Dates for determining the securities market. How the stock market works. Certificate of securities market

Securities market is a system economic relations Between those who let and sell securities and those who buy them. This is a combination of mechanisms and actions that have to trade in securities. The concepts of the stock market and the securities market coincide.

Stocks and bods market ( stock market) there is an integral part financial market. From other sectors of the financial market (monetary, currency, banking loans and deposits), it is primarily different in its own object, but it is very similar to them and according to the method of education and the significance of the process of circulation.

The stock market is the sector of the formation of supply and proposal of securities. Demand is created by enterprises, as well as the state that lacks its own income to finance investments. Pure creditors are faces, institutions and the state.

The stock market allows you to perform and speed up the transition of capital from money to a productive form. It creates a market mechanism of free, albeit regulated, overflow of capital into the most effective industries. On the securities market there is a redistribution of capital between sectors and areas of the economy, between the territories and countries, between the various segments of the population.

The securities market is developing and moving according to their laws determined by the specifics of the so-called fictitious capital, but closely linked to the capital market. The weak part of the stock market is its acute exposure not only economic, but also political shocks. Suspension of the securities market in some cases can wear fairly tragic economic and political consequences for the country.

Stock market, being one of the components market economyhas the opportunity through their mechanisms to mobilize investment resources in order to economic growth, development of scientific and technological progress, innovation, development of new industries.

The form of the organized functioning of the securities market is the stock exchanges. Stock Exchange is an organization that has its goal of making buyers and sellers in a specially provided place. They are formed a course of securities.

IN last years The world has a tendency to reduce banking operations and expanding the scope of influence of securities in financial markets. This global process was called "Securitization".

Classification of securities markets

The securities market is a multi-line structure, so it can be classified for a large number of signs, each of which characterizes it from one side or another, or from the point of view of different relations that have a place on it.

Classification by the nature of the movement of securities

Under the movement of securities, their purchase is understood - sale, as well as other actions provided for by law leading to the change of their owner. Securities are treated on the primary and secondary stock markets.

The primary stock market is the market for the first and repeated emissions of securities, on which their initial placement among investors is carried out. Its essential function is the full disclosure of information about the issuer, allowing the investor to make a reasonable choice of the type of securities for investment. money. Important and direct investors in the primary securities market are investment and commercial banks, investment funds, companies, institutional investors who acquire directly or with the help of stock exchange firms and investment banks shares and bonds.

There are two forms of the primary securities market: private placement and public offer.
Private accommodation is characterized by the sale (exchange) of securities with a limited number of pre-known investors without a public offer and sale.
Public offer is the placement of securities at their primary emission through public announcements and sales of an unlimited number of investors.

The secondary stock market is the market on which earlier securities are addressed. This combination of any operations with these papers, as a result of which a permanent transfer of property rights on them from one owner to another is carried out. Its essential feature is liquidity, i.e. the possibility of successful and extensive trading with small fluctuations in courses and at low costs for implementation.

Secondary market Securities are divided into: organized (stock) market and unorganized (outdoor or "street") market.

Classification of stock markets at the place of treatment

Depending on the degree of concentration (concentration) of relations between issuers and investors in terms of place, time, processes, etc. The securities market is divided into stock exchange and over-the-counter.

The stock exchange market is exhausted by the concept of the Stock Exchange as a special institutional organized market, which includes the highest quality securities and the operation on which professional participants of the stock market are made.

Distinctive features of the stock market are:
- a certain time and place of trading;
- a certain circle of participants (stock market professionals);
- certain rules for the auction and subordination of participants with these rules;
- The Bid Organizer is a specific institution (an organization that has a relevant license).

On the over-the-counter market, companies are presented, whose dimensions "do not reach" to stock exchange standards (primarily in the number of shares issued and the degree of reliability). This market is characterized by the chaoticness of the process of concluding transactions of purchase - sales of securities in time and space, and in organizationally, the Outdoor Market is dispersed in the country and participants.

The basis of the over-the-counter market is a computerized communication network, on the channels of which is transmitted information about billions of quoted shares. Information about the prices of the days of the day, about the volumes of perfect transactions are regularly printed along with the data of the exchange turnover.

Classification for the presence of trade rules

From the point of view of the presence of firmly established trade rules, fixed, up to the statement by their state, the securities market has historically shared on an organized and unorganized.

The organized market is functioning on the rules required for all its participants. The concept of an organized market currently automatically includes its regulation from the state, since these rules should be necessary to be approved.

The inorganized market is functioning without rules and without state regulation. For a modern highly developed securities market, division into organized and unorganized actually outdated and stopped being relevant. Currently, the securities market in all their aspects is a greater or lesser extent an organized market, which simply do not think without the relevant rules of work on it.

Classification by type of securities

By type of securities, the stock market is divided into relatively independent markets of each individual security: stock markets, bonds, bills, etc. The securities market is any relationship related to the valuable paper, and not only trade it. Creating a security in the form of its purchase - sales may be absent due to certain reasons.

The market of a separate securities can be divided into the market of this paper itself and to the markets of the instruments dependent on it: the market of secondary securities and the market of derivative financial instruments based on urgent contracts for securities.

The secondary securities market is based on other securities. An example of secondary securities in Russian conditions, in particular, the issuer's options.

The market of derivative financial instruments on securities is the market of urgent contracts for buying - the sale of securities concluded not to valid buying them or selling, but only to obtain the difference in their market prices in time. Examples of such tools are futures and other urgent contracts.

Classification by issuers

The securities market, depending on the type of the issuer, is divided into the markets of state and corporate (non-state) securities.

The state securities market is the securities market, the issuer of which is the state represented by the relevant authorities of the state executive.

The corporate securities market is the securities market, the issuer of which are commercial organizations (corporations). In Russian practice there are no securities, the issuers of which would individuals.

Classification of stock markets by type of transactions

Depending on the type of transactions, the securities market is divided into cash and urgent, investment and speculative, cash and debt (margin), etc.

The cash market is the market of immediate execution of prisoners of transactions, while purely technically their execution can stretch for a period of up to one to three days if the safety is required in physically. On it, as a rule, traditional securities (stocks, bonds) are applied.

The urgent securities market is the market with a delayed execution of the transaction, usually for several months. On it, as a rule, contracts for derivatives are referred to.

Classification by type applying trade technologies

Depending on the trade technologies used, the following securities markets can be distinguished:
1. Markets without rules - spontaneous.
2. Markets on which only buyers compete: a simple auction market, the Dutch auction market.
3. Markets on which only sellers compete: dealership market.
4. Markets on which compete with each other both sellers and buyers: a double auction market, which is divided into on-school and continuous auction.

The elemental market is the rules for concluding transactions, requirements for securities, participants, etc. Not established, trade is carried out arbitrarily, in the private contact of the seller and the buyer. The distribution systems of information about the perfect transactions does not exist.

The simple auction market is characterized by the fact that only buyers compete on it, direct competition of sellers is missing (characteristic of underdeveloped stock exchanges and over-the-counter stock markets). In front of the auction there is a preliminary collection of applications for sale, a consolidated quotation sheet is compiled. The auction occurs through a consistent public announcement of the list of proposals, for each of which there is a vowel competition (according to a specific scheme) of buyers by appointing new prices. For the starting, the price of the seller is accepted.

With a Dutch auction, there is a preliminary accumulation of applications of buyers, which are covered by the issuer or an intermediary working in its interests. A single price is established, which is equal to the lowest price in the purchase requests, allowing to sell the entire issue. All purchases for the purchase, presented at prices above official, are satisfied at the official price.

Dealer markets. In these markets, sellers publicly announce the pricing and order of access to securities purchase places. Those of buyers who agree with the price proposals and other investment conditions declare their intentions and acquire securities. Sellers carry a duty to make deals with any face at the prices they declared. Direct open competition between sellers or between buyers does not occur.

Dealer markets are applied at:
a) primary placement of securities;
b) in tender suggestions (public offering a large investor about buying securities).

Before the start of trading in the online market, applications are accumulated on the purchase and suggestions for sale, which are then ranked on the price proposals, sequences of receipt and quantity. In this session, they are satisfied. According to certain rules, it is established official Coursewhich can satisfy the largest number of applications and suggestions. After their satisfaction, the remaining positions form a list of unrealized applications and proposals. Then the continuous auction market is engaged.

During the trading period in the continuous auction market, there is a constant flow of applications for the purchase and proposals for the sale, which are registered specifically authorized ones that are joining all the assignments of sellers and buyers. If the instruction is not possible, the applicant either changes the conditions or is set to unreadable orders. The continuous auction market is possible only with significant amounts of daily securities offers (more than 10,000 lots daily).

Classification of stock markets depending on the type of trade

The traditional and computerized securities markets are distinguished.

On the traditional stock market, sellers and buyers (usually represented by stock intermediaries) are directly found in a certain place and a public vice bargaining occurs (as in the case stock trading) Or closed auction are underway, negotiations that for any reason are not subject to broad publicity.

Computerized stock market is a variety of securities trading forms based on the use of computer networks and modern means of communication.

The securities market is also divided into cash and capital. The money market includes short-term securities (up to 1 year). In the capital market, perpetual securities or securities are treated before the repayment of which remains more than 1 year.

The sectoral stock market is the market for all types of securities that are issued by the commercial structures of the industry. For example, the securities market of metallurgical or oil companies.

According to the territorial principle, stock markets are divided into: international, national and regional.

In terms of terms, stock markets are divided into: markets for short-term, medium-term, long-term and indefinite securities.

Structure of securities market

The stock market is a complex financial and economic system, but its structure can be conditionally submitted in the following form:
1. Actually the market (stock exchange, over-the-counter).
2. Market participants (investors, issuers, intermediaries).
3. State regulation authorities.
4. Self-regulating organizations.
5. Market Infrastructure: Legal, Information, Depositary and Clearing Clearing Network, Registration Network.

Securities Market Participants

The objects of the stock market are various types of securities. Subjects (participants) of the stock market are: state, issuers, investors, intermediaries.

The issuers are legal entitiesMachining securities and supporting obligations from their own behalf to the owners of securities to implement the rights enshrined by them.

Investors are individuals and legal entities that invest in their own, borrowed or attracted funds in the form of investment in securities in order to produce profits and other positive economic results.

Financial intermediaries of the securities market - dealers, brokers, manels, etc., helping the reversal of securities and the commission of various stock operations.

State regulation authorities

State regulation The securities market is carried out in order to ensure public interests of society and the private interests of the subjects operating in the market, protect their rights and legitimate interests, the creation of uniform rules for the functioning of this type of market.

The main body of state executive Russian Federation, regulating the securities market, is the Federal Commission for the Securities Market (FKSB). FCCB:
1. Conduct state policy In the field of securities market.
2. Carries out control over the activities of professional participants in the securities market.
3. Protects investor rights, shareholders and depositors in the securities market.

An important condition for the development of the securities market is to ensure free competition and limiting monopolistic activities in this area. A special role in this is given to the Ministry of Russian Federation for Antimonopoly Policy.

Organ government controlled In the field of securities market, the Ministry of Finance of the Russian Federation is also. Its competence includes a number of issues related to the establishment of rules. accounting Operations with securities, government policies in the field of state securities emissions.

Central bank Russian Federation, although not state body The authorities have the right to implement the regulation of activities in the securities market of credit institutions. It registers issues of securities of these organizations, controls the compliance with the requirements of the legislation.

Self-regulating organizations

Self-regulating organizations of the securities market are voluntary associations of professional participants. According to Russian legal standards They can take the form of associations, trade unions and professional community organizations, while the state transmits them some of their functions.

Functions of self-regulating organizations:
- self-regulation of the activities of participants in the securities market;
- maintaining high professional standards and staff training;
- development of the infrastructure of the stock market;
- conducting joint scientific developments;
- Collective entrepreneurship in their own interests and protection of investors' interests.

All incomes of self-regulating organizations are used solely to perform authorized tasks and are not distributed among its members.

The control over the creation and activities of self-regulating organizations is carried out by the Federal Commission for the Securities Market.

There are several types of self-regulating organizations: international, national and regional.

Infstructure of the stock market

From the point of view of the internal organization, the stock market is a harmonious combination of the following elements of its infrastructure:
- legal (regulatory and legislative acts);
- information (financial press, stock indicators, stock indicators, specialized databases on securities, issuers, information agencies, Internet);
- analytical (companies specializing in the analytical processing of information about the stock market, rating agencies, companies specializing in assessing the value of securities and other assets);
- the depositary and calculated network of clearing (for public and private papers often exist separate depository clearing systems);
- Registration network.

Functions of securities markets

The stock market is an integral part of the financial market, so it performs both general market and specific functions:
1. Commercial - receiving profits.
2. Evaluation (value, measuring). Securities, gets its own market price.
3. Information.
4. Regulatory. The stock market is valid for the rules produced by them.
5. The stock market is a mechanism for attracting investments, primarily through the purchase of corporate securities.
6. Financially intermediary. Redistribution of cash resources, overflow of capital into the most effective areas of business, industry, enterprises. The stock market is a mechanism for natural selection in the economy.
7. Capital centralization is a combination of two or more capital in one common capital. This feature primarily performs the stock market.
8. Increasing the degree of capital concentration and production - an increase in capital by accumulation, i.e. Capitalization of net profit.
9. The stock market serves as a mechanism for attracting money to the state budget (mainly through government securities).

The securities market objectively competes with other areas of equity application, and therefore it depends on how attractive it is from the point of view of market participants.

Stock market or securities market (eng. Stock Market, English Equity Market) - One of the main parts of the financial market where turns around. Securities are promotions, bonds, bills, checks, investment pairs, futures and options.

The stock market is a mechanism providing cash transition from one economy sector to another.

What is the stock market?

The stock market has many applications. It uses different people with completely different goals and interests. In total, it is possible to distinguish 3 main applications:

• Business

Entrepreneurs often use the stock exchange for more efficient business. So, it is here large companies They sell their shares and bonds, if desired, a businessman can buy an option or conclude, thereby minimizing its risks from sudden oscillations to various goods. More detailed about all these securities speech will go Further.

• Investments

The most traditional participants in the stock market are investors. They acquire securities that entrepreneurs sell, with the aim of earning it. The investor puts the goal to profitably invest money and get profit in the future. As a rule, it makes long-term investment and do not count on too much profit. A rare investor boasts income more than 50% of the invested funds for the month. Of course, this concerns only investors on the Stock Exchange, other methods can bring greater income, of course, at high risks.

• Speculation

At the moment, the overwhelming majority of participants on the stock exchange are speculators. They seek to buy a certain asset cheaper, and sell it more expensive, making it on the dynamics. Unlike investors, speculators are not interested in securities payments (dividends, interest), their interest is the dynamics of the course. At the same time, the speculator can earn significantly more than an investor, but at the same time he has an increased risk. To earn money, he needs to properly predict where the course will move in the future, after which it is inserted into the appropriate asset and try on it to earn.

Who is a participant in the stock market?

Participants in the stock market are:

• Issuers - those who produce (produces) to the securities market;
• Investors are securities buyers;
• Professional market participants are individuals and companies for which trade in the stock market is professional activities (Dealers, brokers, traders, etc.).

What types of stock markets are there?

Stock markets There are many different classifications: by the nature of the placement of the Central Bank, in the form of an organization (stock exchange, over-the-counter), by types of securities, by territorial sign, by type of transactions, etc.

By the nature of the placement of securities there are:

• primary stock markets that are engaged in the placement of only new Central Bank;
• secondary - engaged by the placement of securities that have already been in circulation, the third and fourth markets.

The concept of the secondary stock market is closely connected stock Exchange, after all, investors speculating on it. Stock Exchange - This is an organization, the subject of activity of which is to ensure the normal and legally correct circulation of securities, as well as determining their market value.

Stock markets can also be divided into several varieties and on some other criteria:

• according to issuers - the market of state securities, the securities market of private companies, etc.
• by territorial sign - the international market, the national market, the regional market;
• by types of the proposed and purchased securities - stock market, bonds, futures and other derivatives of securities, etc.;
• on stock exchange criteria - stock exchange and outdoor market;
• for the term - the market of short-term, medium-term, long-term and indefinite securities;
• by industries and some other parameters.

What are stock market indices?

The stock market index is a tool that gives an idea of \u200b\u200bthe overall state of prices in the stock market, in other words, it shows where the market is generally moving.

The stock market index is calculated on the basis of a certain number of shares - in different indices there can be a different number of components of its securities, some is based on 10 securities, and some 500 or more. And the different indices of the same market make it possible to assess it from different sides.

The world stock exchanges drawn a huge number of stocks, but in order to understand how the stock market of any foreign state was sold in general, it is used by the corresponding stock exchange index that shows the average value of the movement of a large number of shares appearing on this exchange (instead of To view the trading result for each individual paper).

Is there a stock market in Russia?

On the Russian scene, the key players are the Russian trading system (RTS).

MICEX is mainly traded by shares, and on RTS mainly futures and options.

How is the Russian stock market governed?

The basic document enshrining the basics of securities legislation is Civil Code RF, defining the concept of securities, their types, requirements for them, subjects of rights enshrined by the security, general order Transmission and implementation of rights on securities, features of fixation of rights arising from non-documentary securities and their appeals.

The main special act defining the device and regulating the stock market is the federal law "On the securities market". That Federal law Relations arising from emission and circulation of emission securities are regulated independently of the issuer's type, as well as the features of the creation and activities of professional participants in the securities market.

How to trade in the stock market?

The most important link in the stock market is the organizer of trading, thanks to which, in fact, the purchase and sale of securities occurs. Typically, the Bidded organizer is the stock exchange. As a rule, the stock exchanges are not needed by premises: now trade shares are conducted in electronic form.

Private investors do not have direct access to the stock market. Trade is carried out professional participant Market securities - broker.

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The securities market is a set of transactions on the purchase and sale of official securities, which are financial instruments, in order to invest cash and profit. The most common among securities can be called shares. These are securities indicating the ownership of some share in a certain organization. Popularities are also popular, indicating the right to receive them by the owner of some amount in the future, and a certain income through fixed time intervals. Selling its shares of the company attract additional capital necessary to them to ensure their livelihoods. The one who acquires shares is entitled to part of the income and property of the company released. Despite the fact that the cost of securities is not constant, and it depends very much on the opinion of market participants, stocks remain one of the main investment methods, and are often used as an indicator of the overall state of the economy.

Shares and bonds in the securities market

When companies need money to carry out their plans, one of the ways to produce the necessary capital is the section of the property belonging to the part, and the representation of each part in the form of a promotion. Then companies sell their shares, and on the revenue money develops new products, buy buildings, equipment, etc. Also companies produce papers called Bond. The bond gives the right to its owner to receive a certain amount of money from the company that has released it. People who acquire shares and bonds are called investors. Due to the close relationship of concepts, many newcomers in the securities market use the words "action" and "bond", as well as the "shareholder" and "investor" interchangeably, that of course is an error.

As owners of a certain share in the company, shareholders are entitled to a certain percentage of it material values and revenues from business activities, i.e. are beneficiaries (beneficiaries) of this company. Investors hope that the company whose shares they bought will flourish, because With the growth of the company's income will increase and the cost of its shares, and, accordingly, income of investors will increase. In most cases, the main purpose of each investor is to purchase a shares at a low price and its subsequent sale at higher. Shares are ordinary and privileged. At the time of buying ordinary shares Their holders tend to have the right to vote in solving issues related to the company's activities. One ordinary share equals the right of one vote. Owners of such shares receive from the company quarterly and annual reportsallowing them to evaluate it financial condition. Preferred shares do not provide votes, but many investors love them for allowing larger percentage from the income and material values \u200b\u200bof the company, and in the case of bankruptcy of the company, and the elimination of its property, holders preferred shares They have a priority before the holders of ordinary shares for paying them.

Functions performed by the securities market

In the simplest description, the securities market provides organized interaction of companies with potential investors who want to acquire shares, and thus become co-owners of a commercial enterprise. When the company wants to sell its shares, it is registered on the Stock Exchange, which is the organizer of operations related to the purchase and sale of securities. In order to register on the stock exchange, the company must go through a rather complicated verification procedure and comply with the requirements of the Exchange. Compliance with these conditions allows investors to relate to the company as a less risky enterprise. Shares such companies are sold better than those traded on the over-the-counter market. The New York Stock Exchange and the National Association of Fund Dealers are the most famous worldwide trading platforms, and the most popular stock exchanges.

Securities purchase and sale process

With the interest of the investor in the purchase or sale of securities, it binds to the exchange broker, which is an employee of a company eligible for trading operations on the stock exchange. The broker sends a request to the appropriate stock and receives a certain fee for its services, and a company representative whose securities want to acquire or sell, executes this request. In the past, the trading platform on the stock exchange was a premises where every day stock brokers were met personally, and carried out the sale and sale of securities. Today electronic uses are much more often used. shopping groundswhere the purchase and sale of securities is carried out using a computer, Internet and telephone.

The erroneous opinion is quite widespread that in order to become a participant in the bidding in the securities market, the investor must have large amount money. In fact, the investor needs only to take into account and compare potential profits, with the Commission, which he will pay for the transaction. There are many shares with a relatively low price that bring good profits with long-term investment in them. Due to the fact that brokers receive their commission for each fulfilled order, they are interested in carrying out a purchase and sale of a relatively small number of securities, because A small amount is much easier to buy or sell, and accordingly, to carry out a greater number of operations for which they will receive a fee. In addition to the sole acquisitions of securities, a large number of investors sends their funds in the so-called mutual investment funds (mutual mutages), which allows them to invest together with other participants in the securities market, and buy more expensive shares and more.

The cost of shares in the securities market

Initially, the share price is determined at the time of the company in the primary placement of its shares on the stock exchange. This event is the English Abbreviation "IPO" (Initial Public Offering - Primary Public Proposal of Securities). In the primary placement, the Bank engaged in the organization of this procedure on the stock exchange uses various methods and formulas to assess the value of the company. Then, the resulting amount is divided into the number of shares, which is planned for release. So the initial price of one share is formed. After that, the cost of the company's share is more dependent on the overall view of the participants in the securities market. Based on the principle of demand and suggestions, if the market participants believe that the company does not go in the best way, they do not want to buy the shares of this company, and the demand for them falls, reducing the value of shares. And on the contrary, if the opinion of the participants of the market is such that the company is well and successfully developing, and expect to obtain good profits, on some of which holders of its shares can also be calculated, the interest of investors to such securities increases, which leads to an increase in demand for promotions and their cost.

Bulls and bears in the securities market

If someone from the participants believes that the value of the shares will decline, they say that he prevails "bearish" the mood, and it is very careful about the purchase of such securities. Participants who believe that the cost of shares will grow, are called investors with a "bullish" mood, and they tend to buy securities in large volumes. Similarly, the securities market itself, having a tendency to increase, is called the "Bulls Market", and the incident market is called the "Bear Market".

Formation of securities portfolio

A person has many options for investing their money. He can invest them in real estate, put on a savings account in the bank, transfer to pension Fund, or transfer them to the Trust Management Foundation. Another option is to acquire securities. Traditionally, in terms of profitability, securities exceeded other investment tools and most financial experts consider securities to be an important part in the formation of an investment portfolio, calling for investors to regularly participate in trade on the stock exchange.

Despite the fact that experts are not always unanimous in the matter, and from what securities it is best to form a portfolio, they, as a rule, always advise to buy stocks as much as possible a variety of companies. Following this advice reduces the risks of large financial lossesbecause If some company go bankrupt, the investor will remain securities of other companies, the profits on which will cover losses associated with the first. Some investors develop this topic even wider, arguing that the purchase of shares of different companies is not a sufficient condition for the security of financial investments, and it is necessary to form a portfolio of securities with reference to various sectors of the economy, because Of all sorts of interruptions and disagreements often shake the entire sector entirely.

Securities market as an economy health indicator

To some extent, the securities market shows the general state of the economy. In most cases, the value of shares is reduced when the economy is experiencing any difficulties, because When lacking financial means The population is not inclined to acquire any securities, and concentrates on essential spending, such as food or mortgage payments. Accordingly, with a lack of demand for stocks, the cost of them decreases. Also, the decline in prices for shares of companies is generally due to the fact that the business activity of many of them is very interrelated. For example, the relationship between computers and microprocessor manufacturers to them. When the company has been suffering from any products, the company producer of this product also receives its portion of difficulties. And vice versa, in the case when the securities market demonstrates a tendency to increase shares, this means that the population has free money that they are ready to invest, and given the relationship between supply and suggestion, it can be concluded that high activity in the valuable market Paper indicates a good state of the economy.

- This is the scope of economic relations associated with the release and circulation of securities. His goal is to accumulate financial resources and ensuring the possibility of their redistribution by making market participants a variety of operations with securities, i.e. In the implementation of mediation in the movement of temporarily free cash from investors to issuers of securities.

Classification of securities markets

There are various classification features of the securities market.

By Territorial principle The securities market is divided into international, regional, national and local.

From time and method of receipt of securities in circulation:

• primary;
• secondary.

Primary - This is the market that serves release (emissions) and the primary placement of securities.

Secondary - This is a market where previously issued securities is made, purchase and sale or other forms of the transition of the security from one owner to another during the entire period of the existence of the security is carried out. Here, in the process of buying and selling an asset, its valid course is determined, i.e. A quote of the securities course is produced.

Types of securities markets depending on the degree of organizedness:

• organized;
• unorganized.

Organized market - This is the appeal of securities based on legislative rules between licensed professional intermediaries.

Unorganized market - This circulation of securities without complying with uniform rules; This is the market where the rules for concluding transactions, requirements for securities, to participants, etc. Not installed, trade is carried out arbitrarily, in the private contact of the seller and the buyer. The distribution systems of information about the perfect transactions does not exist.

Types of securities markets depending from the place of trade:

• stock exchange;
• outdoor.

Stock market - This is a market organized by the stock (futures, stock sections of currency and commodity) exchanges and brokerage (broker) and dealerships.

Outstanding Market - The sphere of the appeal of securities not allowed to quotes on stock exchanges. The over-the-counter market is engaged in the circulation of securities of those joint stock companieswhich do not have enough shares or income in order to register (underline listing) their shares on any stock exchange and be admitted to trading on it. It can be organized and unorganized. The organized over-the-counter market is formed by stock shops, banks, as well as dealers, which may or not be members of the Exchange, investment companies, investment funds, departments of banks, etc.

By species of transactions The securities market is divided into cash and urgent.

Cash market (Cache Market, Spot Market) is the market with immediate execution of transactions within 1-2 business days, not counting the day of the transaction.

Urgent market (forward) is the market on which a variety of transactions are concluded with a period of execution exceeding two working days.

By Fashion trading Highlight next species securities markets:

• traditional;
• computerized.

Trade on Computerized market Passed through computer networks that combine the respective stock intermediaries. Characteristic features This market is:

• lack of physical location where sellers and buyers are found, and, therefore, direct contact between them;
• full automation of the trade process and its maintenance; The role of market participants is reduced mainly only to the commissioning of its applications for the sale and sale of securities in the trading system.

Trade on traditional market It is carried out directly on the stock market itself between sellers and securities buyers.

By Emitters and investors The securities market is divided into markets: state securities, municipal securities, corporate securities, securities issued (purchased by individuals).

By Specific types of securities There are bonds, bills, and so on.

In addition, the securities market is divided into sectoral, territorial and other criteria.

The popularity of the securities market is due to incredible stories about super-profits and investment giants, but few people really understand what the stock market is. They only see the external gloss, not aware of how the mechanism works and what is his goal. In this article we will look at what the stock market is and how to work with it.

What is the stock market with simple words

Stock market - this is market systemIn which the turnover of securities between buyers and sellers takes place.

Wikipedia says that the stock market is a combination of economic relations in terms of production, as well as the appeal of securities between its participants.

As a result, stock market simple words - This is the place where they buy and sell shares. In theory, such a market is not enough than different from the food or any other market, only securities act here, and not apples.

The essence of the stock market is, it allows companies to attract investments due to the issue of securities, and investors make profits from ownership of shares. It is also an integral part of the economy of any country, giving the opportunity to develop the infrastructure and well-being of people.

What is sold in the stock market

As mentioned above, securities turn on the stock market, but they can be different. The following assets of the stock market are distinguished:

• Ordinary shares - The most common type of asset, which is a share owned by the Company with the right to receive dividends and participation in the shareholders meeting.
• Preference shares - on the Exchange Jargon "Prefa", they allow you to receive fixed income from dividends, but limit the rights to participate in the shareholders meeting.
• Bonds- It is essentially a long-to-date receipt that gives the right to receive it. nominal value With percentage after a certain period. May be state, corporate or municipal.

Thus, the stock market sells various types of shares and bonds. Notes are not implemented in centralized sites, and transferred personally from the debtor to the lender. Derivatives of assets (futures, options) are turned on an derivative market, which is actually not part of the stock.

Securities Market Participants

To fully present the mechanism of the market, you should also pay attention to its participants:

• issuers;
• investors;
• mediators;
• participants in the mechanism of the Exchange.

Companies that produce their shares on the stock exchange are as issuers. Primary emission of papers is called an IPO. Due to this, the issuer receives investment to develop its business and company profits.

Investors are understood by several categories of participants.:

• Private (individuals). Regardless of capital, it can be both large investors and small traders.
• Corporate (organizations and legal entities). Additionally, it can be noted collective (mutual and investment funds, pension, insurance organizations).
• State ( municipal members) . The state has a significant share of shares in various companies.

Brokerage companies are speaking as intermediaries. They allow you to access the market to investors.

Participants in the mechanism of exchange:

• Dealers(marketers) - create liquidity in the market and assumes to the quotation of instruments;
• Depositary- accounting of securities and stored certificates;
• Register holders- Registries of securities under an agreement with the issuer are conducted.

As a result, as in any market, there are personnel organizing trading and allowing operations, as well as intermediaries. Instead of the manufacturer of any product stands for the issuer of shares. The main participants (buyers and sellers) are investors, it is they who form demand and a proposal, as a result, and the price.

What are stock markets

Depending on the nature of the movement of securities, it is distinguished:

• Primary market - only for the first time released securities as a result of an IPO are also referred to, in the future, paper is moving to the secondary market;
• Secondary market- The main turnover of securities occurs in this market, which have already passed the IPO and secured on the stock exchange;
• Third market - Outstanding market that covers trade in papers that have not passed listing, i.e. not registered on the stock exchange;
• Fourth market - There are large packages of stocks between institutional investors, private persons are not here.

According to the territorial sign, there are stock markets:

• Russia;
• UK;
• Japan;
• China and many other countries.

There are quite a few different classifications, but they are not the most important for the investor and its understanding of the exchange structure.

How to go to the stock market

In order to start trade in the stock market, it is enough to register the score from a broker. It should be borne in mind that real transactions are opened only by licensed brokerage companies.

To open the account, it is enough to have a passport. The process itself can be performed remotely ( on the Internet). After passing a procedure for opening an account, you need to install a special terminal on the computer to open transactions. All transactions will be held in it.

On the screen below the trading platform of an experienced broker, with which we have been working for a long time. To open a deal on the purchase of shares, In our example Yandex , just specify the size of the lot and click on the button BUY.:

The next day he was noticeable:

To get the money to our account, you need to sell stock back, that is, to close the deal and fix profits:

The results of the transaction are displayed immediately under the schedule:

You can find a huge number of most famous companies from around the world. The minimum deposit to start work $ 250, but we recommend not paying attention to this figure and start at least 300 USD, because according to the rules of risk management, the transaction should be opened at least 10% of the deposit amount. You can also buy shares of several companies and do not risk it so much.

Conclusion

The stock market is a market system in which securities are turned around (stocks, bonds). It allows issuers to receive investments, and investors earn money on the ownership of companies. The third party in the market is intermediaries (brokers), as well as participants in the exchange mechanism (dealers, depositories, etc.). Trade in the stock market requires an open account at a broker with a license, as well as a deposit for the purchase of securities.

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