Financial and investment markets - GovtVacancy.Net

Financial and investment markets - GovtVacancy.Net
Posted on 21-10-2022

Financial and investment markets

Investing activity contributes to the emergence of the investment market. Assets on the investment market are objects of investment activity. All objects of investment activity can be conditionally divided into three groups: objects of real, financial investment, and objects representing intangible assets.

investment market

The study of the situation and analysis of the investment market is vital for any investor since investments are associated with great risks, which entail not only a decrease in income but also the possible loss of all the invested capital.

The world practice of working on investment markets has developed a system of indicators of the attractiveness of individual investment objects. The macroeconomic analysis of the investment market provides an evaluation of the investment climate in the country and requires the consideration of the following indicators:

  • Dynamics of gross domestic product, national income, and industrial production;
  • Dynamics of the distribution of national income (accumulation and consumption);
  • development of privatization processes;
  • legislative regulation of investment activity;
  • development of individual investment markets, in particular

financial market

The financial market is a trading system for various financial instruments. The goods in this market are cash (including currency), bank loans, and securities.

In the financial market, there is an accumulation of financial resources (primary market) and their redistribution (secondary market). The following main segments are distinguished in the composition of the financial market.

foreign exchange market

 The goods in this market are objects that have a monetary value: foreign currency; securities and other stock market assets denominated in foreign currency. The participants (subjects) of the foreign exchange market are banks, stock exchanges, exporters and importers, financial institutions, and government organizations. Since 1976, the interbank foreign exchange market - Forex (Forex - free exchange) began to work. 

Money market and capital market

The money market is a market for short-term credit operations (up to one year). The composition of the money market includes: accounting, interbank and foreign exchange. Accounting transactions (purchase and sale) of short-term liabilities (Treasury bills and commercial bills) are carried out in the accounting market.

The interbank market

It is a part of the loan capital market, where temporarily free funds from credit institutions are placed in other banks, mainly in the form of interbank deposits for short periods.

The capital market includes the stock market (stock exchange) and the medium- and long-term loan market. One of the main methods of mobilizing financial resources for investment purposes is the issuance of securities.

The document that certifies, in accordance with the established form and with the obligatory data, property rights, whose exercise and transmission is only possible through their presentation, is considered a real guarantee. Values ​​include:

  • stocks and bonds of corporations;
  • government bonds;
  • I will pay;
  • checks;
  • certificates of deposit and savings;
  • bills of lading and other documents that are classified as securities by current legislation.

Stock values ​​are realized on the stock market.

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