of a bonded loan - in series, which consist of securities equal to each other in terms of the rights they provide.

Bond face value- this is the amount indicated on the bonds and certifying the size of the principal debt on it.

Bond rate determined as a percentage of the face value. Change of course is expressed in paragraphs.

Discount (premium)- negative (positive) difference between the sale price and the face value of the bond.

There are bonds that are initially placed at a price below par and are redeemed at par. These bonds are called zero coupon bonds . The income on them is just equal to the discount.

Coupon (coupon interest) For bonds is called a fixed percentage, which is set at the time the bond is issued.

Maturity date bond is considered the day when the joint-stock company returns to the owner of the bond an amount equal to the face value of the bond, having paid the prescribed interest on it.

Securities market (stock market) provides distribution Money between participants economic relations through the issuance of securities that have intrinsic value and can be sold, bought, and redeemed.

The securities market is divided into primary and secondary. In the primary market new issues of securities are sold, as a result of which the issuer receives the funds he needs, and the papers end up in the hands of the original buyers. Subsequent resales of securities form secondary market , on which there is no accumulation of new financial resources for the issuer, but only a redistribution of resources among subsequent investors. By creating a mechanism for the immediate resale of securities, the secondary market strengthens the confidence of investors in them, stimulates their desire to buy new stock values, and thereby contributes to a more complete accumulation of society's resources in the interests of production. The core of the secondary securities market is the stock exchange.

Stock Exchange. is a market organized in a certain way in which transactions for the purchase and sale of securities are carried out.

The stock market is mainly three categories of participants :

1) brokers or brokers(trade at the expense of the client, receiving commissions for their work);

2) dealers or traders(trade at their own expense and in their own interests);

3) exchange specialists(trade at their own expense in the interests of the exchange).

Only its members can trade on the stock exchange. Other participants in the stock market may trade on the stock exchange through the mediation of members of the stock exchange. The stock exchange is obliged to ensure transparency and publicity during trading. The Exchange is not entitled to set the amount of remuneration charged by its members for transactions with their participation. The Exchange independently establishes the procedure for inclusion in the list of securities that have passed the listing and delisting procedure.

Goods that are sold on the exchange must have such qualities as mass character, qualitative homogeneity and interchangeability, relative unpredictability of prices. To simplify exchange trading, not only types are standardized, but also volumes that can be sold under one contract. These minimum quantities are called exchange unit.

Business is a very exciting thing. This is what successful and richest entrepreneurs think: Bill Gates, Warren Buffett, Jeff Bezos, Mark Zuckerberg, and others. Their capital was formed not only thanks to brilliant ideas and commercial talent, but also due to the popularity of their shares on world exchanges. And if Microsoft or Facebook can be attributed to the technology sector, then the Buffett Foundation for a long time did without them at all. Consequently, different types of shares can bring huge fortunes.

Many consider activity in this complex and voluminous market to be the lot of the elite: work requires an analytical mindset, many years of experience, and professionalism. Others see securities as something like casino chips, trying to capitalize on their fluctuations. Which view is the most correct? Many of the billionaires on the Forbes list started their fortunes with the first small investments, contracts and deals - perhaps only Soros has succeeded using a speculative approach. The securities market is extremely diverse - but before touching on individual types of assets, let's talk about the history and regulation of this market.

History and regulation of the securities market

The first exchanges were organized in London and Antwerp at the beginning of the 16th century to trade in commercial bills and promissory notes of states. The exchange was thus a place for transactions. In Russia, stock exchanges appeared in the 1830s and actively developed until the outbreak of the First World War, with the railway market acting as a catalyst in the 1860s. People felt the taste of "fast" money and started speculating, according to the memoirs of contemporaries, there was a stir around. In 1900 in St. Petersburg with commodity exchange, which existed since 1701, created a special department for trading in currency and stock assets.

In the US, the stock market has been operating since 1792 and is often a standard of comparison - it is on it that the maximum amount of information has been accumulated. In 1924, the first American one appeared, allowing you to immediately invest in a pool of assets. In 1997, Russian mutual funds. In addition, since 1993, diversified instruments of many stocks or bonds traded on stock exchanges as one share have been circulating on the international market.

The modern International Federation of Exchanges has more than 50 trading floors, where almost 40 thousand joint-stock companies and a huge number of qualified players are represented. The world's largest centralized exchanges are London, New York, Tokyo and Euronext.

The securities market in the state performs a number of important functions: investing borrowed funds in business, private savings, and activating entrepreneurship. This is an important component of the country's stability, therefore, in all modern states, the regulation of the securities market is carried out very carefully.

Regulation of the securities market is a constantly changing process, adapting to the needs of society and ultimately aimed at the benefit of the investor. Thus, in May 1975, fixed commissions to Wall Street players were abolished, initiating price competition. Gradually, cheaper and cheaper investment products appeared, the threshold for entry into financial institutions. Electronic form replaced paper, allowing you to send copies of the originals to the other side of the world in a few seconds - today, having an amount of several thousand dollars, private investor has the ability to buy assets around the world. In the United States, it is engaged in the regulation of the securities market.

In Russia, the market for financial instruments was reopened only in the early 1990s - the 1996 law "On the Securities Market" established the procedure for the work of all interested parties in the Russian Federation. He defined the interactions of the participants, incl. professional, when dealing with securities, the obligation of licensing and information transparency, the role of, opportunities for self-regulation of organizations. Regulation ensured the interests of all market participants, although in the early years it did not rule out a large number of manipulations.

Since the activity of the securities market is closely intertwined with the economy, the regulations governing it are contained in a large number legal documents civil legislation related to the work of the banking and investment sectors and trading floors.

Participants of the securities market and its structure

In national law, it is fixed that participants in the securities market are divided into issuers, investors and professional participants.

Organizations start selling securities when they need to replenish capital or want to raise money for a certain period. For example, to expand the business. The buyers are organizations and individuals who purchase securities in order to generate income and take part in the management joint stock company.

The intermediary role is performed by licensed legal entities: brokers, dealers, management companies, depositories, registrars, clearing organizations. What exactly are they doing?

The broker performs transactions on behalf of the client. The dealer acts independently, and the forex dealer can cooperate with citizens on unorganized auctions. Currency speculation is not investing, currency market- just a way to exchange one currency at the current rate for another at a more favorable rate than in a bank around the corner. However, a few years ago, on the wave of interest in the unregulated foreign exchange market in Russia and the CIS, there were several large ones with a yield of about 10% per month.

Management companies manage the securities of their clients - the most common. The depository is designed to store securities, and the register keeper collects and stores information about their owners. Clearing organizations organize reporting on transactions.

On their exchange sites ( self-regulatory organizations) organize trading in stock assets, i.e. the exchange cannot carry out transactions with securities on its own behalf and at the request of clients. In fact, today's exchange has the same basic functions as several centuries ago - it is an intermediary, a guarantor of a transaction between the parties. The most major exchange in Russia - . When the paper is placed on the market for the first time, a procedure is carried out. After the security has been bought by the first investor, he can sell it to another at the established price. The exchange of securities between investors without the mediation of the issuer is called the secondary market. An analogy can be found in the real estate market, where primary property means a new apartment, and secondary property means a private owner.

If securities exist but are not listed on the stock exchange, they can be bought and sold using electronic trading systems. The range of assets is from shares of small factories at a few kopecks apiece to Eurobonds from $100,000 or euros. The main problem outside exchange market- low.

Banks occupy a special position in the securities market: they attract money and invest it, participate in investment transactions(for example, they list the company's shares on the stock exchange), advise investors. At the same time, consultation will always be beneficial for the bank, but not always for the other party. Under a special license, banks provide brokerage, dealer, depository, management and clearing services. Through cash and credit operations Since 2013, the Bank of Russia has been playing the role of the main institutional regulator of the market. It is important to note that major players (including banks) act as market makers, providing market liquidity. Read more about market makers.

professional market securities abroad may differ slightly from Russian rules and composition of participants, however, in general, the stock markets of various countries are regulated in a similar way. For example, the US market is much larger and more liquid than the Russian market: it has a much larger number of securities that are in demand. Accordingly, the share of private investors abroad is much higher than the domestic indicator. If in the Russian Federation only 1% of the population is active in the stock market, then in the USA - almost 50%, in Germany and Japan -30%, in Australia - 40%.

Typology of securities

The securities market in Russia is represented by shares, bonds, promissory notes, checks, mortgages, investment shares, bills of lading, double and simple warehouse certificates, pledge certificates - warrants, savings and deposit certificates, etc.

Novice entrepreneurs-investors get confused in numerous securities, and strange names sometimes create the illusion of a special market complexity. For example, the unusual term "blue chips" is used to refer to the shares of the most stable companies, and "fallen angels" are securities of previously profitable, but now depreciated firms. In the 1980s, Buffett, known for his love of cheap but promising securities, successfully invested in fallen angel bonds.

Experts have not yet compiled an exhaustive list of classifications, since financial securities markets are developing dynamically and new products appear on them from time to time. Common typologies of securities are summarized in the matrix below:

CAPITAL / INVESTMENT (receiving income, increasing the capital of companies) shares, bonds, shares of cooperatives, investment certificates, mortgage bonds, issuer options	CASH (DEBT)/ NON-INVESTMENT (servicing cash settlements, ensuring the circulation of capital) commercial and financial bills for up to 1 year, banker's acceptances, commercial corporate paper for up to 1 year, short-term savings bonds and bank certificates of deposit, government treasury bills, government bonds for 3, 6, 9, 12 months, check, bill of lading
PRIMARY / BASIC (provide monetary and property rights) shares, bonds, promissory notes, pledges, bank certificates		SECONDARY / DERIVATIVES (gives the right to primary securities, the value depends on the primary) stock warrants, depositary receipts, issuer option, futures, swaps
MORTGAGE (serve the mortgage agreement) mortgage bonds and participation certificates, collateral / mortgages, FON certificates	PRIVATIZATION (the right to receive a share of property free of charge) privatization check	COMMODITY DISTRIBUTION (the right to dispose of the said property) bill of lading, warehouse receipt, warrant
EMISSION (issued in large quantities, registered) shares, bonds, bank certificate, issuer option		NON-EMISSION (issued individually) bill of lading, bill of lading
(ownership of shares in the authorized capital) shares, investment certificates		DEBT (cash loan) promissory note, bonds, government treasury bills of lading, savings (deposit) certificates
shares, mortgage, bonds, promissory note, bank certificate, bill of lading, issuer option, gold certificates	BEARER bonds, promissory note, bank certificate, bill of lading, OGSZ	ORDER (transferred to another person by making an endorsement) bond check, bill of exchange, bank certificate, bill of lading
STATE (issued by government agencies) GKO, OFZ, OGSS, KO, OVVZ, gold certificates		CORPORATE (issued by commercial organizations) shares, bonds, promissory note, eurobonds, euronotes, euroshares
(lifetime is limited) deposits, bonds, promissory note, bank certificate, bill of lading, mortgage		PERMANENT (existence is not limited)
DOCUMENTARY (paper form) shares, bonds, promissory note, bank certificate, bill of lading, mortgage, OGSZ		UNDOCUMENTARY (entry in the register of holders) stocks, bonds, GKOs
PROFITABLE (generate income)		NON-INCOME (certify the owner's right to goods, money, and not to capital)
IRREVOCABLE (cannot be withdrawn and repaid early)		REVIEW (may be withdrawn and repaid early)
MARKET (freely traded on the market)		NON-MARKET (cannot be resold, returned only to the issuer)
WITH A CONSTANT VALUE (when issued, the denomination is indicated)		WITH VARIABLE RATING (issued without monetary value)
FIXED INCOME (the amount of income is specified in advance)		WITH NON-FIXED INCOME (the amount of income is determined by the results of work)
NATIONAL (issued by residents of the state)		FOREIGN (issued by residents of a foreign state)

In abbreviated form, you can use the following scheme:

Risks and profitability of securities

The market is in constant motion. New securities appear, old ones disappear. World famous giants are losing popularity, and in their place come previously unknown new stars. Some companies go bankrupt, while others soar by thousands of percent. Huge markets for new asset classes are emerging, as was the case with mortgage bonds in the 1980s. Inflate and occur global. How can a lone investor not get lost in this ocean?

Investing money, incl. By purchasing investment papers, investors are looking for a balance between risk and profit. At the same time, it is not at all necessary to be well versed in each type of security from the table above in order to be a good investor - the ability to use a compass and navigate by the stars can be enough to bring a ship in the ocean to the target. Although the experience of actually hitting the waves of the market certainly adds stability to your ship.

Until now, the most popular among Russians are bank deposits with low yield, for which exchanges and securities are not needed - however, it is quite possible to find, for example, large Russian issuers, whose bond yield will be a couple of percent higher than the yield of standard deposits. The risk is that deposits are insured against bank failure, but not against issuer failure. And if the deposit is not taxed, then when working with a bond, income tax may arise. In addition, since 2015, an individual investment account () has been available for Russians.

in the best way optimize risk is portfolio investment. For a primary understanding, we can say that it is aimed at diversification - combining, taking into account their urgency, reliability, riskiness and profitability. Thus, potential losses from risky assets during bad periods are smoothed out. guaranteed profit from less risky ones. But in fact, this method has other advantages.

Numerically, risk is measured by the standard deviation from the average return on a security. Simply put, this is the range of fluctuations in quotes - and the more profitable the asset, the stronger the fluctuations: when buying potentially high-yielding securities, there is a high risk. How would you feel if, after buying a stock for $100, at some point it will cost half as much? Therefore, a classification that helps to make decisions has been developed for investors:

• risk-free - US government short-term debt obligations up to a year (treasury bills);
• low-risk - government bonds (GKO, and others);
• medium-risk - bank certificates, mortgages, corporate;
• high-risk - stocks and derivatives (derivatives).

Gamblers willing to take risks for profits are attracted to stocks and derivatives. Conservatives will choose OFZ, bills and investing in gold. Prudent investors are focused on compiling a portfolio of different securities. The classification described is often represented by something like this diagram:

In this case, you need to understand the difference between shares and derivatives. In the simplest case, a derivative instrument can be represented as a change in the price of an asset multiplied by a certain coefficient. For example, if the price of a share rose by 1%, then that share could rise by 10%. But the fall will be appropriate. The derivatives mechanism is based on leverage from a liquidity provider, in other words, a loan for buying or selling futures.

And here lies the main difference. A derivative instrument is a swing game, a casino. A bet on the rise or fall of the underlying asset using borrowed money. At the same time, the long-term change in the share price has a different nature - it is an indicator of the company's business performance. Since stocks and entire markets can drop 50% or less in value in the short term, using even a very small 1:2 ratio can lead to a complete loss of funds. The stock market is growing in the future, but greed in the form of buying a derivative instrument can destroy all capital, as it will not allow you to survive the inevitable market drawdowns. And this capital will go to another player - the one who bet on the fall.

The future of the market

The securities market has great prospects associated with positive trends:

• the level of capitalization of companies and the volume of exchange operations are increasing;
• information support has improved, trading technology has changed - exchanges have become electronic;
• organizational changes are taking place - trading platforms are becoming self-regulating;
• the activity of investors when buying shares is growing;
• changes in pension, tax and social security legislation encourage private investors to actively work in the market.

The attractiveness of the participation of individuals and organizations in investment transactions is also increasing as the global financial market.

The securities market, despite its unity, can be conditionally divided into several segments, which are also called markets. They are characterized by specific conditions, trading participants, securities circulating on them.

The securities market is divided into two types:

1) primary;

2) secondary.

In an attempt to give the most general definitions, "primary market" is a term used to describe when securities first appear in the public arena, usually in exchange for cash.

The secondary market is a term used to describe cases where the second and subsequent tranches of outstanding securities appear in the public arena; it is also the market in which the securities that have previously appeared on the market are traded.

Legislatively primary securities market is defined as the relationship that develops when issuing (for securities investment securities) or when concluding civil law transactions between persons incurring obligations for other securities and the first investors, professional participants in the securities market, as well as their representatives.

Thus, the primary market is the market for the first and repeated issues of securities, in which their initial placement among investors is carried out.

In the primary securities market, all types of existing securities are sold: shares and bonds of enterprises, short-term government securities, government foreign currency loan bonds, financial instruments (various certificates issued by banks, bills of exchange). Realization in the primary market is carried out through stock stores, as well as the current system of intermediaries: brokers and commercial banks.

The most important feature of the primary market is the full disclosure of information to investors, allowing them to make an informed choice of a security for investing money. All activities in the primary market serve to disclose information:

Preparation of the issue prospectus, its registration and control by state bodies from the standpoint of the completeness of the data presented;

Publication of the prospectus and subscription results, etc.

A feature of domestic practice is that the primary securities market still prevails. This trend is explained by such processes as privatization, the creation of new joint-stock companies, the financing of public debt through the issuance of securities, the re-registration of the state's foreign currency debt through the stock market, etc.

The primary market includes:

Stock market;

Bond market.

There are two forms of the primary securities market:

Private accommodation;

public offer.

Private accommodation characterized by the sale (exchange) of securities to a limited number of previously known investors without a public offer and sale.

public offer - this is the placement of securities during their initial issue by public announcement and sale to an unlimited number of investors.

The relationship between a public offering and a private offering is constantly changing and depends on the type of financing that enterprises in a particular economy choose, on the structural changes that the government is implementing, and other factors.

It is very important to note that the primary market is the market for new issues and is the method that most borrowers use to raise new resources. For this market to work successfully, it is vital that savers and investors have the confidence that they are investing their money in this market for good reason. A weak primary market will undermine secondary market liquidity. Therefore, there is a need to provide accurate information so that investors can compare with other forms of investment and decide whether to invest in each new issue. In other words, a good primary market should be selective in order to be able to judge value.

On the other hand, the issuer needs a good primary market in order for the offer to purchase securities to reach the widest possible audience of potential investors, which should allow him to get the most favorable price for the offered securities.

There are several methods for listing securities on an organized primary market. These include:

1) direct invitation by the company. The Company invites the public to subscribe for its securities at a fixed price through the publication of a prospectus; all necessary formalities and underwriting (guaranteeing the issue) are carried out by the issuing company (usually an investment bank / securities company);

2) offer for sale. This method can be used in a situation where one of the original or existing shareholders wants to offer their shares to the public. The company may organize a syndicate of banks and brokerage firms that purchase the entire issue for distribution to their customers. Old shareholders may be the first to purchase the offered shares;

3) tender offer. The investor is invited to participate in the tender for the purchase of shares at the lowest price. After deadline When a company's financial advisors calculate an exercise price that will allow the issuing company to raise the maximum required funding, the exercise price can be lowered if the company targets a particularly wide range of shareholders (a large number of shareholders owning a small number of shares each). A company can acquire much more funds as a result of bidding than it would if it allowed speculative investors to cash in on first-day trading premiums, which could happen if the issue price was underpriced. If someone acts as an underwriter for an issue, then it (the issue) will be sold at the minimum tender price;

4) private placement. A method in which an investment bank subscribes to an offer of shares by first identifying a small group of clients to whom it then resells the shares. Alternatively, an investment bank may be used as an agent and be responsible for finding the ultimate investors for the issuing company. This method is often cheaper for the company than a public offer, because even though the price may be somewhat lower for clients (in order to make investments more attractive and compensate for their potential illiquidity), it will still be less than the cost of underwriting, which is not necessary in this case.

However, it should be noted that the regulators of the securities market usually insist on protecting the interests of investors, which is determined by the requirement for a minimum number of shareholders and a certain percentage of shares that must be sold to the public (usually 25%). The latter requirement is usually met through the use of a second investment bank or brokerage firm that distributes the shares. Using a placement method can be not only the cheapest method for small releases, but also the fastest. There is also a higher likelihood of a successful issuance, especially when there are already companies queuing to subscribe or sell, which can absorb all available funds;

5) reverse absorption by conditional issue of securities. The method by which a private company can achieve a listing in a situation where a public company offers its shares in exchange for the opportunity to purchase the private company's assets; if a controlling interest passes to a private company, then in fact it can be considered that it has privileges in terms of raising funds, since it received a listing;

6) admission of shares to the quotation on the stock exchange. When using this method, there is no need to issue new securities, but the company's share capital must be sufficiently paid up in order to gain access to a listing or listing on the exchange. It should be understood that with this form of proposal, the company does not raise any new funds. The company is required to provide a document of admission, but is generally not required to provide a prospectus unless, following admission, the company plans an additional issue of shares or fundraising activities.

While one of the main challenges facing the securities market is to provide an efficient mechanism for attracting capital for economic growth, it is equally important that there are opportunities to profit from the risk taken by those who provide the capital.

Under secondary stock market refers to the relations that develop during the circulation of previously issued securities in the primary market. The basis of the secondary market is made up of transactions that formalize the redistribution of spheres of influence of investments of foreign investors, as well as individual speculative transactions.

The most important feature of the secondary market is its liquidity, i.e. the possibility of successful and extensive trading, the ability to absorb significant volumes of securities in a short time, with small fluctuations in rates and at low implementation costs.

The secondary securities market is divided into an organized (exchange) market and an unorganized (over-the-counter or "street") market.

Classification of the securities market by organization of trade includes:

Exchange market;

Over-the-counter (retail) market;

Electronic Market.

By types of securities circulating, in particular, on Russian market stand out today:

1) government securities market;

2) the stock market, in which, in turn, there are three main segments (sometimes they are called echelons): "blue chips" (the most liquid shares of the largest Russian companies), "second tier" shares that are approaching them, but have not yet reached the appropriate liquidity , and shares of enterprises that practically do not appear on the market;

3) the securities market of local importance (in the majority - municipal bonds or bonds of the subject of the federation);

4) markets for promissory notes of different issuers;

5) markets for derivative securities (mainly futures).

The most developed is the exchange market. It is characterized by high turnover, which allows you to create a highly efficient infrastructure that can take on most of the risks and significantly speed up transactions and reduce unit overhead costs. The price for this is a strict standardization of the transaction, severe restrictions on the activities of market participants, increased obligations in relation to maintaining liquidity and reliability.

Organized market (exchange) is an auction type market. It is characterized by public vowel auctions, open competitions between the buyer and the seller with the presence of a mechanism for compiling bids and offers for sale, which can serve as the basis for concluding transactions. This is the circulation of securities on the basis of firm stable rules between licensed professional intermediaries - market participants on behalf of other market participants.

The stock market is the trading of securities on the stock exchange. This is always an organized securities market, trading on it is carried out strictly according to the rules of the exchange and only between exchange intermediaries, who are selected among all other participants.

The organized or exchange market is exhausted by the concept of the stock exchange as a special, institutionally organized market in which securities of the highest quality are traded and transactions are carried out by professional participants in the securities market.

Unorganized market (free, retail, over-the-counter) this is the circulation of securities without observing the rules uniform for all market participants. Trade takes place spontaneously, in contact between the seller and the buyer. Information about completed transactions is not recorded.

In the case when transactions are small, it is still unprofitable to execute them through large specialized trading systems. This is due to purely economic parameters. In this case, the buyer goes directly to the dealer and buys paper directly from him. As an example, we can point to many of our banks that trade in savings loan bonds for the public. This is a special segment of the securities market, which differs from the exchange market in many ways. It is called the retail (over-the-counter) market (OTS - market from the English Over the Counter - trade from behind the counter).

Note that sometimes, on the contrary, very large transactions are made on the over-the-counter market, for example, the purchase and sale of a controlling stake. In general, this is a market for individual, non-standardized transactions.

The over-the-counter market is the trade in securities bypassing the stock exchange, the sphere of circulation of securities that are not admitted to quotation on stock exchanges. New issues of securities are also placed on the OTC market. The OTC market is organized by dealers who may or may not be members of the stock exchange.

An organized market requires that stocks and bonds offered for sale undergo special registration and satisfy a set of additional conditions that provide maximum business information about the business for which these securities are issued to finance. Their purchase and sale is carried out by application on the stock exchange, and all procedural issues related to this are strictly regulated by the rules of this exchange and state legislation.

The free market in this sense does not impose strict requirements on sellers and buyers. There are legislative norms that provide full control over entrepreneurial activity. To the same extent as in the organized market, companies issuing securities bear administrative and criminal liability for deceiving or misinforming the buyer. Intermediaries act in accordance with official rules and regulations for customer service, and the purchase and sale of securities itself is subject to legal registration and has an absolutely legal character.

An organized securities market - a system of stock exchanges - has inalienable features:

1) transactions are frequent;

2) there is almost never a big gap between the demand price and the offer price;

3) transactions are carried out in a short time, as a rule, there are no significant price fluctuations.

All this is ensured by a set of purposeful organizational actions.

It is necessary that the circle of holders of securities of each company be as wide as possible. In addition, short-term purchase and sale transactions should be facilitated in every possible way. Another important factor is the presence of a large number of large companies, but the organized market must be represented by medium and small companies.

It should also be noted that the organized market has the ability to self-accelerate and self-decelerate. An active market creates the impression of easy liquidity of securities, which stimulates their purchase. In addition, it attracts with a variety of opportunities, which increases the number of operations on a credit basis.

A free securities market can be described as a market that does not have a fixed location, transactions in which are carried out outside the exchange. Another name - the telephone market - indicates the main way transactions are carried out.

The free market is the second equally important area for the distribution and circulation of investment resources. For some types of securities, it is inferior, and for others it is significantly superior to the exchange system. This applies primarily to state and municipal bonds, shares of many banks, insurance and investment companies. Together with them, a huge number of issues usually circulate on the free market, which, for various reasons, cannot be traded on the stock exchange.

These include the following:

Issues aimed at a limited circle of potential buyers, requiring special methods of distribution;

Small releases;

Papers with a very high price;

Papers in which supply matches demand, i.e. the buyer is widely known and it is easy to distribute papers;

Securities issued on the security of real estate;

Papers closely related to regional economic complexes or social and industrial infrastructure;

Paperless form of issue, when the issuer does not want to advertise himself.

Also on the free market, transactions are made with the shares of large companies circulating in the exchange system.

The main participants in the free market are brokerage and dealer offices, which are characterized by a relatively narrow specialization in types of securities and transactions, as well as banks and investment companies. In turn, banks are divided into investment banks, the main subject of which is the subscription to the distribution of shares and bonds of various corporations, and commercial banks, which are mainly engaged in the sale of federal and local bonds on the free market. A significant number of transactions in the free market are carried out not on a commission, but on a net (or dealer) basis. This means that services are rendered to clients for the sake of income from the price difference - from the subsequent resale by the dealer of securities at a higher price or from their purchase for clients at a lower price.

The free market is always not only under state control, but also under the control of an association that unites these market entities. In all developed capitalist countries, participants in the free market, as well as participants in stock exchanges, are subject not only to legal, but also to professional and qualification control.

Commissions in the free market are not regulated by general rules. In fact, commissions range from the minimum values ​​in the organized market to 5% (and sometimes even higher) of the transaction amount in the free market.

The secondary market consists of two parts. One of these parts can be described as a market for "used" securities. The second part consists of additional issues of securities already in circulation, regardless of whether the issue results in raising new funds or not.

The following are the methods that are used to obtain a listing for new issues of already existing securities that are already listed:

1) listing through execution or conversion. New securities or new issues of securities already traded may be listed by exercising a new share option (employee or executive bonus schemes) or by converting a listed security into another form of security, or by subscribing warrants for conversion into another form. valuable papers;

2) release of rights. The company wants to raise additional funds through the issuance and listing of a new issue of ordinary shares under preferred terms at a fixed price (usually slightly below the current market price). If one of the shareholders does not want to acquire these rights, then they can be sold outside the company, and the premium, that is, the amount of the excess of the issue price, will be credited to the account of the refused shareholder;

3) open offer. The offer is made to shareholders, inviting them to subscribe to purchase additional shares at a fixed price, but (unlike in a rights issue) the number of shares purchased will not necessarily depend on the number of shares the shareholder already owns. This process results in a higher price, as shareholders who are willing to pay more will receive more shares. From a regulatory point of view, there is a trade-off between the preemptive right principle and the fact that the company raises additional funds;

4) bonus or capitalization issues. Shares are created as a result of the capitalization of reserves and are distributed free of charge to existing shareholders in proportion to the number of shares they already own.

Securities can be traded on traditional and computerized (electronic) markets.

In the electronic market, trading is carried out through computer networks that combine the relevant stock intermediaries into a single computer market, which is characterized by:

Lack of a physical location where sellers and buyers meet;

Full automation of the trading process to enter their applications for the purchase and sale of securities in the trading system.

Electronic securities markets arose later than exchanges - with the advent of modern means of communication and informatics. Currently, the turnover on them is comparable to the exchange. There were several such systems in Russia, but today only the Russian trading system really works.

Trade in it is carried out by professional brokers and dealers, united in the associations PAUFOR (Professional Association of Russian Stock Market Participants) and NAUFOR (National Association of Russian Stock Market Participants). In these trading systems there are trading in shares of "blue chips" (RTS) and shares of the second tier (RTS-2). The difference from exchange trading lies mainly in the mechanism for executing transactions: by setting electronic system quotes for the security of interest, the trader-market-taker contacts the market-maker who issued the quote directly and concludes a standardized deal.

Markets of derivative securities. Separately, it is worth dwelling on the role of the organizer of trading in the derivatives markets. Since a futures contract is a mutual obligation to buy (respectively sell) the underlying security at a certain moment and at a predetermined price, the role of the organizer of the auction is, first of all, to ensure the fulfillment of this obligation. This is achieved by making both parties to the transaction a special pledge - margin. In the event that one of the parties fails to fulfill its obligations, the margin is used to compensate for the loss to the other party.

Stocks and bods market represents a special part of the sphere of circulation, which involves shares, bonds, savings certificates(documents certifying the fact of ownership of securities), bills of exchange, treasury (treasury - the financial body of the government) government obligations.

The following entities participate in the securities market:

• a) issuers - legal entities that are engaged in the issue (issue) of securities and are responsible for them
• b) investors - legal entities and individuals who purchase securities on their own behalf and at their own expense
• c) investment institutions - legal entities acting as investment advisors, financial intermediaries and investment companies

The securities market is divided into two types: primary and secondary.

• In the primary market, the issuer (enterprise, state institution) sells new issues of securities and receives the necessary funds for them. Such securities are immediately acquired by the initial investors (abroad - financial and credit institutions or individual investors).

• The secondary market consists of subsequent investors between whom the resale (first and subsequent) of securities takes place. Secondary trade is supported by banks and specialized firms (investment institutions).

In turn, the secondary market is divided into over-the-counter and exchange turnover of securities.

Over-the-counter turnover has the following features:

• a) it does not have a single shopping center
• b) the purchase and sale of securities is carried out through brokerage houses that mediate in the conclusion of transactions and are located throughout the country
• c) transaction prices are set during negotiations between counterparties
• d) brokerage houses are not specialized in types of transactions
• e) the transactions themselves are made through telephone conversations and special computer networks (automatic price fixing systems) covering the whole country

Exchange turnover has the following characteristics:

• a) for the purchase and sale of securities, a single center is created - the stock exchange
• b) on the stock exchange, securities are sold at auction
• c) all purchase and sale transactions are registered according to the rules of the exchange
• d) exchange transactions are narrowly specialized in certain types
• e) the sale of securities is carried out through commercial intermediaries (brokers, brokers)

Now let's take a closer look at the activities of the stock exchange. Its main tasks are:

• bring buyers and sellers of securities together
• determine their rates (prices)
• promote the transfer of capital from a less profitable sector of the economy (or enterprise) to more profitable
• serve as a barometer of business activity in the country. This purpose is served by indexes of business activity. The most famous is the Dow Jones index (introduced since 1884). It is calculated based on the stock prices of the 30 largest companies

The stock exchange originally developed as a free market for securities (funds). For a long time, the state did not interfere in the content of the activities of this institution. The “wild” exchange, which became widespread in the 19th century, operated without any external restrictions. This activity in the 1920s. accompanied by unprecedented stock market speculation. The prices of securities were constantly rising. The growing flow of buyers of shares made extensive use not of their own savings, but of loans from commercial banks. As a result, share prices have sharply broken away from their face value and began to decline, and creditors demanded the return of loans. To get the necessary funds, speculators began to sell shares, thereby hastening a sharp fall in their prices, as well as a fall in the level of production.

After the great world economic crisis 1929-1933, to which the "wild" exchanges made a significant contribution, a radical transformation of the securities market was carried out. In the 1930s in the USA, and then in other countries, a modern "cultural" exchange was created. Unlike the “wild” one, it is subject to state regulation:

• state control over participants in exchange transactions has been introduced or strengthened (strict verification of enterprises wishing to sell their securities is designed to prevent potential bankrupts from entering the market)
• the state appoints brokers - the main exchange intermediaries and controls their work
• exchange credit is placed under state control (the amount of borrowed funds used to purchase shares, the size of quotation fluctuations are limited), in order to avoid the danger of sharp fluctuations in share prices and protect the exchange from mass speculation
• introduced state insurance bank deposits and loans, guaranteeing the safety of small and medium savers
• the state influences exchange affairs: it actively changes discount rates, conducts transactions with securities, regulates the minimum reserves of funds, which all banking organizations are required to keep in special accounts with the Central Bank

In each major country The West operates, as a rule, several stock exchanges. Only intermediaries are engaged in the purchase and sale of securities on them:

• a) a broker who brings partners in transactions (indicates the possibility of concluding them), but does not conclude transactions himself and receives remuneration from sellers and buyers of securities
• b) broker (person or firm) - a narrow specialist in certain types of securities, which directly facilitates a trade transaction. For this, he receives a certain fee or commission (by agreement of the parties)
• c) dealer - buys securities in his name and at his own expense, and then resells them. The proceeds from such resale is his profit.

Brokers (with the help of brokers) determine at what rate of securities their greatest circulation is achieved. This is the so-called rate of cash transactions, or a single rate. To do this, the exchange brings together "seller prices" and "buyers' prices" and sets a single price that suits the largest number of participants in transactions.

Here is a simple (conditional) example. Nine sellers and nine buyers are interested in the same shares, but are willing to sell or buy them at different prices. Obviously, the single rate will be 204 yen per share. A deal at this rate is beneficial for sellers from "D" to "I" and buyers from "O" to "T". This means that a single rate gives the maximum number of transactions. Of course, not 9 sellers and 9 buyers participate on the exchange, but much more, but this does not change the essence of the rate of cash transactions.

Table. Sellers and buyers price per share

Salesman	Would like to receive per share, yen	Buyer	Willing to pay maximum per share, yen
A	208	TO	200
B	207	L	201
IN	206	M	202
G	205	n	203
D	204	ABOUT	204
E	203	P	205
AND	202	R	206
3	201	With	207
AND	200	T	208

Those who have invested their money in equity capital, in addition to the dividend, can receive the so-called exchange gain - income from changes in the market price of shares. In this regard, there are two types of exchange transactions: cash, in which money is paid for securities immediately or in the next 2-3 days, and futures (urgent), when the share must be transferred, and the money is paid after a certain period, usually within month.

The bulk of transactions on the exchange are futures transactions, as they say, "for the difference." Upon the expiration of the agreed period, one of the counterparties must pay the other the amount of the difference between the rates established at the conclusion of the transaction and the rates actually prevailing at the time of the expiration of the contract. For example, if on August 1 the seller sells a share for the period up to August 31 for 100 euros, and during this time its price has risen to 120 euros, then the buyer wins: he will receive a share for 100 euros, or he can sell it for 120. If the share price falls up to 80 euros the seller wins: he will sell the share purchased for 80 euros for 100 euros. Persons speculating on the sale of shares (in the English exchange terminology “bears” or “lowers”), through the press, radio, television, achieve a reduction in their prices by the liquidation period, for which they create an artificial excess of the supply of shares over their demand. In contrast, buyers of stocks for a period of time, playing on the increase in prices, are called "bulls" ("increasers"). They also expect to receive exchange rate profits by their methods.

Anyone who invests their money in stocks is, of course, exposed to a certain risk. How to reduce it?

1. It is advisable to invest in stocks only that part of your savings that will not be needed for a long time. This will allow you to choose the most favorable moments to comply with the old exchange rule: buy at a low rate, sell at a high rate.
2. It is advisable for an investor to study the company whose shares he is going to acquire. It is important to know reliably about the reliability of the financial position of the chosen company and the growth of its income.
3. When buying shares, it is advisable not to wait for an extremely low rate, and when selling - absolutely high level. Then it is more likely to get a good market value from one share.
4. Since too many unforeseen events can affect the exchange, it is recommended to receive information on the progress of affairs from specialists. They have reliable information about the state of markets and enterprises.

In this regard, it is useful to know that the American economists Harry Markovets, Merton Miller and William Sharp tried to solve the puzzling problem of financial investment, in 1990 they received Nobel Prize for developing the theory of optimal (best) portfolio choice. A "portfolio" is commonly understood as a list of different types of securities (stocks, bonds, debt obligations, etc.). Portfolio choice means the distribution (and redistribution) of economic resources among various types of production through financial markets. With this choice, investors seek to maximize their future income and minimize the risk associated with the acquisition of securities.

With the help of mathematics and statistics, Nobel laureates managed to determine the relationship between income from securities and the degree of risk. In particular, a regularity was revealed: the higher the expected income from a share, the lower the possibility of receiving it, and, consequently, the higher the investor's risk. Important conclusions were made regarding the profitability of the optimal (best) packages of securities, risk management in financial markets, etc. Today, the theory of portfolio choice has firmly entered the practice of business life, in some countries it is studied even in high school.

Trends in the development of securities markets

Of particular note are the latest trends in the development of securities markets.

One of them is to diversify (increase variety) financial investment, i.e. their dispersal across different enterprises and sectors of the economy. It has become a truism that an investor should not risk all his capital by placing it in a single business. Therefore, now a typical picture in the financial markets has become an increase in the number of diversified corporations, whose activities are less and less controlled by the owners of large blocks of shares. With dispersed shares, the securities market is characterized by high liquidity and dynamic development, since it depends on many groups of owners. Today, the financial position of large companies is increasingly dependent on those managers who are responsible for financial matters.

Another important trend is the development financial economy, which consists of modern financial markets (securities, currencies, investments) and has a relative technical and organizational independence. New types of transactions are emerging in these markets. Thus, the foreign exchange market serves the turnover of goods, services, capital, determines exchange rates based on balancing supply and demand. As currency fluctuations have increased and their forecasting has become more difficult, protection against foreign exchange risk has become a daily routine for banks and corporations.

Finally, in the 1990s a strong trend towards the formation of a single global financial market. It features a wide range of securities that can be traded within 24 hours in various financial centers around the world.

1990s were also marked by the rapid development of the virtual economy.