What is the securities market: the concept and structure of RZB. Types of securities markets What is the securities market

The securities market (in other words, the stock market) is an organized market, part of the financial market (in addition to bank loans), in which securities are bought and sold. The main participants in the stock market are companies (issuers) that issue securities and individuals (investors) who buy them.

1. Financial instruments of the stock market

Most companies start their existence at the expense of their own funds or the money of the founders. At the initial stage of development, the company's own funds are quite enough, however, for further development, the company needs to expand production, for example, buy new equipment, launch a new service, make a PR company. The company does not have enough income, so at the initial stage, the company can apply to the bank and take a loan. This is one of the simplest, but at the same time, expensive ways of borrowing for a company. Since the bank gives rather limited amounts of money and at high interest rates from 20 to 25% per annum. First of all, this is due to the fact that the bank evaluates only the company's tangible assets (office, machine or computer), as a rule, banks do not evaluate intangible assets.

In addition to bank loans at the initial level, a company can resort to private borrowing of financial resources using such an instrument as a bill of exchange. The bill for the company will be the same borrowing as a bank loan, except that the bill can be sold to almost anyone. That is, by issuing a bill, a company can receive money from a private investor at a lower interest rate than a bank loan. This percentage can range from 14 to 24%.

Of course, both credit and promissory notes are not entirely profitable for the company for the following reasons:

• the amount of borrowed funds is very limited, approximately 100 million rubles;
• high interest rates;
• when evaluating a company, creditors do not evaluate intangible assets.

Advantages of credit and oar borrowing:

• in order to obtain loans from a bank and place its bills, a company can be organized in the form of ownership of a limited liability company (LLC);
• the company may not have a credit history.

Working with bank and promissory notes, the company begins to acquire a positive credit history, which can allow you to switch to cheaper types of loans and receive money. As soon as the company has a positive credit history and the financial community begins to “trust” the company, the organization can proceed to bond issues by issuing bonds to the market. In this case, the bond, although it is a debt instrument, like a bill, however, it has a number of key and distinctive points:

• a bond is an issue paper (when issuing a bond, it must undergo mandatory registration with the Federal Financial Markets Service), but a bill of exchange does not;
• Bonds are traded on the stock market, while promissory notes are not.

Due to the fact that the bond is subject to strict control of the Federal Service for Financial Markets (FSFM), it gets the opportunity to enter the organized market, i.e. to the stock exchange. According to these securities, high guarantees of reliability are established for potential investors. Due to the fact that the security will be traded on the stock exchange, the company has the opportunity to attract large financial resources among a vast number of investors. This she could not afford, working with promissory notes. If a company already has a credit history on bills and loans, it can offer its bonds at relatively low rates of return for investors. The decrease in bond yields is based on the fact that the investor has a certain confidence in the return of funds after the sale of the bonds of this company due to the high level of reliability of the organization.

The main indicator of work in the credit (debt) market is the annual yield, whether it is a bank loan, a bill or a bond, which, in turn, directly depends on the reliability of the company. For example, a company issuing a bond has a yield of about 6-7% per year. Will an investor buy it if he can put his money in the bank without risk at a higher interest rate and with a higher yield? No, because a potential investor wants to earn more than in a bank, and the company will be forced to increase its yield percentage to about 11-12% per annum in order to interest the investor and buy its bonds. If the company is well known, reliable. and has an impeccable credit history, the percentage yield on its bonds can be approximately equal to the yield in the bank. If the company is little known and its credit history is not extensive, then the company, in search of investors, will have to raise rates of return and make them much higher than in a bank.

Figure 1. Selecting a source of borrowing funds for the company.

In addition to debt instruments, to raise funds, a company can also use equity instruments, that is, issue (in other words, sell) its shares. By selling its shares, the company, as well as in the case of the sale of bonds, raises money. But a bond is a debt that must be repaid (returned), and a share is a part of a company that gives the right to manage the company and the right to receive part of its income. The downside of being able to manage a company's activities by buying its shares is that we do not receive a guaranteed income from the sale of shares, unlike the sale of bonds. The positive side of issuing shares is that the company receives cash that does not need to be returned (selling shares is not a debt). The negative side is that by selling shares, the owners of the company lose part of their control over the activities of the organization. Because the investor who bought the shares, in the first place, has the right to manage the company, in accordance with his share of the shares.

2. Types of the stock market

2.1. primary market

Having decided to issue shares, the company, in most cases, turns to a professional participant - an underwriter who takes care of all issues related to the placement (sale) of shares:

1. Preparation of financial statements.
2. Preparation of high-quality corporate governance.
3. Deal structure development.
4. Company valuation.
5. Placement of shares of the company.

An underwriter is an intermediary between a company (an issuer of securities) and a potential investor.

Figure 2. The structure of interaction between the issuing company and the investor through the underwriter.

The market where IPOs take place is called the primary market. The peculiarity of this market is that only on it the company (issuer) receives money for its shares, on the other (secondary market) the company will not receive money.

2.2. Secondary market

The secondary market is a market in which a share or other security is resold by participants in this market. The secondary market is both exchange and over-the-counter. In the exchange secondary market, transactions for the sale and purchase of securities take place in specially equipped places - exchanges. In the over-the-counter market, buying and selling is carried out either from hand to hand, bypassing all intermediaries, or through a broker company. On the exchange, due to the large number of participants, the price is considered fair (market), on the over-the-counter market, the price is determined only by mutual agreement directly between the buyer and the seller. It is important to note that as soon as a share has entered the secondary market, the company that issued it no longer receives funds, regardless of the increase or decrease in its market value.

Figure 3.1. An example of a change in a company's shares.

When a company has shares and they are traded on the stock exchange, the company has real value. The value of all the company's shares constitute its real value. So, at a price per share of 50 rubles, the entire company is worth 5,000 rubles. This figure is obtained by multiplying 100 shares (the number of all shares in the company) by the exchange price of one share of 50 rubles. Now, having such a value, the company can quite easily attract bond and bill loans for much larger amounts of money, namely 5,000 rubles, when a year ago it could only 1,000 rubles.

Suppose that after another year, the price of the company's shares on the stock exchange rose to 100 rubles.

Figure 3.2. An example of a change in the company's shares after a year of operation.

The company, in this case, may proceed with the procedure for an additional issue of securities (sell 5 more shares). The company again turns to the underwriter and offers him 5 shares at a price of 95 rubles per share. As a rule, the price is set just below the exchange price in order to enable the underwriter to earn some money, and there was a chance to immediately sell the entire block of shares. As a result of such a transaction (an additional placement of shares), the company acquired 475 rubles, having sold only 5 shares! If the company, during the initial offering, immediately sold 10 shares at a price of 10 rubles, then it would receive only 100 rubles. Many Western and domestic companies work this way. The most striking example was the procedure for an additional placement of Sberbank shares in 2007. At the current exchange price of 91,300 rubles per share, the share price at the additional placement was 89,000 rubles (see Figure 3.3).

Figure 3.3. Sberbank share price chart.

4. Bond

A bond is a debt equity security that reflects a loan relationship between an investor and an issuer. Investors who purchase bonds are lenders. Issuers are enterprises, banks, government bodies that issue bonds. They are borrowers. Currently, bonds as a financial instrument are very widespread. According to experts, the global bond market is more than 36 trillion. US dollars. And surpasses the stock market in its volume. Three countries (USA, Japan, Germany) account for more than 70% of the global bond market. The market for debt financial instruments is developing rapidly. Over the past four years, it has increased by more than 30%.

Most investment banks and securities companies are active in the bond market. And this is not surprising, since more than 90% of the value of securities worldwide are bonds. Bonds are loan agreements based on securities for which there is no single lender, but a number of lenders lending their funds to a single borrower. A special feature of most bonds is that they offer a fixed-rate coupon, which yields a pre-determined annual rate of return. Since loan agreements have a fixed term, most bonds will be redeemable or term bonds, ie, there will be a maturity date (to repay the principal amount of the debt).

4.1. corporate bond

The main question to ask when buying corporate bonds is for what purpose does the company need the funds? To make a more informed decision on the purchase of corporate bonds, it is recommended to get answers to the following questions:

• Will these funds generate a return sufficient to pay interest and repay the principal at the agreed time within the repayment schedule?
• What assets will be provided as collateral for the loan?
• Does the borrower have the right to use these assets as collateral (i.e., are they not collateral for some other loan)?
• How has the company performed over the past three financial years?
• What is the ratio between current debt and equity before and after the loan in question?
• How much can the company's annual profit fall to keep the company in a position to continue servicing its debt?
• How much loss could the company sustain and still service the principal on the proposed loan?
• Is the system of protection of non-shareholders, i.e. creditors, sufficiently effective?

The main buyers of bonds are:

• banks;
• pension funds;
• Insurance companies;
• mutual funds.

Like many other securities, a bond can generate income in two ways:

• in the form of an interest rate (coupon) on a loan, which in most cases is a fixed annual amount that is paid either every six months or once at the end of the year;
• as the difference between the purchase price of the bond and the price at which the investor sells the bond (which may be the redemption amount of the dated bond), or a discount.

Issuers issue a variety of types and types of bonds, each of which has specific properties. Therefore, an investor must know the properties of each type of bond well enough to make informed decisions when buying specific bonds. According to the method of providing bonds with specific property of the company, bonds are divided into mortgages and non-mortgages.

4.2. secured bond

Secured (mortgage) bonds are issued by an enterprise on the security of specific property available at this enterprise (buildings, machinery, equipment, etc.).

There are several types of secured bonds. Mortgage bonds are bonds issued against the security of land or real estate. These bonds are the most reliable, as they do not lose value over time. Therefore, by mortgaging real estate, a company can attract financial resources in an amount close to the value of the pledge.

For bonds with variable (floating) pledge, machinery, equipment, and materials act as collateral. The term "variable" (floating) pledge emphasizes that the value of property is subject to more serious fluctuations than land or real estate. Bonds secured by securities are secured by shares, bonds and other securities owned by the issuer. The value of collateral is determined by the market price of these securities. Depending on the quality of pledged securities, the amount for which bonds can be issued is determined.

Since this instrument is a "high quality" debt instrument, the company is required to use the profit for each year (or its equity) to pay for this type of bond before the claims of other creditors are satisfied.

4.3. unsecured bond

Unsecured (unsecured) bonds are direct debt obligations of a company that are not secured by any collateral.
Claims of owners of unsecured bonds are fulfilled in the general manner along with the claims of other creditors. The actual security of such bonds is the general solvency of the company. As a rule, large and well-known companies with a high rating and a good credit history resort to issuing unsecured bonds. The name of these companies already serves as a guarantor of the return of funds.

4.4. Convertible secured or unsecured bond

Convertible unsecured bonds are similar to those described above, with the only difference being that these bonds may be converted at some point in the future into equity instruments.

The most famous (if not the only) example of the issue of corporate convertible bonds are the convertible bonds of JSC Oil Company Lukoil.

The purpose of the issue was to attract investments for the technical reconstruction of the JSC's subsidiaries and pay off their debt to the federal budget.

From the point of view of the issuing company, the conversion can be seen as an advantage, since it no longer has to worry about repaying the loan. However, since the conversion only occurs when the equity yield is equal to or higher than the bond yield, this would mean that the company would have to pay a dividend on these new shares that would be higher than the current bond interest rate.

4.5. coupon bond

Coupon bonds can be issued with a fixed interest rate, the income on which is paid constantly in the same amount throughout the entire period of circulation of the bond.

The establishment of a fixed interest rate is possible in a stable economy, when price and interest rate fluctuations are very small. In the context of high and rapidly changing interest rates, the establishment of a fixed nominal yield is fraught with a high risk for the issuer. When interest rates are reduced, the issuer must pay investors income at the rate fixed when the bonds were issued.

Therefore, in order to avoid interest rate risk, issuers resort to issuing bonds with a floating interest rate. This type of bonds became widespread in the United States in the early 80s, when interest rates were quite high and had a tendency to change. Under these conditions, companies preferred to issue bonds with a floating interest rate tied to some indicator that reflects the real situation on the financial market. Typically in the US, floating-rate bonds are pegged to the yield on three-month Treasury bills. When issuing such bonds, an interest rate is set for the first three months, and then every three months the rate is adjusted depending on the yield on treasury bills. The real interest rate on the bonds of a particular company consists of two components:

• interest rates on treasury bills;
• additional risk premium.

4.6. income bond

Income bonds are a special type. The firm is obligated to pay interest on these bonds to holders only if it makes a profit. If there is no profit, then the income is not paid. Income bonds can be simple and cumulative. For ordinary bonds, the company is not obliged to reimburse the unpaid income for previous years in subsequent periods, even if there is a sufficiently large profit. For cumulative bonds, interest income not paid due to lack of profit is accumulated and paid in subsequent years.

4.7. Indexed bond

Indexed bonds are issued to protect the investor from the depreciation of bonds due to inflation, changes in the exchange rate, etc. A distinctive feature of indexed bonds is that the amount of coupon payments and the nominal value of bonds are adjusted by a special coefficient that reflects the change in the corresponding indicator (inflation rate, exchange rate dynamics, etc.). Indexed bonds first appeared in the 1970s in the UK. These years were characterized by unstable rates of economic development and relatively high inflation. In order to protect investors' funds from depreciation, the British government issued index-linked bonds, on which the amount of coupon payments and the nominal value of the bond was adjusted depending on the rate of inflation.

In Russia, indexed bonds were issued by some companies to remove the problem of foreign exchange risk. An investor, buying a bond for rubles, assumes the risk of depreciation of the national currency. Having held the bond until the expiration date, upon redemption, he will receive an amount in rubles equal to the face value. If during this time the dollar exchange rate rises significantly, then the real return for the investor may turn out to be a negative value. Therefore, in order to successfully place bonds, enterprises must offer a financial instrument that would protect ruble bond holders from ruble depreciation against the dollar.

4.8. Callable bond

By issuing bonds with a fixed coupon rate for a long period of time, the issuer bears the interest rate risk associated with lower interest rates in the future. In order to insure themselves against losses when paying fixed coupon income in the face of falling interest rates, companies resort to early redemption of their bonds. The right to early redemption means that the company can redeem the bonds before the expiration of the officially established maturity date of the bonds. In order to carry out such transactions, the terms of the bond issue must stipulate the company's right to early redemption. Russian law allows early redemption of bonds. However, unlike in Western countries, early redemption of bonds in Russia is possible only at the request of their owners.

4.9. Bond with partial early redemption

By issuing bonds with a one-time maturity, the issuer will have to raise a significant amount of cash on the maturity date to pay investors the face value of all bonds to be redeemed. To reduce the burden of lump-sum payments, businesses resort to issuing bonds, which are redeemed gradually over a period of time. In this case, the company simultaneously with the coupon payment repays part of the nominal value of the bond.

4.10. international bond

Some companies believe that the currencies of international markets are more attractive to investors than the currency with which they work in the domestic bond market. Accordingly, they can issue bonds on the foreign market in the currency of that country. Each country in which such issues are made tends to assign national names to such issues. The three main countries are:

• the US, where non-US issuers issue dollar bonds called "Yankees";
• Japan, where non-new bonds of a non-Japanese issuer are called "Samurai";
• United Kingdom, where sterling bonds of non-UK issuers are called "Bulldogs".

Various types of bonds are traded on world markets. Basically, two groups can be distinguished among them: foreign and Eurobonds.
A foreign bond is a bond issued by a foreign company in the market of another country in the currency of that country. The most attractive markets for issuers are the US, UK and Japan, where colossal financial resources are concentrated. If an issuer from another country wants to raise capital in the US market, then it issues bonds in US dollars, registers a prospectus in accordance with US law and places bonds in the US market.

Eurobonds are bonds that are simultaneously placed on the markets of several European countries. The Eurobond market took shape in the 1960s and 1970s and gained great popularity among both issuers and investors. A distinctive feature of the Eurobond market is that the issuers are reliable borrowers whose reputation and creditworthiness are beyond doubt.

4.11. government bond

The issue of government securities is aimed at solving the following tasks:

• covering the permanent deficit of the state budget;
• covering short-term cash gaps in the budget due to uneven tax receipts and expenditures;
• attraction of resources for the implementation of large-scale projects;
• attraction of resources to cover targeted government spending;
• raising funds to pay off debts on other government securities;

Therefore, depending on the purpose of the release, there are:

• Debt securities to cover the permanent deficit of the state budget, which is carried over from year to year. As a rule, medium-term and long-term securities are issued for this very purpose and serve the systematic debt of the state.
• Securities to cover temporary budget deficits (cash gaps), which are formed in connection with a certain cyclicality of tax receipts and fixed expenditures from the budget.
• Target bonds issued for the implementation of specific projects. For example.

Examples of target bonds issue:

• In the UK, the government issued transport bonds, as a result of which resources were generated for the nationalization of transport.
• In Japan, government issues of construction bonds are widely practiced for the implementation of large-scale road construction programs.
• In Russia, bonds of High-Speed ​​Railways JSC, which were issued under the guarantee of the Russian government, can be considered as such securities, the proceeds from the sale of these bonds were used to finance the construction of the Moscow-St. Petersburg railway.

Securities intended to cover the state debt by enterprises and organizations were widely used in Russia in conditions of systematic non-payments, when enterprises did not pay to the budget, and the government could not pay off state orders. To solve this problem, the Ministry of Finance of the Russian Federation in 1994 - 1996 issued treasury bills, executed on the state order and financed from the federal budget. The state in the stock market is not only the largest issuer, accumulating funds from private corporate investors to cover general government spending, but also the largest operator of the stock market.

Russian government securities include:

• state short-term obligations (GKO);
• state long-term obligations (GDO);
• bonds of an internal currency loan (OVVZ);
• short-term liabilities (KO);
• federal loan bonds (OFZ);
• bonds of the state republican internal 30-year loan of the RSFSR in 1991 (GDO).

5. Promotion

A share is an issuance security that secures the rights of its owner (shareholder) to receive a part of the profit of a joint-stock company in the form of dividends, to participate in the management of a joint-stock company and to a part of the property remaining after its liquidation. A share is a registered security.

It follows from the definition that as soon as you buy a share, you immediately become the owner of this enterprise. This gives you the right to receive profits (dividends), and the right to manage this company (become a shareholder). But in practice it looks a little different. For example, if you bought one share of Norilsk Nickel for 5,000 rubles, then your vote at the shareholders' meeting and the amount of dividends will be very small. Since Norilsk Nickel has millions of shares, and you have only one, which is one millionth of a percent of the enterprise. Such shareholders are commonly referred to as minority shareholders.

Shares are ordinary and preferred.

5.1. ordinary share

Ordinary shares give the right to participate in the management of the company, when 1 share corresponds to one vote at the meeting of shareholders, with the exception of cumulative voting and participate in the distribution of profits of the joint-stock company. The source of payment of dividends on ordinary shares is the net profit of the joint-stock company. The amount of dividends is determined by the board of directors of the enterprise and recommended to the general meeting of shareholders, which can only reduce the amount of dividends relative to that recommended by the board of directors.

5.2. preferred share

Preferred shares may impose restrictions on participation in management, and may also give additional rights in management (not necessarily), but bring permanent (often fixed as a certain percentage of accounting net income or in absolute monetary terms) dividends. As a rule, in Russia there are significant restrictions on participation in the management of companies, which is caused by the fact that the mass privatization of enterprises according to types 2 and 3 provided for the transfer of Preferred shares to the labor collective, while depriving them of the right to vote at shareholders' meetings.

Dividends on preferred shares are paid in accordance with the company's charter, both from profits and from other sources. Currently, under Russian law, if dividends are not paid on preferred shares, they provide shareholders with the right to vote at the general meeting of shareholders (with the exception of cumulative preferred shares).

When you buy preferred shares, you are guaranteed to receive dividends, but you cannot vote at the shareholders' meeting. And when buying ordinary shares, you can vote, but the amount of dividends is not known. To designate preferred and ordinary shares, the prefix “ap” and “ao” are used, respectively: Rostelecom-ap and Rostelecom-ao. In practice, the prices of such shares can vary greatly, for example: Sberbank-JSC costs 109 rubles per ordinary share, and Sberbank-ap costs 77 rubles per preferred share. From a speculative point of view, this does not matter, since the prices for these shares will behave almost the same, if Sberbank-AO grew by 15% over the month, then Sberbank-up will also change by about 15%.

Figure 5.1. Graph of price changes for ordinary shares of Sberbank.

Figure 5.3-5.4. Comparison of rates of ordinary and preferred shares of Rostelecom.

6. Promissory note

A bill of exchange (from German Wechsel) is a security of a strictly established form, certifying an unconditional obligation of the drawer (promissory note), or another payer specified in the bill (bill of exchange - draft) to pay, upon the occurrence of the period stipulated by the bill, a certain amount of money. The bill refers to order securities, that is, the transfer of rights on it is carried out by making a special inscription - an endorsement. An endorsement may be in blank (without specifying the person to whom performance is to be made) or by order (indicating the person to whom performance is to be made). The person who transferred the bill of exchange by means of endorsement shall be liable to the subsequent holders of the bill for the possibility of exercising the rights under the bill.
Bills are urgent and on presentation. The term of payment is indicated on the urgent bill. A promissory note on which no due date is specified is treated as payable at sight. Bills are treasury, bank, commercial.

A treasury bill is issued by the government to cover its expenses and represents short-term obligations of the government with maturities of 3, 6 and 12 months.

A bank bill may be issued by a bank or an association of banks (issuing syndicate). The income of the owner of a bill is determined as the difference between the redemption price, which is equal to the face value, and the selling price of a bank bill, which is lower than the face value. The advantage of a bank bill is that the latter is a means of payment, is a way to profitably allocate capital, and has multiple turnover.

A commercial (trade) bill is used for crediting trade operations. It is issued by the enterprise on the security of goods when making a trade transaction as a payment document or as a promissory note. There are three parties involved in a transaction using a bill of exchange: the debtor (drawer), the original creditor (drawer) and the one to whom the amount must be paid - the remitter. Usually the drawee expresses his consent (emphasis) to the payment of the debt. This consent makes the bill legal tender. The bank usually acts as the payer. The creditor applies to the bank with a bill of exchange, on which the accent of the debtor is fixed in writing, and receives money in return. This procedure is called bill posting. The amount of money issued by the bank to the drawer is less than the amount indicated on the bill. This difference delivers the bank's income. Accounting for a bill is the issuance of a loan to a creditor. Bill circulation is carried out according to the following scheme:

1. Delivery of goods.
2. Accent of a bill in the bank where the buyer is served.
3. Transfer of a bill.
4. Payment order to the bank servicing the seller for payment of this bill
5. Accounting for the seller's bill within the discount rate.
6. Presentation of the bill for payment within the specified time.
7. Receipt of payment.

The bill is one of the oldest financial instruments. It originally appeared in Italy in the 12th century, so many terms associated with bills (endorsement, aval) are of Italian origin. In those days, the promissory note was used in transactions related to currency exchange. The changer, having received the money, issued an IOU, the payment of which could be received elsewhere. Due to its flexibility and convenience, the bill quickly spread throughout Europe. The increase in the volume of bill transactions required legislative consolidation of the established customs of business turnover, and in 1569 the first bill of exchange charter was adopted in Bologna.

Initially, the holder was forbidden to transfer his rights to other persons, but by the beginning of the next century, these restrictions became a deterrent to trade, and they were gradually abolished. It became possible to transfer bill of exchange rights by affixing a special order of the bill holder - endorsement (from the Italian in dosso - back, spine, reverse side, since this inscription was usually made on the reverse side of the bill).

In Russia, the bill appeared at the beginning of the 18th century due to the development of trade relations with the German principalities, so the Russian word "bill" comes from the German wechsel (exchange, transfer). On the basis of the German bill of exchange legislation, the first Russian Bill of Exchange Charter of 1729 was written, however, direct borrowing of foreign law did not meet the requirements of Russian reality. The most detailed charter regulated promissory notes related to the transfer of funds, while in Russia the practice of using promissory notes for issuing loans became most widespread.

The Russian bill of exchange charter of 1902 lasted until the October Revolution of 1917. By a decree of the Council of People's Commissars of November 11, 1917, a two-month moratorium was announced on the implementation of bill payments, as well as bill protests. Subsequently, the circulation of bills on the territory of the RSFSR was significantly reduced. However, in connection with the transition to the New Economic Policy (NEP), in 1922, the Promissory Notes Regulations were adopted, according to which cooperatives and banks were allowed to issue and accept bills of exchange for accounting, as well as use them to process credit transactions.

The bill was put into circulation for the second time on the territory of Russia by the Decree of the Presidium of the Supreme Council of the RSFSR of June 24, 1991 No. 1451-I “On the use of a bill in the economic circulation of the RSFSR. Also, this Federal Law eliminated a number of controversial issues related to the issuance of bills of exchange and the calculation of interest and penalties, and also limited the circle of persons who can be bound without restrictions on promissory notes and bills of exchange, excluding from it the constituent entities of the Russian Federation, urban, rural settlements and other municipalities . At present, in the territory of the Russian Federation, this law is fundamental in the regulation of bill relations.

7. Warrant

The warrant has two uses. First, a warrant is a certificate that gives the holder the right to buy securities at a specified price for a specified period of time or indefinitely. Sometimes a warrant is offered along with the securities as an incentive to buy them. Secondly, a warrant is a certificate of a warehouse about the acceptance of a certain product for storage. A warrant is a document of title transferred by way of an endorsement (i.e. an endorsement). It is used in the sale and pledge of goods. A warrant can be nominal and bearer. The warrant consists of two parts: the actual warehouse and pledge certificates. The first certificate serves to transfer ownership of the goods when it is sold, the second - to obtain a loan secured by the goods with notes on the terms of the loan. In this case, the warrant is transferred to the creditor by endorsement. The lender can make a further transfer, in particular, to the holder of the warehouse receipt when he repays the loan. When a warrant changes hands, the goods can change their owner many times, remaining in the same place, i.e. in the warehouse of the economic entity from which the cash warrant was received. To receive the goods from the warehouse, it is necessary to present both parts of the warrant indicated above.

8. REPO transaction

REPO transaction is a transaction with securities, consisting of two parts, the execution date, which is determined by the settlement code and the REPO term. For the first part of the REPO transaction, on the date of its execution, the seller of securities is obliged to deliver securities, and the buyer is obliged to pay cash.

The conclusion of REPO transactions with securities is carried out in the "REPO with shares" and "REPO with bonds" trading modes.

The list of securities admitted to trading in the "REPO with shares" and "REPO with bonds" trading modes is established by the decision of the Director General of the Exchange.

Trading modes "REPO with shares" and "REPO with bonds" provide an opportunity to conclude transactions with a settlement date on any day, starting from the next day after the day of the transaction until the selected date of its execution inclusive. The date of execution of the second part of the REPO transaction is the date defined as T+x+k, where T+x is the due date of the execution of the first part of the REPO transaction, and k is the Term of the REPO transaction. (k takes a value from 0 to 180 calendar days, x - from 0 to 2 settlement days).

Features of trading modes "REPO with shares" and "REPO with bonds":

• using a discount to the market price of the previous trading day when concluding REPO transactions (changing the mechanism for concluding a REPO transaction);
• use of compensation contributions as a standard exchange mechanism for controlling market risks and reducing the risks of default. The mechanism of compensatory contributions (as an optional feature) is activated through the possibility for counterparties to determine the maximum and minimum discount values ​​when concluding a transaction. The legal nature of compensation contributions is an early partial fulfillment by one of the parties of its obligations under the second part of the REPO transaction, i.e. making a compensation contribution reduces the obligations (and claims) of counterparties under the second part of the REPO transaction;
• conclusion of transactions without control of collateral for the first part of REPO (S0), as well as transactions with the fulfillment of obligations under the first part of REPO in a deferred period - on the 1st or 2nd day after the date of the transaction (S1, S2);
• conclusion of intraday REPO transactions (fulfillment of obligations for the first and second parts of which falls on the same day);
• conclusion of REPO transactions with the possibility of fulfilling obligations under its second part for a period of up to 180 calendar days, and not only within the current coupon period.

At the workplace of a trading participant in the "REPO with shares" and "REPO with bonds" trading modes, it is possible to submit unaddressed and targeted REPO orders to the trading system. Details of targeted orders: the REPO amount, the number of securities and the initial value of the discount are interconnected. An indication by the Trading Member in a targeted REPO (bond) order of any two details is sufficient for the calculation of the third detail in the Trading System. Each trading day, starting from the date of proper execution of the first part of a REPO transaction concluded in the "REPO with bonds" trading mode and the terms of which set discount limits, until the date following the date of actual execution of the second part of this REPO transaction, or the date of non-execution of this REPO transactions, the current value of the discount is calculated in the Trading System.

If the current discount value exceeds the maximum limit value of the discount, the buyer under the first part of the REPO transaction has an obligation to deliver the Compensation Fee in the form of securities on the next settlement day (by partial preliminary delivery of securities under the second part of the REPO transaction). If the current discount value becomes less than the minimum limit value of the discount, the seller under the first part of the REPO transaction has an obligation on the next settlement day to pay the Compensation Fee in cash (by partial prepayment for the second part of the REPO transaction). The procedure for making the Compensation Contributions is determined in accordance with the Clearing Rules. Partial payment of compensation contributions is not allowed.

In the "REPO with shares" and "REPO with bonds" trading modes, it is possible to execute a REPO transaction ahead of schedule, starting from the settlement day following the day of execution of the first part of the transaction.

9. Legal basis for securities

It should be remembered that debt holders generally do not have the right to vote at company meetings on matters that affect the company's operations, but they do have the right to vote when it comes to their rights. In addition, the rights of securities holders include:

• receipt of notice (or confirmation) of the amount of the principal amount of the debt and the terms of this loan;
• receiving fixed (or floating) interest on the principal amount of the debt;
• receipt of the agreed amount of repayment (usually the same amount as the principal amount of the debt) on the date of repayment (if repayment was not made ahead of time under the terms of the agreement);

the right to require the company to repay the loan ahead of time if the value of the company's assets has fallen below an agreed level (i.e., the assets that secure the loan).

The holders of debt instruments have only one obligation to the company, which is that they must provide the company with an amount equal to the amount of the loan agreement.

When a company is liquidated, bondholders have more privileges than equity holders. If the company is liquidated, then the liquidation commission must first of all pay off the main debts of the company, namely, make payments on bonds.
After settlement with all creditors, the remaining property is distributed among the shareholders. Dividend arrears, if any, and the liquidation value amount are paid first to holders of preferred shares, and then to holders of ordinary shares.

In case of reorganization (separation, merger or transformation) of a company, its securities may be: divided, merged or renamed.

Company division. In early 2006, MMC Norilsk Nickel announced a reorganization, namely the spin-off of Polyus Gold. As a result, each shareholder of MMC Norilsk Nickel received shares of Polyus Gold, in proportion to each share of MMC Norilsk Nickel, one share of Polyus Gold was issued.
Company merger. In October 2006, Purneftegaz and Rosneft merged, after which the shares of Purneftegaz were converted into shares of Rosneft, with a coefficient of 0.16. That is, 16 shares of Purneftegaz could be exchanged for 100 shares of Rosneft.

Company transformation. In June 2006, Gazprom acquired the Sibneft company, as a result of which the company was renamed Gazprom Neft. The holders of the Sibneft shares exchanged their securities for the shares of the new Gazprom Neft company in a ratio of 1:1. After that, the shares of "Sibneft" ceased to exist and the shares of the company "Gazpromneft" appeared on the market. This transformation did not affect the change in the share price, which can be seen in Figure 9.1-9.2.

Figure 9.1-9.2. Transformation of the Sibneft company into the Gazprom Neft company.

10. Transfer of ownership of securities
10.1. Purchase and sale

In most transactions, the transfer of ownership of securities occurs under a sale and purchase agreement, where one party (the seller) undertakes to transfer ownership of the goods to the other party (the buyer), and the buyer undertakes to accept this goods and pay cash for it.

The contract usually specifies a price per share. Assuming that it is not the shares themselves that are transferred, but the rights to them, since trading is carried out not in papers, but in the rights that they provide to their owner.

10.2. Mena

When concluding an exchange agreement, each of the parties undertakes to transfer one commodity to the ownership of the other party in exchange for another. The rules on sale and purchase apply to the exchange agreement. At the same time, each of the parties is recognized as the seller of the goods that it undertakes to transfer (Article 567 of the Civil Code of the Russian Federation), and the buyer of the goods that it undertakes to accept in exchange. The advantage of this type of agreement is that there is no need to send counter cash flows. However, this is possible only if the packages of securities intended for exchange are recognized as equivalent. If this is not the case, then one of the parties pays the amount specified in the contract.

10.3. donation

With the adoption of the new Civil Code of the Russian Federation, the execution of a gift agreement now differs significantly from the previously accepted form. In Art. 574 of the Civil Code of the Russian Federation establishes a simple written form of a donation agreement for donating movable property, which includes securities. If earlier in almost all cases the contract had to be certified by a notary, now this is not required. A donation agreement and/or a transfer order may be submitted by both the donor and the donee. The donation agreement must specify how many securities the donor transfers to the donee.

Transfer of property rights as a result of inheritance. When deciding on the inheritance of securities, the registrar makes changes to the register on the basis of the following primary documents:

• certificate of the right to inheritance, notarized;
• court decisions.

A statement or death certificate is not the basis for making changes to the registry. However, sometimes there are cases when non-standard registrar actions are required. This is relevant if:

• the shareholder does not have a will and heirs;
• the heirs of the shareholder did not submit a claim for the securities.

11. Derivatives

Derivatives are instruments such as forwards, futures and options. There are several names for such instruments: derivatives, futures contracts or derivatives. All these names, although different, mean the same thing.

11.1. Forward

To fully understand these tools, let's look at a historical example. In the 1950s and 60s, there was a grain exchange in the United States, where everyone could come with money and buy grain, or vice versa, bring their own grain and sell it, having received money for it. For example, the current price for grain is $100 per ton, but the farmer does not yet have this grain. He will produce grain only in three months on day X, and if the price drops to $50 per ton, he will suffer losses; if he grows to $150, he will receive excess profit. How to be?

Figure 11. Possible price options for selling grain by a farmer.

A farmer can come to the stock exchange and, having found a counterparty, conclude an agreement with him that he will sell him (the counterparty) one ton of grain for $100 on X day, the agreement implies only cash settlements. Note that the farmer only signed the contract, no one paid the money itself. Now two scenarios are possible, the price of grain on day X will be $50 or $150. Option one. The price of grain has been declining for three months and on day X it was $50. The farmer sells one ton of grain on the stock exchange for $50, and turns to the counterparty under his contract and asks to reimburse him for the difference in price. The contract indicates the sale price of $100, and the current price is $50, which means that the counterparty must pay the farmer $50. The financial result of the entire transaction: + $50 - sale of real goods on the exchange, + $50 payment from the counterparty, total: $100.

Figure 11.2 Selling grain at $50.

Option two. The price of grain has been growing for three months and on day X it was $150. A farmer sells one ton of grain on the stock exchange for $150, and now a counterparty under the contract approaches him and asks to reimburse him for the difference in price. The contract specifies the sale price of $100 and the current price of $150, which means that the farmer must pay the counterparty $50. The financial result of the entire transaction: + $150 - sale of real goods on the stock exchange, - $50 payment of the difference under the contract to the counterparty, total: $100.

Figure 11.3 Selling grain at $150.

For any price change, the farmer received his $100. Such transactions are usually called hedging, and the contract concluded by the farmer and the counterparty is called a forward.

Forward - a contract for the purchase and sale of goods in the future.

Hedging - insurance against changes in the price of goods.

11.2. Futures

The transaction described above among market participants has gained great popularity and scope, so the financial community has decided to standardize forward transactions and make forward transactions an exchange instrument. To do this, it was necessary to standardize in the forward:

• underlying asset - clearly link the forward to a specific product: grain, oil, gold, etc.;
• delivery date - clearly indicate the delivery dates of the goods: in a month, three months or six months;
• volume of the contract - clearly indicate the volume of delivery of goods: one forward one ton, two forwards two tons, and so on.

By introducing such standards into the forward contract, we received a new exchange instrument - futures. Futures is an exchange instrument for buying and selling goods in the future, that is, a futures is a standardized forward.

How the futures works, we will analyze in the following example. There is an exchange of real goods, where you can buy and sell certain lots of grain. The current grain price is $100 per ton. If the price of grain is predicted to rise to $120, and having $100 in the account, we can buy one ton and wait for growth. But at the same time, we can simply enter into an agreement to buy grain on day X at a price of $100 by buying a futures contract. Due to the fact that futures is an exchange contract, it means that the exchange is the guarantor of its execution. The exchange, in turn, requires a certain guarantee amount from both the buyer and the seller of the futures, for the obligations of the futures. This guarantee amount, as a rule, is 20% of the price of the product itself. In our example, the guarantee amount will be $20 for one futures, which means that if we have $100 in our account, we can buy five futures contracts.

Figure 11.4 Purchase of grain $100 per ton.

When buying five futures contracts, we assume the following obligations: on day X (delivery date), we are obliged to buy five tons of grain at a price of $100 per ton. When buying a futures, no one pays money to anyone, and only the guarantee amount is reserved.

Within a certain time (no more than three months), the price rose to $120 per ton. So now we can sell five futures contracts at $120.

Figure 11.5 Selling grain at $120 per ton after 3 months.

Selling five futures, we assume the following obligations: on day X (delivery date) we are obliged to sell five tons of grain at a price of $120 per ton. Now the exchange sees that we have counter obligations, five futures - buy at $100 and five futures - sell for $120. This means that our obligations are canceled and the difference between them $120 - $100 = $20 * 5 (number of futures) = $100 is credited to the account. The exchange also releases the previously reserved funds of $100. As a result, the account for the transaction was $200.

11.3. Options

In the world of investing, an option is a contract entered into between two persons, whereby one person grants the other the right to buy a certain asset at a certain price within a certain period of time, or grants the right to sell a certain asset at a certain price within a certain period of time. The person who received the option and thus made the decision is called the buyer of the option, who must pay for that right. The person who sold the option and who responds to the buyer's decision is called the option seller.

There is a wide variety of contracts that have the features of options. Many varieties can be found even among the widely used financial instruments.

There are two main types of options - call and put options. Currently, such contracts are listed on many exchanges in the world.

11.3.1. Call options

The most well-known option contract is a call option on stocks. The owner (buyer) of a call option has the right, but not the obligation, to buy the underlying asset (stock or commodity) at a predetermined price (strike) within a certain time. Pay attention to the following four points that are stipulated in the contract:

• a company whose shares can be purchased;
• the number of shares to be acquired;
• the purchase price of shares, called the exercise price (exercise price), or the strike price;
• the date on which the right to buy expires, called the expiration date.

For example, the current price per share is $100. We buy one call option for $5 with a strike of $100. This means that for a certain time (for example, three months) we have the right to buy a share at a price of $100, but, importantly, only the right, not the obligation to buy this share. For this right (option) they paid $5.

Figure 11.6. Buying a call option on a share for $100.

If three months later on day X (delivery date) the share price rises to $150, then the financial result will be as follows. With a call option, we can buy a stock at $100 and immediately sell it at $150. And that turns out + $50 to the account, but we should not forget that this option was bought for $5, which means that $5 should be deducted from the income received ($50). The result of the transaction is $45 profit.

If, three months later, on day X (delivery date), the price per share fell to $50, then the financial result would be as follows. With a call option, we can buy the stock at $100, but at $50 we don't have to. So, in this case, we simply do nothing. As a result, our financial result will be - $5 (funds that paid for the option).

The second type of option contract is the put option.

11.3.2. Put options

The owner (buyer) of the Put option has the right, but not the obligation, to sell the underlying asset (share or commodity) at a predetermined price (strike) within a certain time. Pay attention to the following four points that are stipulated in the contract:

• a company whose shares can be sold;
• number of shares sold;
• the sale price of shares, called the exercise price (exercise price), or the strike price;
• the date on which the right to sell ceases, called the expiration date.

A put option, in fact, is a mirror image of a call option, if you can buy in a call option, then you can sell in a put option.
For example, if the current price of a share is $100, we buy one put option for $5 with a strike price of $100. This means that within a certain period of time, for example three months, we have the right to sell the share at $100, but what is important, only the right, not the obligation to sell this share. For this right (option) they paid $5.

Figure 11.7. Selling a put option per share at $100.

If three months later on day X (delivery date) the share price drops to $50, then the financial result will be as follows. Having a put option, we can buy a share for $50 and immediately sell it at a price of $100, receiving + $50 to the account, but we should not forget that this option was bought for $5, which means that $5 should be deducted from the received income of $50. The result of the transaction is $45 profit.

If three months later on day X (delivery date) the share price rises to $150, then the financial result will be as follows. With a call option, we can sell the stock at $100, but at $150 we don't have to. So, in this case, we simply do nothing. As a result, our financial result will be - $5 (funds that paid for the option).

12. Stock exchanges in Russia

A stock exchange is a commercial company specially registered and licensed by the Federal Service for Financial Markets, which can be considered an organizer of trading.

It follows from the definition that there can be many stock exchanges in the country, since they are not state-owned and can compete with each other.

List of stock exchanges in Russia:

• MICEX - Moscow Interbank Currency Exchange;
• RTS - Russian Trading System;
• MFB - Moscow Stock Exchange;
• SPbSE - St. Petersburg Stock Exchange;
• Exchanges of other cities.

The Moscow Exchange, the St. Petersburg Exchange and the exchanges of other cities, as a rule, were created in order to solve local problems. For example, a certain region issues its own bonds, for ease of interaction with investors, it is better to place this issue on the exchange located in this region, and not place it on the central exchanges. On the central exchanges (MICEX and RTS), as a rule, the most liquid stocks and bonds are traded.

12.1. MICEX

The MICEX exchange is divided into several sections: stocks, bonds and currency. This exchange is the undisputed leader in Russia for the following reasons:

• high technical equipment. All trading takes place electronically;
• thoughtful clearing. One of the first exchanges to introduce a delivery versus payment procedure, when you buy a share, you get it instantly;
• a large number of participants. First of all, this is due to the fact that Internet trading systems operate on this exchange;
• a large turnover of financial resources and transactions in one day.

The following technological schemes for the primary placement are implemented in the trading system of the MICEX SE:

1. Auction to determine the price:

• auction at cut-off price. A preliminary collection of applications from potential investors is carried out, indicating the desired purchase price of the security. Then the issuer, on the basis of submitted bids for purchase, determines the placement price of its securities; under such a placement scheme, all transactions are made at a single placement price determined by the issuer, provided that the price indicated in the purchase order is not lower than the placement price;
• auction at the bid price. A preliminary collection of applications from potential investors is carried out, indicating the desired purchase price of the security. Then the issuer, on the basis of submitted bids for purchase, determines the placement price of its securities; under this placement scheme, transactions are made at prices indicated by investors in bids, provided that the price indicated in the bid is not lower than the offering price.

2. Competition (auction) to determine the coupon rate (the placement scheme is similar to those described above, but the investor specifies the desired coupon rate at a known placement price; placement in this case is carried out in the "Placement: Direct Orders" mode).

3. Placing in the "Placing: Direct Orders" mode at the placement price or profitability predetermined by the issuer.

12.2. RTS

Trading sections on the RTS exchange:

• classical;
• exchange;
• FORTS section (futures and options RTS);
• section Start.

12.2.1. classic market

The classic RTS market - the oldest organized securities market in Russia - began operating on July 5, 1995. Trading participants who had RTS terminals could set quotes for Russian shares and agree on the conclusion and execution of a transaction by telephone. Today, the main principles of trading on the classical market are the absence of 100% preliminary deposit, the choice of the date and method of settlement, the possibility of settlement in foreign currency. It does not require a preliminary transfer of securities and funds to the auction, which ensures high efficiency of operations. Transactions on the Classic Market are concluded using RTS Plaza trading terminals. A professional participant in the securities market can become a trading participant on the RTS Classic Market.

Prices formed on the RTS Classic Market are a generally recognized reference point for investors who transact with Russian shares and depository receipts for them both through the RTS and on the over-the-counter market and on other stock exchanges in Russia, stock exchanges in Europe and the USA. Information about trading on the RTS is broadcast to a huge number of consumers in Russia and abroad and is the basis for calculating the main indicator of the Russian stock market - the RTS Index.

The RTS Classic Market offers a wide range of securities - about 2,000 shares, bonds and investment units. Securities included in the Quotation Lists A1, A2 and B are the highest quality instruments, the issuers of which comply with the strict requirements of OJSC "RTS" for disclosure of information and compliance with the norms of corporate conduct.

The trading session on the Classic stock market lasts from 10:30 to 18:00 Moscow time.

12.2.2. stock market

Trading on the RTS Exchange Market began in November 2004. The new platform was created to organize trading in a wide range of securities of Russian issuers: shares (highly liquid "blue chips" and "second tier" shares), bonds, investment units (Instruments). One of the priority areas for the development of the Exchange Market is the second-tier share market: increasing the liquidity of this market segment, bringing new financial instruments to the market, and expanding the range of liquid securities. Market-makers institute operates on the market as one of the most effective mechanisms for the development of the "second tier" share market.

At present, from 30 to 50 percent of the total trading volume on the Exchange market falls on the "second tier" share market.
The RTS exchange market is oriented towards both institutional and private investors.

Trading in securities on the RTS Exchange Market is carried out in the anonymous trading mode using the principle of a continuous double auction of counter orders (Order-Driven Market), using the "delivery against payment" technology with 100% preliminary deposit of assets:

• the use of a continuous double auction of counter orders allows you to connect Internet trading systems or Direct Access (Direct Market Access), as well as Automatic trading systems (Algorithmic Trading);
• delivery versus payment excludes credit risks in the settlement of transactions;
• anonymity of bids allows the use of transaction prices for calculating the market price and the recognized quotation;
• Simplicity and manufacturability of transactions is ensured by the "Order driven market" principle, which is the basis of the trading mechanism.
  "Order driven market" - a market of competing orders, in which a deal is closed automatically when conditions in counter anonymous orders are crossed, using a continuous double auction of counter orders.
  Continuous auction of anonymous bids with 100% pre-deposit of assets. Settlements on the terms "delivery against payment" on the day of the transaction.

The main characteristics of the RTS Exchange Market:

• traded securities - more than 3,000 shares, bonds, investment shares;
• quotation currency - Russian rubles;
• settlement cycle T+0 (on the day of the transaction);
• settlement currency - Russian rubles;
• lot size - from 1 to 100 pcs. in the lot;
• duration of the Trading session on the RTS Stock Market from 10:30 to 18:00 Moscow time.

The Exchange Market provides for the following Trading Periods:

• Pre-trading period;
• Trading session.

Each of the listed Trading Periods corresponds to the types of orders established by the Trading Rules.

The following Transaction Modes are implemented on the Exchange Market:

• The mode of transactions concluded on the basis of the Order-Driven Market principle (Order-Driven Market mode);
• Negotiated deals mode (RPS mode);
• Mode of targeted transactions with deferred execution (T + N mode);
• REPO transactions mode.

Trading participants can promptly transfer funds between the RTS markets: the Exchange market and the derivatives market FORTS.
Intermediate clearing sessions implemented in the system of settlements for transactions concluded on the RTS Exchange Market allow prompt deposit and withdrawal of funds and/or securities throughout the entire Trading session.
The "Single Cash Position" technology implemented on the market makes it possible to make transactions with securities listed on the RTS Exchange Market and shares of OJSC "Gazprom" from one cash account.

12.2.3. FORTS Market

The Futures and Options Market on the RTS (FORTS) is the leading Russian derivatives market.

The most important part of transactions concluded on the derivatives market is their execution on a certain date in the future on the terms agreed upon at the time of conclusion. Trading participants on the RTS derivatives market are reliable highly capitalized investment companies and banks.

At the moment, futures and options are circulating on the FORTS market, the underlying assets of which are shares of Russian issuers, the RTS index, bonds, foreign currency, the average ruble one-day loan (deposit) rate MosIBOR, Urals oil and gold.

12.2.4. RTS Start

RTS START is a segment of the exchange securities market of RTS OJSC, created specifically for companies with small and medium capitalization.

Goals of RTS START:

• increase the number of securities traded on the Russian market;
• provide an opportunity for small, dynamically developing companies to create and increase capitalization;
• ensure the possibility of attracting capital to the real sector of the economy through the stock market.

Purpose of RTS START: placement and circulation of securities of small and medium capitalization issuers.

12.3. MFB

Non-commercial partnership Moscow Stock Exchange (Moscow Stock Exchange) was founded in March 1997.

MFB services:

• Organization and conduct of the initial placement of securities.
• Organization and conduct of secondary trading in securities.
• Organization and holding of auctions in the section of the commodity market.
• Organization and holding: competitions and auctions under the State order; sales of property during privatization; sales of property in bankruptcy; auctions in the interests of customers for the purchase / sale of various goods; auctions for the sale of property of Russian legal entities and individuals; auctions for the sale of non-resident property; auctions for the sale of mortgaged property.
• Providing information on trading and securities.
• Providing information on competitions and auctions, assistance in filling out applications for participation in the competition, consultation.
• Assistance in placing orders for the supply of goods, performance of work, provision of services for state and municipal needs.
• Organization of training on the subject: "Organized financial market".

12.4. Stock exchange "St. Petersburg"

Non-commercial partnership St. Petersburg Stock Exchange (St. Petersburg Stock Exchange) has been part of the RTS Group since April 2002.

On March 13, 2002, the Exchange Council of the St. Petersburg Stock Exchange approved a plan for the reorganization of the exchange, according to which a division into members of the Non-Commercial Partnership of the St. Petersburg Stock Exchange and members of CJSC St. Petersburg Exchange was introduced. Thus, NP RTS Stock Exchange ", CJSC AB Gazprombank and CJSC Saint Petersburg Exchange entered the Non-Commercial Partnership on a parity basis, and professional participants in the securities market trading on the exchange became members of CJSC Saint Petersburg Exchange.

The main joint projects of RTS and St. Petersburg Stock Exchange, which were successfully implemented and widely recognized by the stock and investment community, were trading in Gazprom shares through RTS terminals and the FORTS derivatives market. By joining forces, exchanges have become absolute leaders in these segments of the financial market.

13. Brokers and dealers

Dealer activity is the execution of securities purchase and sale transactions on one's own behalf and at one's own expense by publicly announcing the purchase and/or sale prices of certain securities with the obligation to purchase and/or sell these securities at the prices announced by the person carrying out such activities.

A professional participant in the securities market carrying out dealer activities is called a dealer. Only a legal entity that is a commercial organization can be a dealer.

It can be seen from the definition that a dealer is a specially registered and licensed organization that trades on the stock exchange with its own money, at its own discretion and at its own expense.

Brokerage activity is the performance of civil law transactions with securities as an attorney or commission agent acting on the basis of an agency or commission agreement, as well as a power of attorney to perform such transactions in the absence of indications of the powers of an attorney or commission agent in the agreement.

A professional participant in the securities market engaged in brokerage activities is called a broker.

Thus, we can conclude that a broker is a specially registered and licensed organization that trades on the stock exchange with the money of clients and at their expense. That is, if we want to buy 10 shares of Sberbank on the exchange, then we turn to the broker with a purchase order, after which the broker himself buys 10 shares of Sberbank and transfers them to us, for which he receives a commission. A broker is an intermediary.

In reality, it looks like this. We come to a broker and open a brokerage account with him, where we deposit our funds, for example, 1,500 rubles. This procedure is similar to opening a bank account. After the money is credited to the account, we send an order to the broker to buy 10 shares of Sberbank at a price of 108 rubles per share. The broker, having executed this order, writes down 10 shares for us to the depositary account. A depository account is opened together with a brokerage account and serves directly for storing shares. An important feature of this account is that it is not possible to receive the purchased 10 shares of Sberbank from it, since the shares do not exist in paper form, but you can only receive an extract indicating that we own these shares.

14. Insiders

Control of insiders and the use of insider information is most successfully carried out in the United States. In our country, the insider information control technology is just beginning to be used, so we will consider this concept in accordance with American standards.

Under US law, non-officials and directors of corporations whose shares are listed on central exchanges are required to report changes in the structure of the firm's shareholding. Such a report, known as Form 4, must be completed within 10 days of the month in which the change occurred. This requirement is also required for shareholders owning more than 10% of the firm's shares. Such shareholders, as well as directors and high-ranking employees of the company are called insiders. The information they provide about their transactions is then printed in the Official Summary of Insider Transactions published by the SEC (U.S. Securities Trading Commission). For example, a report on transactions in January that was reported in early February will be printed in early March. Thus, it may take 2 months before the transaction data becomes widely known.

The Securities Trading Act of 1934 prohibits insiders from selling securities short. In addition, they are required to return to the corporation all profits from short-term transactions in their own securities. Used in this case, the term "short-term" means that the purchase and sale were made within 6 months. As a result, few insiders both buy and sell their own securities during this period. In order not to lose profits, they prefer to plan their transactions so that more than 6 months pass between buying and selling.

In the United States, it is illegal for someone to use inside (i.e. not available to the general public) information about a corporation in a securities transaction that other participants in the transaction cannot use. This prohibition applies not only to the insiders themselves, but also to the persons to whom they transfer such classified information.
By law, there are two types of information not available to the general public: “private” (which is legal to transmit) and “internal” (which is illegal to transmit). Unfortunately, the boundaries between these types of information are very blurred, which is the reason for constant difficulties for analysts working in this field.

Insiders trade their stocks for many reasons. For example, purchases can be made as a result of the exercise of any rights (options). Sales may occur due to the need for cash. It is often possible to observe how, within one month, some insiders buy shares, while others sell them. However, in accordance with internal information, the share price on the market differs from the real value, so it is natural to expect an excess of one type of operation in the insider market over another (ie, either sales or purchases).

Hello! In this article we will talk about the stock market.

Today you will learn:

• What is the stock market;
• Who works in the stock market;
• How is the stock market traded?
• How to start trading in the stock market yourself.

The stock market, on the one hand, is an area for unlimited earnings, raising funds, literate and increasing capital. On the other hand, the possibility of losing everything for one impulsive and wrong decision. In order to study all aspects of the stock market, it will take a very long time. Let's see if it's worth it.

What is the stock market

Stock market- a set of mechanisms that allow individuals or to make transactions with securities.

Some people think that the stock market is only responsible for securities, but this is far from the case. It is enough to look at what is traded on the stock exchanges and everything will become clear. There are currencies, commodities, securities and derivatives that facilitate financial trading.
At the same time, with the English name, everything is also not so clear. phrase stock market previously also treated as a securities market. But now, with the development of modern technologies, we are coming to an understanding that it is impossible to divide the three components of one market into separate areas, therefore, the concept of the stock market defines most of the “commodities” for investment.

Now let's figure out what is traded in the stock market. When it comes to securities, the main commodities will be stocks and bonds. Bills of exchange and certificates are still circulating on the market, but much less frequently. We will understand what a stock and a bond are, consider their main differences and benefits from a particular security.

Promotion - an equity security that gives the owner the right to a part of the organization's property upon liquidation, as well as receiving dividends.

Shares are non-preferred and preferred. Their main difference is that the income of the former fluctuates depending on the financial result, while the income of the latter is stable, but their owner does not have the right to vote on the board of directors. Common stocks are more common.

Bond - a debt security that guarantees the owner the right to receive from the issuer the nominal price of this security.

A more conservative financial instrument that allows you to make a profit with a great chance.

Derivatives – futures and options.

Stock market participants

Stock market participants can be divided into several categories:

• Issuers - persons who issue securities;
• Investors are individuals who buy securities.

In addition to these two categories, there are those who are responsible for the operation of the exchange: depositories, registry manager, clearing house, etc. These bodies are responsible for the functioning of the entire system. Thanks to them, communication between all participants is carried out, sales occur every second. They charge a small commission for their work.

There are also two more special categories of participants:

Broker – a person who carries out transactions for the purchase / sale of securities on behalf and at the expense of the client.

It can be both credit institutions and special companies that carry out brokerage activities. Now their competence also includes trust management (using the client's funds to receive his profit), consultations, training, etc.

Dealer – a person carrying out transactions of purchase/sale of securities on its own behalf and at its own expense by publicly announcing the purchase/sale price.

These are professional market participants who require a license to carry out their operations. The bank regulates the conditions for obtaining such licenses. At the initial stage, with minimal turnover on the trading account, you can use only basic tools, which does not allow you to accelerate to good money in a short time.

Stock Market Functions

Now let's talk about the global function of the stock market. It will allow you to understand the essence of this phenomenon, which will bring you one step closer to making a profit.

So, the main function of the stock market is the redistribution of funds. Everything is the same as in the term "investment". People who have a surplus of money give their money to those who have a shortage of money.

It often happens like this: a company needs free funds for development -> issues shares -> raises funds -> develops -> pays dividends (profit).

In America and in the West, the economic importance of the stock market is difficult to overestimate. For example, in America, the unorganized securities market is so highly developed that the shares of companies that had just been created could literally be bought in a garage.

This was used both by stockbrokers (sold worthless securities to ignorant investors) and traders who hoped to benefit from these securities if they suddenly went up. Now things are a little different.

In the West, banks are very actively engaged in the task of redistribution. They attract financial resources from the population, increasing their financial possibilities to the maximum, and redirect them to the stock market.

By buying stocks or bonds of companies or even states, they give those funds that borrowers need. And after that they make a profit both from loans and from operations with securities, and again redirect the funds to purchase securities.

A vicious circle, thanks to which you can successfully stimulate the development of the economy, business of any scale and, most importantly, reduce the gap between classes.

And what about the stock market in Russia now? The answer to this question is not so clear cut. On the one hand, we have a weak development of investment culture among the general population, and on the other hand, the Central Bank talks about the transition to an investment model of the economy. With such statements, we can safely count on the fact that in 10-15 years, the culture of buying securities in Russia will grow significantly, and knowledge of the stock market, as well as the mechanisms of its work, will be highly valued.

Another function follows from this - the management of the state budget. You can increase the state. the budget at the expense of the population - by issuing federal loan bonds. Thus, free funds of the population are attracted and with their help the main holes in the budget are repaid.

The activity of the stock market in Russia is regulated by the Central Bank.

How is trading in the stock market

Independent trading in the stock market for a private investor is simply unrealistic, especially in the realities of the modern Russian economy.

In order to directly buy shares on the stock exchange, you will need:

• Get a license;
• Make an entry fee. MICEX - 3 million rubles;
• Buy special software that costs from 100 thousand rubles.

That is why the entire trading mechanism for beginners and traders who do not have huge capitals rests on brokers. As mentioned earlier, these are legal entities that carry out transactions on behalf of clients. For their services, they receive a commission, earning in this way.

If you do not plan to trade on the stock exchange on your own, or you do not have large free funds, it is recommended to use the services of a broker. But if it is possible to independently obtain a license as an exchange player, then it is strongly recommended to do this, because the broker charges a commission, which significantly reduces the profit on each transaction.

How to start trading in the stock market

That is why in order to start trading in the stock market, you need to carry out the following operations:

Step 1. Choosing a broker. This is one of the most important stages, thanks to which you can either start making a profit (at first, play at a loss or at zero) or go bankrupt at once. In order to choose a good broker, the first thing you need to look at is the stability of payments. It doesn't matter how much you earn, what matters is how much you can take.

One famous poker player said:

Back then it was not a problem to win money in poker. The main problem was to leave with a win.

Of course, now there are fewer dishonest brokers, but nevertheless they exist. After that - the cost of services, commissions, software and other application parameters.

Step 2. Installing the software on the user's computer and its basic configuration. One of the easiest steps, because most brokers have their own support team that can help with all technical issues.

It is much more difficult to learn about all the functions of the terminal. Often they are quite difficult to master, and in order to understand what each of the buttons is responsible for, it can take several days. After that, we can say that the terminal is mastered, now you can safely start trading.

Step 3. Opening a demo account. At this stage, we do not learn or even test the strategy. Just checking the functionality of the trading terminal. Playing on a demo account and on a real account is sometimes very different, primarily due to the psychology and pressure of real money.

For beginners, such accounts are dangerous because they can give a false impression that they can do something and can immediately go into a plus. Just test the capabilities of the terminal, trade a little, understand when to apply your strategy and now open a live account.

Step 4. Opening a real account and making the first deposit. From this moment begins a long journey of becoming from a novice trader to a seasoned wolf in the stock market. This path often takes more than one or two years, but it begins with this step.

Step 5. Start playing on the stock exchange according to an already developed strategy. From this moment on, the trader receives profits, losses, closes profitable positions, or loses all his money in the account. It all depends on the trader.

Step 6. Collecting information, preliminary analysis, obtaining knowledge and preparing a strategy. This will be the zero stage that everyone must go through before moving on to the first step - choosing a broker.

How to make money in the stock market

There are two main ways to make money on the stock exchange - investment activity and speculative. Their main difference is that investments are medium-term and long-term in order to receive profit from sales, dividends, and redemption of securities. Speculative activity involves the purchase and sale of securities for the purpose of resale and earning on price fluctuations.

A more profitable way is speculative. More reliable - investment.

Now about how you can earn by investing:

• Buy shares. The most risky type of securities. It allows you to receive annual dividends, which depend on the financial result of the enterprise. It is recommended to buy shares of fairly reliable issuers - Google, Apple, Samsung, etc.
• Buy bonds. A more secure way to invest money. Interest on some bonds is comparable to bank deposits, but nevertheless they are quite profitable if you know how to combine profitability and risks. After all, everyone knows that the higher the yield of a security, the higher the risk of non-payment for it - the issuing company. At the same time, developing companies, on the contrary, set the price below the average market price in order to compensate for the risks of investors and draw attention to them.
• Buy certificates. One of the most controversial ways. A certificate is one of the financial instruments, a kind of analogue of a bank deposit. With several differences - the amount of the certificate can be put absolutely any, the certificate can be transferred, sold without loss of interest, etc.

Speculators have a narrower range of ways to make money:

• Resale of shares. One of the most important ways to make money. It can bring profitability up to 20-30% per day, but the losses can be huge. A very risky way that requires good knowledge from the trader;
• Using futures and options. They allow you to transfer the purchase to a future period at current prices.

Depending on the method of earning, the profit, risks and financial instruments that generate profitability vary. Each trader must choose for himself in what volumes he is going to trade, with what and what profit he expects, and from this you should choose a financial instrument.

What are blue chips

Blue chips are recognized as the most stable companies that are guaranteed to pay their investors money, have tremendous stability and, as a result, low risks and low returns. Blue chips are the basis for conservative investment.

In Russia, commodity companies, Sberbank, VTB, Moscow Exchange and other large companies act as blue chips. They have been more stable over the past few years, are guaranteed to bring money to investors and raise additional cash every year through additional issuance of shares and bonds.

And now five real tips that can help investors get guaranteed returns:

1. Constantly study the stock market. The securities market is almost the same as IT technologies. It is constantly evolving, constantly on the move. It is changeable, fluid and because of this there is no certain way to win and get rich. Carefully study trends, changes, view news, new strategies, look for ways to improve your skills. All this will come in handy and all this will make the game a plus.
2. Remember that you are playing not only against other traders, but also against a broker. Many people forget this fact and often go into the red in the long run, despite the fact that they seemed to be playing in the black. Those few percent that are held by the broker and the entire exchange apparatus hit the pocket of an ordinary trader very hard.
3. Have a clear strategy. Everyone must choose and adapt a trading strategy for themselves. The combination of the manner of playing the stock exchange with character traits, risk appetite, profit requirements and many psychological factors allows you to achieve high results simply by following one "style of play". But at the same time, the strategy must be flexible enough to adapt to market changes.
4. emotional control. This does not mean a complete rejection of impulsive trades “by intuition”. This means analyzing all trades and finding the best method. Even if the trader will make most of the profitable trades that he opened thanks to his intuition, this is how it should be continued. But if emotional decisions brought only losses, then it is recommended to reconsider the approach to opening deals. Analysis and only analysis.
5. Keeping a diary of transactions. Probably one of the most important tips. The trade diary is a place where all information is recorded: when the trade was opened, the essence of the operation, what strategy, what was expected, what happened, profit or loss, why the trade was opened. And after each day, an analysis is carried out, which allows you to identify what turned out to be profitable and what was unprofitable. Over time, such a diary grows into a full-fledged analytical notebook for a trader, thanks to which he can track his progress, and also gets the opportunity to analyze which of the approaches brings him more income.

These simple tips can really help you trade on the stock exchange even more successfully than before.

The main mistakes of novice investors

Now about the five main mistakes of novice investors:

• Too early profit taking. Beginners try to fix profit as soon as it appears. This is a very wrong approach. Ideally, you need to take profits either at the time of a peak in prices or at the time of a recession, but this situation is achieved very rarely. It is better to wait and at the first signs of an opposite trend, immediately sell or buy;
• Emotional game. As mentioned earlier, a lack of emotional control can lead to unwanted trades. It is better to control your emotions once again. After all, you can’t tell from the face of an experienced trader whether he has lost $2,000 now or won;
• Absence of a diary. As mentioned above: a diary is one of the most important elements for introspection;
• Constant change of strategies. The search for the optimal strategy is one of the features of the stock market as a whole, but at the same time, the constant change of strategies cannot lead to anything good. After all, it is impossible to quickly understand all the pitfalls of a particular strategy without playing with it in practice. That is why you need to spend some time studying the strategy, learning how to play it, and only then change if it is not suitable for the stock market.
• No mechanism for fixing losses. This is one of the most important mistakes that, when trading with a broker's leverage, can lead to a complete zeroing of the bank account. Stop Loss is an option in which losses are fixed. It is usually set below the current price if you are buying and above if you are selling. Such a tool is available in every trading terminal, and it allows you to minimize risks. Proper use of it will protect against unnecessary losses.

The essence of the stock market can be capaciously reflected in one phrase - I win only when others lose. And this is the most effective definition of playing on the stock exchange.

Indeed, when one player makes a wrong decision, the other wins. That's what the stock market is good for. It allows you to play against the same traders, ordinary people.

The stock market is an important tool for both the state and ordinary people. It makes it possible to more effectively redistribute monetary resources both between sectors of the economy and between individual legal entities and individuals.

The stock market is a place where you can not stop in your development. You can only move forward in pursuit of new skills, trends, change and profit. Without this, outstanding results cannot be achieved.

There are several books that are required reading for anyone who wants to get a little familiar with the technique of stock trading and stock investments:

• Alexander Elder - Fundamentals of stock trading. Theoretically outdated reference book in terms of trading strategies, which allows you to understand the psychology of playing on the stock exchange, to understand what affects prices. Speaking quite roughly - a reference book of stock applied psychology;
• Benjamin Graham - The Intelligent Investor. A book that is needed primarily for those who want to make a quality passive income with the help of securities. You need to look for the latest edition, as it contains really practical advice, based on current exchange situations. Suitable for both beginners and professionals.

These two books are the foundation for understanding the stock market game and investing. With their help, you can create a certain base, from which you can build on when studying additional materials.

- This is the sphere of economic relations related to the issue and circulation of securities. Its purpose is to accumulate financial resources and ensure the possibility of their redistribution through the performance of various operations by market participants with securities, i.e. in the implementation of mediation in the movement of temporarily free funds 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 the issuance (issue) and initial placement of securities.

Secondary - This is a market where previously issued securities are circulated, purchase and sale or other forms of transfer of a security from one owner to another are carried out during the entire life of the security. Here, in the process of buying and selling an asset, its actual rate is determined, i.e. the price of the securities is quoted.

Types of securities markets depending on on the degree of organization:

• organized;
• disorganized.

Organized market - it is the circulation of securities on the basis of statutory rules between licensed professional intermediaries.

Unorganized market - this is the circulation of securities without observing the rules that are uniform for all; this is a market where the rules for concluding transactions, requirements for securities, for participants, etc. are not established, trade is carried out arbitrarily, in private contact between the seller and the buyer. There is no system for disseminating information about completed transactions.

Types of securities markets depending on from the place of trade:

• exchange;
• over-the-counter.

stock market - this is a market organized by the stock (futures, stock sections of the currency and commodity) exchange and the brokerage (brokerage) and dealer firms operating on it.

OTC market - sphere of circulation of securities not admitted to quotation on stock exchanges. The over-the-counter market deals with the circulation of securities of those joint-stock companies that do not have a sufficient number of shares or income in order to register (list) their shares on any exchange and be admitted to trading on it. It can be organized or unorganized. An organized OTC market is formed by stock shops, bank branches, as well as dealers, which may or may not be members of the exchange, investment companies, investment funds, bank branches, etc.

By types of transactions The securities market is divided into cash and futures.

cash market(cash market, spot market) is a market with immediate execution of transactions within 1-2 business days, not counting the day of the transaction.

Derivatives market(forward) is a market in which transactions of various types are concluded with a maturity exceeding two business days.

By way of trading distinguish the following types of securities markets:

• traditional;
• computerized.

Trade on computerized market conducted through computer networks that unite the respective stock intermediaries. The characteristics of this market are:

• the absence of a physical place where sellers and buyers meet, and therefore no direct contact between them;
• full automation of the trading process and its maintenance; the role of market participants is reduced mainly to entering their applications for the purchase and sale of securities into the trading system.

Trade on traditional market carried out directly on the exchange itself between sellers and buyers of securities.

By issuers and investors The securities market is divided into the following markets: government securities, municipal securities, corporate securities, securities issued (purchased) by individuals.

By specific types of securities there are bonds, bills, etc.

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

Securities market (stock market)- one of the components of the financial market, where there is a turnover of securities.

The main function of the securities market is a mechanism for securing investment in the economy. It binds those who have excess income and who need funds. The performance of the function of constantly maintaining economic growth is provided by the securities market only if there exists within it free movement of investments. The name of such freedom is liquidity.

Is the existence Quiddity is possible only with such a number of buyers and sellers that the requirements of supply and demand will be satisfied. In the developed capitalist countries, liquidity is provided by means of stock market legislation.

This legislation obliges firms (stocks and bonds traded on the stock market) to provide investors with meaningful, accurate and transparent information about themselves.

It also strictly regulates market maker firms and brokerage firms according to the rules of work. The securities market provides a place for organizations that need borrowed capital and a place for organizations that provide it.

The securities market, within the framework of a commodity economy, is similar to the market of any other commodity, since a security is also a commodity, on the other hand, it has its own characteristics that are associated with the specifics of the commodity - securities. In modern conditions, the securities market is a sector of the general financial market and therefore it has differences with the real sector of the economy that produces goods and services.

Now the vast majority of securities on the securities market do not exist in documentary or paper form, but in the so-called non-documentary or paperless form. The rights of the owner of securities, according to the rules of the law, are recorded in a special register, and the securities themselves as “physical papers” are absent.

The growth of the securities market and the growth of the world economy are interconnected. The needs of commodity production contributed to the emergence of the securities market, since the attraction of private capital and their combination with the help of shares and bonds made it possible to create and develop new sectoral economies and enterprises. Therefore, in all the capitalist countries of the world, for the development of the economy, it has become important to develop the securities market.

The securities market is an integral part of the financial market, where capital flows from one participant to another market participant. The differences between it and other sectors of the financial market (deposits, bank loans, foreign exchange, money) primarily lie in their object, and the similarities between them lie in the way the market is formed, in its relation to the market of real goods, in the importance of the circulation function. These markets are so close that in a number of cases it is possible to manage with a security as a means of payment and settlement (for example, a check, a bill of exchange). It should be noted that the banknote or bank bill was the result of the emergence of modern money.

The securities market includes: primary securities(initial) and secondary securities, state And non-state(corporate) securities. Trading in these securities covers national, regional and international markets.

Main streams

Raising capital in the securities market

For any commercial activity, external source of capital raising is the securities market. The internal financial source of the work of a company or enterprise, usually, from the total volume of financial resources, on average, half or up to three-quarters, is necessary in order to maintain and expand the circulation of goods and production. Other needs for financial resources are covered by external sources: the securities market and the bank loan market. There are estimates according to which it is known that 75% of external financial resources come from the securities market.

Capital investment in the securities market

In order to profit from the sale of securities they need to find a buyer. Therefore, the securities market is at the same time an object of investment of funds - enterprises, organizations and an area for increasing capital. As you know, it is possible to increase capital by means of bank deposits (by putting money in a bank account), by means of the foreign exchange market, or by means of investing money in some kind of productive activity (antiques, real estate, etc.). Therefore, there is competition in the securities market, which constitute other areas of capital investment, therefore, everything depends on how attractive it is from the point of view of a market participant.

Securities market structure system

WITH The structure of the securities market is very complex. It is divided into urgent and cash; computerized and public; exchange and over-the-counter; organized and unorganized; primary and secondary.

The specific features of the securities market differ from the commodity market - in terms of volume and object. A security is a specific commodity. The ability to bring in the future income - this is the consumer value of the security. Due to the continuity of the turnover of the securities market, it exceeds the market of real goods in volume (this is also affected by the way the market is formed). Goods must be produced and securities simply issued. Goods are consumed, and securities are issued for the purpose of circulation and the income contained in them. Compared with the market for services and goods, the securities market is secondary.

Exchange market - securities organized on stock exchanges are traded here.
OTC market- securities are traded here, without an intermediary - the stock exchange.

In addition to shares, other types of securities are traded outside the stock exchange. The exchange market is an organized market, and the over-the-counter market can be both an organized market and an unorganized one. In countries where a market economy is developed, at present there is only an organized securities market, represented by stock exchanges or an over-the-counter electronic trading system.

The securities market depends on the type of trading and is divided into two main forms: public and computerized.

Public market or (voice market)- this is a trading in securities where sellers and buyers (usually stock intermediaries) meet in a certain place, then there is a public, public auction or a closed auction (which are not subject to publicity).

Computerized Market is trading in securities by means of modern means of communication and computer networks. This market is characterized by a remote meeting of sellers and buyers. The location of computerized trading places are located directly or at the sellers and buyers or in the offices of firms that trade in securities. There is no public nature of the pricing process in this market, the trading process is automated and there is a continuous trading in securities.

It is divided into cash and derivatives market, since there are deadlines for transactions with securities.

Cash market (“cash” market, “spot” market) – transactions are executed immediately on this market. Technically, it happens that such an execution can be stretched for up to 1-3 days, if a physical security is required.

Futures securities market- in this market there is a delay in the execution of the transaction for weeks or months.
The cash market of securities has a large size. And futures contracts with securities are concluded mainly in the derivatives market.

Depending on what instruments are circulating in the market, it can be divided into the money market and capital market.

Money - in this market, instruments are circulated for a period of at least 1 year (short-term bonds, bank certificate, check, promissory note).

Capital market (investment market) - in this market, instruments are circulated for a period of more than 1 year (long-term and medium-term bonds, shares).

Classification of the securities market

Classification by the nature of the movement of securities

Indicators of the state of the securities market

The main sources of legal regulation of the securities market in Russia:

An integral part of the financial market, the purpose is to transform savings into investments; this is a stock market that provides long-term needs for financial resources through the circulation of stocks, bonds, certificates of deposit, treasury bills and other similar documents on it.

A security is a financial document certifying the right of ownership or a loan relationship, defining the relationship between the person who issued this document and its owner and providing for the payment of income in the form of interest or dividends, as well as the possibility of transferring monetary and other rights arising from this document, other persons. Issue (issue) securities firms, banks, the state, called issuers. The procedure for issuing securities is regulated by law.

The main features of securities are:

Profitability;

Reliability - the property of securities to avoid the possibility of losses.

Bonds are the most reliable, while common stocks are the least reliable. negotiability Securities perform the following functions: regulatory, control, information, the function of a mechanism linking various spheres and sectors of the national economy, including the real economy and finance.

The securities market is divided into primary and secondary.

In the primary market, new securities are issued and securities are placed by the issuer at a nominal price, i.e., the price indicated on the security.

In the secondary market, resale of previously issued securities takes place. Here their exchange rate (market) price is determined. This market consists of the stock exchange and the over-the-counter market.

Market structure

The stock market consists of the following components:

Market entities;

Market (exchange and over-the-counter stock markets);

Bodies of state regulation and supervision (Federal Service for Financial Markets (FFMS), Central Bank, Ministry of Finance, etc.);

Self-regulatory organizations (associations of professional participants in the securities market that perform certain regulatory functions, for example, NASD (USA), etc.).

Market infrastructure

legal;

Information (financial press, systems of stock indicators, etc.);

Depository and settlement and clearing network (separate depositary and clearing systems often exist for public and private securities);

registration network.

There are 3 stock market models depending on the banking or non-banking nature of financial intermediaries:

Non-banking model (USA) - non-banking securities companies act as intermediaries.

Banking model (Germany) - banks act as intermediaries.

Mixed model (Japan) - intermediaries are both banks and non-banking companies.

Economic role of the securities market:

1) with their help, there is a process of centralization of temporarily free funds and savings of owners to finance production and construction, their technical re-equipment, for the development of trade, transport, and the service sector.

2) Securities, acting as investment vehicles, are used not only to eliminate the shortage of capital investments and economic incentives for enterprises, but also to create financial conditions for the functioning of market infrastructure facilities: banks, stock exchanges, insurance companies, trading houses, etc.

With the help of securities issued into circulation by the state, the current budget deficit is covered, its cash execution is ensured, and uneven receipts of tax payments are smoothed out. One of the functions of the securities market is the overflow of capital, which allows for the rapid intersectoral and interregional movement of capital in order to concentrate them in technically or economically progressive industries.

The information function enables investors to see and feel the state of the economic situation in the country through the situation on the securities market, in accordance with it, orient and take prompt measures for the rational use of their capital.

The activity of the securities market can reduce the inflationary state of the economy by transferring part of consumer income for investment purposes, and thereby reducing their excessive pressure on the consumer market, it contributes to the normalization of the proportions of consumption and accumulation in the general reproduction plan.

To receive a part of the JSC's property in the event of its liquidation;

To receive information about the production and financial condition of the joint-stock company;

For the pre-emptive acquisition of new share issues.

The value of the shares, as a rule, is not redeemed by the joint-stock company and can only be converted into money again through a sale. The share is circulated as long as there is a joint-stock company types of shares-ordinary and preferred shares. The dividend on ordinary shares fluctuates depending on the financial performance of the JSC. Preferred shares give the right to receive a fixed percentage. Initially, the dividend is paid on preference shares, and the remaining amount is distributed among other types of shares. The share can be bearer and nominal. When transferring a registered share to another person, it is required to put a special transfer signature on it, which is done with the knowledge of the meeting of shareholders.

The joint-stock form of ownership allows not to withdraw funds from the enterprise if any shareholder-co-owner wishes to suddenly return the money. In this case, his shares will be sold on the secondary market, and the real capital of the enterprise will not be affected, and the production process itself will not be disturbed.

The share gives the right to participate in the management of the JSC, such a right is actually concentrated in the hands of only those investors who own a controlling stake. Only they get ownership of real assets. For other shareholders who own a small number of shares, their acquisition is only a simple loan transaction, their share of shares in practice does not give them the opportunity to effectively influence the decisions made in the JSC. Such shareholders may grant their voting rights to shares by proxy, for example, to the board of directors of the JSC.

Bonds - give the right to their owner to receive a fixed income annually, but do not provide voting rights in making management decisions. The bond is issued (issued) for a limited period of time, for example, 3.6 and 12 months. Its cost is fully repaid after this period. Bonds can be issued by the state, cities, enterprises, various funds, etc. Bond yields are commonly referred to as "coupon" payments because the bondholder cuts the coupon itself off the bond at set intervals and mails it to the issuing entity to collect the interest due.

Bonds are issued registered and bearer. Convertible bonds are also issued. Such securities give the right to exchange them for shares of the same company. A classic bond is a security with a fixed interest rate. However, in practice, more flexible varieties of this paper have appeared. There were bonds with "floating" interest. Income on them fluctuates depending on the situation on the loan capital market.

There are zero coupon bonds. No interest is paid on them. The investor receives income due to the fact that the bonds are sold at a price below the face value when issued, and at maturity they are redeemed at the face value.

A certificate of deposit is a financial document issued by credit institutions. It is a certificate of this institution on the deposit of funds, certifying the right of the depositor to receive the deposit. There are certificates of deposit on demand and term certificates, which indicate the period of withdrawal of the deposit and the amount of interest due. Certificates of deposit are universally accepted by investors, various companies and institutions.

A savings certificate is a written commitment to deposit funds by an individual in a credit institution, certifying the depositor's right to receive a deposit and interest on it. There are savings certificates registered and bearer.

Check - a monetary document of the established form, containing an unconditional order of the drawer of a check to a credit institution to pay its holder the amount specified in the check. As a rule, the payer of the check is a bank or other credit institution that has such a right. A promissory note is an unsecured promise by a debtor corporation to pay the debt and interest on it at the appointed time. This type of securities is in last place among the debt obligations of the company. Government securities are debt obligations of the government. They differ in terms of issue dates, maturity dates, and interest rates.

At present, government securities of several types are circulating in most countries. The first is treasury bills. Their maturity is usually 91 days. The second is treasury bills with a maturity of up to 10 years. The third is Treasury bonds with maturities ranging from 10 to 30 years. These types of securities are issued for public debt crediting: short-term, medium-term and long-term. Accordingly, the interest payments on them also differ.