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.
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:
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.
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.
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.
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:
Stock values are realized on the stock market.Thank You