The role and functions of financial markets in the economy. Coursework: Financial market Functions of the financial market

Financial market - This is a concept that characterizes a certain structure of relations that has developed as a result of economic activity associated with the exchange of all kinds of benefits using money. It is in this area that the main concentration of capital takes place, activities related to lending, investment of financial resources in various industries and production units are carried out.

Structure of the financial market

At the core financial market structures all sorts of cash transactions. Based on this, the following segments of this structure can be distinguished:

• credit market. This is an economic space in which there is a movement of free funds between those who need money and those who give it on certain conditions.

Participants in the credit market are citizens and companies, commercial banks (domestic and foreign), the Central Bank of the Russian Federation.

The main purpose of lending activities is to generate income through interest rates and various lending programs.

An analysis of the financial situation shows that the leading Russian banks in this area are Sberbank, Vneshtorgbank, Moscow International Bank.

• The foreign exchange market, which plays a major role in the interaction of all financial and economic entities on a global scale and servicing the international payment turnover. This is such a field of activity in which only working capital is involved, and which regulates relations between currency sellers and its buyers, that is, goods in such a market are foreign exchange funds.

Participants are banking structures, investors, individuals and legal entities . Currency market instruments - bills of exchange, certificates of deposit and banker's acceptances. This type of financial market has all the elements of a regular market, such as demand, supply and price.

• Stock market – this is a certain economic and legal system that is associated with the issuance, circulation and sale of securities. The rate of development of the economy as a whole, as well as its individual subjects, the population, financial corporations and intermediaries, foreign investors depend on the effective functioning of this market. .

The activity of this market is based on the principle of transferring cash into securities (shares, bonds, bills, debentures, etc.) and self-regulation of all professional market entities.

• The investment market is an institution that ensures and regulates the interaction and rivalry of entities involved in investment activities.

The main function of this market is the transfer of a certain amount of funds for the development and operation of facilities (industrial and social) with the help of a developed investment infrastructure.

The investment market has its own segmentation. Its components are investment resources, services and investment objects.

Participants of this types of financial markets are the state, individuals and legal entities, consulting firms, exchange intermediaries.

The functioning of the investment market contributes to the development of private entrepreneurship, international cooperation in this field of activity, insurance of investment risks. Earnings in this market are designed for the future (after investing certain funds).

• The insurance market is a specific form of regulation of monetary relations, in which the object is insurance protection.

Participants in the insurance market are insurers, insurance intermediaries, insured persons, committees of state supervision of insurance activities, professionals evaluating financial risks.

According to the legislative framework, interests (property) associated with life, health, work capacity, and compensation for harm are subject to insurance.

The classification of financial markets can be supplemented by capital markets, gold, accounting.

Financial Market Participants

The following categories of subjects of financial and economic activity fall under the definition of financial market participants:

• Sellers and buyers of various financial services;
• financial intermediaries.

The criteria for such a classification are the degree of participation of certain entities in certain financial transactions and the forms of transactions (direct and indirect).

Also depending on financial market functions the list of its participants can be expanded. So, for example, the main actors in the credit market are borrowers and lenders, in the securities market - issuers and investors, in the foreign exchange market - sellers and buyers of currency, in the insurance market - insurers and insurers.

A sufficiently large group of the main participants in the financial market are intermediaries, who are considered an intermediate link between buyers and sellers of a certain type of service.

They are engaged in brokerage activities, providing professional assistance in financial transactions, acting on behalf of the client and solely at his expense.

Almost all participants in financial markets must submit reports to the Bank of Russia, guided by a special instruction developed by Federal Service for Financial Markets.

According to this instruction, any microfinance organization can carry out electronic reporting using a special service "Personal account of a financial market participant".

The regulation on how to use this service is described step by step on the Bank's website.

Major world financial markets

The modern world economy is characterized by high rates of integration and globalization. Similar processes take place in global financial markets, where international criteria are used to evaluate the effectiveness of a particular market entity. The globalization of financial markets is carried out through the creation of a standard procedure for the circulation of funds.

However, despite the comprehensive processes of globalization, in certain areas of financial activity, one can single out their world leaders.

For example, the latest financial news indicates that London has been the leader in the financial industry for several years now, which ranks first among the foreign exchange and credit markets. The daily currency turnover here reaches 500 billion dollars. London also occupies a leading position in the securities market.

The reasons for this success are the vast experience and well-established ties with other international structures, the availability of a large number of qualified personnel and flexible state regulation methods functions of financial markets.

Rivalry London in Europe in many areas today are Zurich, Frankfurt and Paris.

Along with the European giants, the largest international financial centers are New York and Tokyo. For example, the world's largest stock exchange is located in New York. 2/3 of the assets of all international entities operating in the United States are concentrated on it.

Among the investment markets today, Brazil, China and India are gaining leadership. And in the insurance markets recently there is a new leader - Dubai.

Analytics Service The OECD notes that in many respects the success of international financial markets depends on their connection with offshore centers, which provide ample opportunities for maneuvering in various areas of financial activity.

As for the Russian financial market, its volume today is more than 370 billion dollars. Its structure is somewhat different from world financial markets. The most developed in Russia is the stock market. Recently, the investment market has been growing at a fairly rapid pace, the turnover of which today has exceeded 100 billion dollars.

The Russian foreign exchange market largely depends on the foreign policy situation in the commodity market, and, accordingly, on the exchange rate.

Role of financial markets

Financial markets act as a kind of indicators and regulators of the modern economy. The better and more efficiently financial markets function, the faster the economy develops, the mechanisms of which are brought into working condition under the influence of various capital flows.

News and reviews of the foreign exchange market

The essence of the financial market is realized in the trading of financial instruments. A large gap between investments and savings necessitates the development and functioning of financial market institutions. And the larger this gap, the more acute the need.

The processes of distribution and redistribution of financial resources are impossible in the absence of a stable functioning financial market. Its mission is to strengthen the mobilization of resources concentrated in budget funds, as well as those at the disposal of entrepreneurs and the population.

Essence of the financial market

Financial markets owe their existence to the availability of monetary resources that are temporarily free. The main purpose of these institutions is to accumulate and redistribute loan capital. They are the key to the free implementation of financial relations in society.

The economy of an administrative nature did not contribute to the development of the market, due to the fact that the formation and distribution of resources was of a directive nature. The centralized banking and budgetary system ruled out the need to develop a market infrastructure.

This institution received its development in the context of the emergence of a multifaceted and competent state policy aimed at developing the economy, gaining freedom of human economic activity.

The modern market determines the system of relations in the economic sphere, in which market laws, regulatory institutions and mass consciousness are in interaction. It can function normally only in a market economy.

The role of the financial market can be characterized by the following definitions:

• the ability to structure temporarily free funds;
• the desire to satisfy the need for money of individuals, entrepreneurs, organizations and the state;
• ensuring economic relations for the distribution of resources;
• the need to create conditions for the functioning of institutions that accompany cash flows;
• maintaining the processes that form supply and demand in the financial market;
• maintenance of relations on the exchange / distribution of resources;
• conversion of unused funds into loan capital;

All cash flow, regardless of origin, passes through the financial institutions of the market. An institution where the sale and purchase of various kinds of valuables is carried out is collectively called an exchange.

Functions of the financial market

The main functional focus of the market, based on its purpose, is to determine the value of money. Those. determination of interest rates on loan capital.

In addition to the main function, the following can be distinguished, which also relate to fin. market:

• redistribution of capital between end consumers;
• formation of market prices;
• transformation of cash flows into loan capital;
• determination of ways of using loan capital in the form of investments;
• ensuring the continuity of the reproduction process;
• acting as an intermediary between resource traders;
• reduction of various risk influences.

Types of financial markets

The implementation of market functions occurs by operating with securities on the stock exchange or through the implementation of credit and deposit banking operations. Based on this, structurally, capital markets are classified into:

• sphere of borrowed capital. The movement of resources is carried out according to the following principles: repayment, urgency, payment, security;
• stock exchange. Securities are the object of trade. Both state institutions and various non-state enterprises act as issuers;
• currency exchange. Trading takes place in foreign currencies. In addition to currency, it is possible to buy and sell financial instruments;
• insurance exchange. Trade is carried out by insurance products;
• exchange of gold and precious metals. Accordingly, the objects of sale and purchase are metals;
• exchange of services in the financial sector. Here, financial services are interpreted as a set of various forms of movement of resource funds from free circulation into investments. According to signs, it can be both credit operations, and rent and insurance.

On the basis of the novelty of financial assets, markets are:

• primary, the purpose of which is to offer new assets;
• secondary, offering for trading assets issued earlier.

At the primary stage, there is a movement of primary investments and capital investments in the economy. Participants here are issuers and investors.

On the secondary - the total number of assets does not increase, but is redistributed. Here there is a redistribution of spheres of influence and the determination of prices at the stage of primary circulation.

Financial Market Toolkit

A financial instrument is documents, contracts, the sale or transfer of which will provide a cash equivalent. A variety of tools is subject to classification according to certain criteria.

In terms of turnover, these are instruments with a short circulation period - up to 12 months, and with a long one - over 12 months.

According to the characteristic signs of obligations, documents are:

• optional. In the case of their transfer, the seller is relieved of additional costs;
• interest. Assume the need to pay interest on the use of resources. An example is the obligatory and bill form of payment;
• equity. The owner of such an instrument has the right to participate in the distribution of income.

Based on the degree of guaranteed profitability, the instruments are divided into:

• with guaranteed income. They are characterized by a 100% guarantee of repayment and receipt of the corresponding income;
• with an uncertain probability of earning a profit. Characterized by a change in the level of profitability. Such changes include a change in the situation on the market, a change in the political situation in the country or the financial situation of the issuer, etc.

The level of riskiness divides the instruments into:

• conditionally risk-free. Absolutely risk-free instruments do not exist, so this term is rather conditional and combines securities with a short turnover period, precious metals, deposit-backed securities;
• with little risk. Usually this term refers to short-term guaranteed debt securities; - moderately risky. These are instruments with an average market level of risk;
• high-risk, where the level of risk significantly exceeds the average market;
• speculative. This group combines all documentation with the highest percentage of risk.

Specificity of individual financial instruments

We detail some of the tools designed to serve the operations of various markets.

For the loan market, the main instruments are:

• assets having a monetary value;
• checks - nominal, bearer, order;
• letters of credit. This is a bank guarantee to settle with another bank or buyer. A letter of credit is issued for a certain amount. They are revocable, irrevocable, simple and transferable;

Please note that the difference between a letter of credit and an advance payment is that payment occurs only after the counterparty has received confirmation of its contractual obligations.
Bills.

Distinguish bills commercial, banking, tax, interest, discount. All types are based on a single principle of unconditional payment of obligations.

Issued bills, as a kind of securities, can be simple and transferable.

An interesting fact: only well-known companies can issue short-term bills.

Pledge documents as a kind of debt obligation.

Securities exchange instruments include:

• share - the owner's right to receive the issuer's dividends;
• bond - confirmation of the holder's right to receive a debt from the issuer in the form of a nominal value and the percentage indicated in it;
• bank certificate - a documented contribution of a legal or natural person;
• mortgages - a guarantee to the owner for the fulfillment of the terms of the mortgage agreement;
• investor's share – a security that confirms the owner's right to a share in an investment fund.

Financial market instrument - stock exchange

The need for the development of the stock exchange is due to the emergence of an increasing number of issuing organizations. The institution created for the trading of securities is the stock exchange. The fundamental purpose of a stock exchange is to enable the quick and efficient buying and selling of securities.

A functional feature of the stock exchange is the determination of the price of securities and the provision of high-quality information to exchange participants.

Securities listed on the stock exchange are:

• bonds issued at the state level;
• stock;
• derivatives.

It should be remembered that only listed securities are suitable for circulation on the stock exchange, i.e. those that meet all the requirements of this exchange.

The current level of economic development allows us to say that the financial market occupies a priority niche in the economy. The effectiveness of the state economic policy directly depends on the effectiveness of the management of the market sector.

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Functions of financial markets in the economy

Definition 1

The financial market is an organized trading system using financial instruments. They include money, credit, deposit, stock, insurance, currency, pension markets. In these markets, an important role is played by financial institutions that direct funds from the owner to the borrower, and the products are payment instruments and securities.

Like any other market, the financial market is designed to establish a direct connection between buyers and sellers of financial resources. If we consider the structure of financial markets, it will be special for each state.

Such a structure is able to most fully reflect the content and features of the financial market. In general, the financial market includes:

• currency market,
• capital market,
• money market,
• gold market.

The foreign exchange market is represented by a market in which products are objects that have a currency value.

Foreign exchange, securities, precious metals, including platinum, gold and silver, are among the objects of the foreign exchange market.

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The subjects of the foreign exchange market are a bank, an exporter and an importer, investment institutions, and a government organization.

In turn, the capital market is divided into the loan capital market and the equity securities market. This division can reflect the nature of the relationship of goods that are sold on this market by issuers of financial instruments.

When financial instruments are equity securities, then these relationships are ownership relationships, in other cases they are represented by credit relationships.

In the loan capital markets, there is a circulation of long-term financial instruments, which are provided on the terms of payment, repayment of urgency. These instruments include the long-term bank loan market and the debt assistance market.

In the markets, securities are issued, circulated and absorbed as their own securities and their substitutes, including certificates, coupons.

Participants in securities consist of issuers who issue securities to raise the necessary funds. Investors are persons who purchase securities for income, non-property or property rights.

The market is also represented by intermediaries - persons who provide services to issuers and investors in achieving their goals.

Remark 1

In the structure of the financial market, many Western economists also include the insurance market, the mortgage market, and the pension market. The market for pension accounts and the mortgage market are special markets with their own financial instruments and institutions, including savings institutions that operate on the basis of contracts. The importance of these markets is increasing every year.

Functions of the financial market

There are several functions that the financial market performs during its activities:

• Creation of conditions for a constant circulation of money when making payment transactions, which directly affects the money circulation and regulates its volumes.
• Attracting additional investors, providing chances for the resale of financial assets that the markets have.
• Creation of conditions for the movement and accumulation of resources, mobilization of internal sources of accumulation and attraction of new sources for financing.
• Implementation of the rapid distribution of resources in different areas and sectors of the state economy. This distribution can occur between the country and the enterprise, the population and the state.
• Implementation of the redistribution of capital between areas of the economy and sectors of the economy.

Thus, the main function of financial markets is to actively mobilize temporarily free funds from various sources. These funds can be mobilized from capital, which is in the form of savings, including monetary and other financial resources of the population, organizations, state bodies.

These funds can be spent on current consumption and real investments and are involved in the markets by individual participants for further effective use in the economic life of the state.

Financial markets effectively distribute the accumulated free capital among numerous end-users.

With the help of the mechanism of functioning of the financial market, the volume and structure of demand for the relevant financial assets and the timely satisfaction of demand in the context of categories of consumers who temporarily need to attract capital from external sources are ensured and revealed.

Remark 2

Financial markets carry out qualified mediation between sellers and buyers of financial instruments. The financial market operates through special financial institutions that mediate.

With the help of financial markets, market prices are formed for the relevant financial instruments, which more objectively reflect the corresponding relationship between supply and demand.

The market mechanism in accordance with various financial instruments helps to fully take into account the current relationship between supply and demand, and an appropriate level of finance is formed, which is able to satisfy the economic interests of the buyer and seller of financial assets to the maximum extent.

Remark 3

Financial markets form the conditions for minimizing commercial and financial risks. The financial market is able to develop its own mechanism for insuring price risks that arise in the conditions of unstable development of the state.

The work of financial markets makes it possible to reduce to a minimum the commercial and financial risk of the seller and buyer of financial assets, which is associated with changes. In addition, the financial market system includes the distribution of a variety of insurance services.

The role of the financial market in the economy

The topic of financial markets in the light of recent events is relevant. This is due, first of all, to the financial crisis, which has enslaved almost the entire world.

Specifically, in Russia, the problem became urgent after the collapses in the government securities market, as well as unrest in the corporate market.

Today it has become necessary to conduct a preliminary assessment of market prospects and the situation of the macroeconomics as a whole.

The financial market is a kind of generating device of countless indicators. From these indicators, one can add up a picture that reflects the overall level of the economy and its state in the state today.

The main task of this kind of activity is the study of the theoretical aspects of the stock market. Conducting analytical work will help to study the state of the two market sectors.

You can also make a forecast and an objective assessment of the future prospects of the Russian market in cooperation with the global stock market.

The forecast will be based on the conclusions of specialized analytical agencies and employees of the Ministry of Finance of the Russian Federation.

Essence, role and functions of the financial market

The market can be characterized by buyers and realtors who are independent in their own actions regarding interaction with each other. The buyers include individuals, various firms and intermediaries who are engaged in the purchase of goods. This is done for the purpose of its further resale.

Thanks to the market, there is a rational distribution of resources. It fully affects the structure of production and the volume of manufactured products. Market competition heals the economy by eliminating uncompetitive firms whose activities are unprofitable for the state.

Market competition also forces the consumer of the product to choose a rational consumer structure. Prices set and maintained in the market are considered as a carrier of economic information. All of the above determines the main role of the market in the state economy.

The financial market is a structured mechanism for the distribution of capital. The distribution is between the lender and the borrower. Intermediaries help them in this. The whole operation is based on the presence of supply and demand for a given capital.

In the financial market, various transactions with money are made. These include services for the provision of credit funds and their mobilization. The leading role is occupied by financial institutions that direct capital flows to borrowers from owners.

As a commodity here, you can see cash along with securities. Its purpose is to create business relationships between buyers and sellers of a financial resource.

The partnership between the financial market and government agencies is beneficial for both parties. State organizations can be a borrower or a lender. It has the right to establish its own rules for the proper functioning of the market, exercising close control over it.

The state can officially implement the credit and financial policy in the market. The state of the national economy depends on the latter. It is advisable for the state to take measures to protect and encourage the development of the financial market. The specifics of cooperation between sellers and buyers of an asset of finance depends on the laws of the economy established by the state.

The financial market in the course of its activity performs a number of functions:

It creates conditions for the constant rotation of money during the execution of payment transactions. This directly affects the cash flow, regulating its volume.

It attracts additional investors, and also provides chances for the resale of the financial asset that the market has. These two factors greatly increase the liquidity of the financial market.

Creates conditions for moving accumulations of free financial resources;
It mobilizes internal sources of financial accumulation and attracts new sources of financing.

It can quickly redistribute the resources of various spheres and branches of the state economy. In addition, the exchange can be between the country and the AO, the population and the state.

Carries out the redistribution of capital between the spheres of the economy and sectors of the economy.

The main tasks of the financial market

The financial market prioritizes over the controlling and managing bodies. It resolves disputes that arise among market participants.

Creates norms and charters of trade, as well as further participation in it. Management of the sectoral and territorial level of the market economy is being carried out. Depending on changes in the industry average rate of income, an inter-sectoral "transfusion" of funds is carried out.

The financial market also:

The flow of exchange rates for financial assets is monitored and regulated. This is done by creating a balance between the supply and demand of the consumer with the seller.

The motivation of different persons to be accomplices in the financial market is being done. Potential accomplices are offered the rights and opportunities to manage firms, all the chances for accumulating their own money capital, and so on.
Compliance with the norms established by law is monitored.

A network of establishments for the sale of financial assets is being created.

Market participants have a profit from transactions with assets.

Reduces risk when trading financial assets.

Engaged in bringing market news to the subjects of the economy.

Concentrates and centralizes money and production.

Structural components of the financial market

Depending on the subject of a trade transaction in the financial market, there are:

money markets. The occupation of this market structure is the movement of short-term capital transactions. They have the highest degree of liquidity. The subject of bargaining is money, deposits and so on.

credit markets. The type of activity of the credit market consists in medium-term or long-term transactions, as well as investing in profitable assets.

Jewelry market. Economic transactions directly related to the rotation of expensive stones and metals.

Asset market. Business relations related to the mobilization of funds through the manufacture of securities and their further turnover.

Currency market. It manifests itself during transactions for the sale and purchase of the currency of other countries or currency values.

The above types of markets are interconnected with each other. However, each of them has its own specifics of work and the norms of transactions. According to the timing of financial transactions, the market is divided into capital and money. The main task of the first is to extract the greatest income in the medium or long term.

The main purpose of money markets enables banks and commercial firms to manage the liquidity of their own assets. These institutions use different adjustment methods. They may place loans of cash or buy and sell worthwhile securities.

The financial market exists only with the favorable functioning of primary and secondary markets.

The primary market is engaged in the distribution or redistribution of monetary resources of the borrower and lender. Its competence includes the issuance of loans and the sale of securities.

The obligations of the secondary market are the resale of valuable assets, the continuity of the functioning of the entire financial market.

What is the subject of financial markets?

Legal organizations, together with individuals involved in the sale and purchase of financial assets, their maintenance in circulation, and settlements, are called the subject of the financial market. They interact with each other in economic terms for the purpose of further turnover of financial assets.

The regulation of the market activity at the state level is carried out by the president, the government, the Ministry of Finance, as well as their local bodies. The organizations that serve the market collectively form its infrastructure.

The well-coordinated work of these organizations is the key to the successful operation of the entire financial market. Financial market participants include state regulatory and supervisory bodies, organizations that serve the market, and organizations that independently regulate their own activities.

They are conditionally divided into non-professionals and professionals.

Professional market participants include all legal entities that have been regulated as professional participants with licenses.

The main features of a well-developed financial market include:

Stable regulatory framework; A wide range of its participants; Purity of information on market transactions; Honesty and decency of all market participants without exception;

Well-developed infrastructure of the above organizations.

If the market has the presence of all these points, then it is able to provide all its participants with the rapid use of financial resources.

The stock market is a very important part of the financial system. It helps to increase the efficiency of production and its profitability. The market helps stimulate the state's economy and better share investments.

To develop the economy of an industry, the first step is to raise the market for valuable assets using various management tools. This move allows step by step to get away from the debt economy model. In turn, only the full return of the industries produced can give real results.

The work was added to the site site: 2016-03-13

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" xml:lang="en-EN" lang="en-EN">LECTIONS

" xml:lang="en-EN" lang="en-EN">BY DISCIPLINE

" xml:lang="en-EN" lang="en-EN">FINANCIAL MARKET

" xml:lang="en-EN" lang="en-EN">
THEME 1

" xml:lang="en-EN" lang="en-EN">ROLE OF THE FINANCIAL MARKET IN THE ECONOMY

" xml:lang="en-EN" lang="en-EN">1.1. The concept of the financial market and its structure.

" xml:lang="en-EN" lang="en-EN">1.2. Financial market entities.

" xml:lang="en-EN" lang="en-EN">1.3. Characteristics of financial market objects.

" xml:lang="en-EN" lang="en-EN">1.4. Legislative regulation of the financial market.

1. " xml:lang="en-EN" lang="en-EN">The concept of the financial market and its structure

" xml:lang="en-EN" lang="en-EN">Financial market" xml:lang="en-EN" lang="en-EN"> is a set of economic relations related to the distribution of financial resources, the sale and purchase of temporarily free cash and securities.

" xml:lang="en-EN" lang="en-EN">So, the financial market" xml:lang="en-EN" lang="en-EN"> - this is the relationship between the population, producers and the state regarding the redistribution of free cash on the basis of complete economic independence, the mechanism of self-regulation of the market economy, intra- and intersectoral movement of financial resources.

" xml:lang="en-EN" lang="en-EN">As an economic category, the financial market expresses economic relations between economic entities regarding the realization of value and consumer value contained in financial assets. These economic relations are determined by objective economic laws and the financial policy of the state, the influence of political parties that ultimately form the essence of the financial market, that is, connections and relations both in the market itself and in its relationship with other economic categories.Economic relations and relationships that arise in the financial market are determined by objective economic laws, the financial policy of the state and the real need of economic entities to save and invest, lend and accept money.

" xml:lang="en-EN" lang="en-EN">Concept" xml:lang="en-EN" lang="en-EN">"financial market"" xml:lang="en-EN" lang="en-EN"> is a self-regulating system of markets where supply and demand for various financial assets and services related to the acquisition of assets is concentrated; this is the sphere of economic relations between market entities in the process of formation and implementation of demand and supply of financial assets From an organizational point of view, the financial market is a system of independent separate markets (segments), in each of which there are markets for specific types of financial assets (segments).

" xml:lang="en-EN" lang="en-EN">The state is responsible for creating an environment that will contribute to the effective development of financial systems. This implies the need to solve problems related to:

" xml:lang="en-EN" lang="en-EN">- Economic incentives and macroeconomic environment;

" xml:lang="en-EN" lang="en-EN">- Financial Sector Policy;

" xml:lang="en-EN" lang="en-EN">- legal and regulatory infrastructure;

" xml:lang="en-EN" lang="en-EN">- Establishing the boundaries of the service sector of the financial sector;

" xml:lang="en-EN" lang="en-EN">- Reliability and competitiveness of financial institutions.

" xml:lang="en-EN" lang="en-EN">Financial Market Functions

" xml:lang="en-EN" lang="en-EN">The essence and role of the financial market in the economy of the state is most fully disclosed in its functions, the main of which are:

" xml:lang="en-EN" lang="en-EN">1) motivated mobilization of savings of individuals and legal entities, government agencies, foreign investors and the transformation of accumulated funds into loan and investment capital;

" xml:lang="en-EN" lang="en-EN">2) realizing the value embodied in financial assets and organizing the process of bringing them to consumers (buyers, depositors)." xml:lang="en-EN" lang="en-EN">It manifests itself through the creation of a network of various institutions for the sale of financial assets (banks, stock exchanges, brokerage houses, investment funds, stock shops, insurance companies, etc.).. Its task is to create normal conditions for the sale of funds (savings) of consumers (buyers, depositors) in exchange for financial assets that interest them;

" xml:lang="en-EN" lang="en-EN">3) redistribution of funds of enterprises on mutually beneficial terms for the purpose of their efficient use;

" xml:lang="en-EN" lang="en-EN">4) financial services for participants in the economic cycle and financial support for the processes of investing in production, expansion of production and equity participation based on determining the most efficient directions for using capital in the investment sphere;

" xml:lang="en-EN" lang="en-EN">5) the impact on money circulation and the acceleration of capital turnover, which contributes to the activation of economic processes. This function is reduced to the creation by the financial market of conditions for the continuous movement of money in the process of implementation various payments and regulation of the volume of money supply in circulation.Through this function, the implementation of the state monetary policy in the financial market is carried out;

" xml:lang="en-EN" lang="en-EN">6) the formation of market prices for certain types of financial assets. Satisfying a significant amount and a wide range of investment needs of subjects, the mechanism of the financial market through the pricing system for certain investment instruments reveals the most effective areas and directions of investment flows from the standpoint of ensuring a high level of return on capital used for this purpose;

" xml:lang="en-EN" lang="en-EN">7) insurance activities and creating conditions for minimizing financial and commercial risks;

" xml:lang="en-EN" lang="en-EN">8) transactions related to the export-import of financial assets and other financial transactions related to foreign economic activity;

" xml:lang="en-EN" lang="en-EN">9) lending to the government, local self-government bodies by placing government and municipal securities;

" xml:lang="en-EN" lang="en-EN">10) distribution of state credit resources and their placement among the participants of the economic cycle;

" xml:lang="en-EN" lang="en-EN">11) financial support for investment processes - it consists in creating conditions by the financial market for attracting (concentrating) the financial resources necessary for the development of the production and trade process by the entrepreneur. The process of attracting financial resources contains both the accumulation of capital and its placement in debt (loan), for rent (seleng);

" xml:lang="en-EN" lang="en-EN">12) providing conditions for minimizing financial risks.

" xml:lang="en-EN" lang="en-EN">In organizational terms, the financial market" xml:lang="en-EN" lang="en-EN"> is a set of market financial institutions that accompany the flow of funds from the owners of financial resources to borrowers. These include commercial banks, currency and stock exchanges, investment funds of companies, leasing organizations, pension and insurance funds, the national bank, over-the-counter trading systems, settlement and clearing organizations, depositories, investment managers, registrars, and other financial institutions that, in accordance with applicable law, can carry out operations in the financial market.

" xml:lang="en-RU" lang="en-RU">Developed financial markets reflect stable economic growth, relatively homogeneous development of industries and regions, low inflation, reasonable taxation regimes, stable legal framework, favorable political climate in the country and a certain balance of financial and economic interests in society.

" xml:lang="en-EN" lang="en-EN">Among the most significant prerequisites for the formation of the financial market in Ukraine, the following should be highlighted: the development of an alternative sector of the economy, the formation of a market infrastructure, the commercialization of the banking sector, the abolition of the monopoly of foreign trade, preferential the procedure for taxation of income from securities, the absence of forceful state regulation of operations with securities - all this makes it possible to strengthen effective demand, which is already being formed on a market basis.

" xml:lang="en-EN" lang="en-EN">Trade in financial resources can be carried out in various forms and by various methods, which determines the branching and diversity of the market. Its structuring is carried out according to two main features: the form of resources and the organization of trade in them (Table 1.1).

" xml:lang="en-EN" lang="en-EN">Foreign exchange market performs the following functions:

" xml:lang="en-EN" lang="en-EN">- Timely implementation of international payments;

" xml:lang="en-EN" lang="en-EN">- Regulation of exchange rates;

" xml:lang="en-EN" lang="en-EN">- Diversification of foreign exchange reserves;

" xml:lang="en-EN" lang="en-EN">- Currency risk insurance;

" xml:lang="en-EN" lang="en-EN">- Receiving profit by participants of the foreign exchange market in the form of a difference in exchange rates;

" xml:lang="en-EN" lang="en-EN">- Pursuing a monetary policy based on state regulation of the national economy and the implementation of a coordinated policy within the framework of the world economy.

" xml:lang="en-EN" lang="en-EN">The exchange rate is the basis for the functioning of the foreign exchange market - the ratio at which one currency is exchanged for another, that is, the "price" of the monetary unit of one country, expressed in currency units of another country.Foreign exchange rates are established by quoting them in accordance with the current legislation and practice that has developed.

" xml:lang="en-EN" lang="en-EN">In a different approach, the following are distinguished in the structure of the financial market:

" xml:lang="en-EN" lang="en-EN">- Insurance market" xml:lang="en-EN" lang="en-EN">, where the object of purchase and sale is insurance protection in the form of various insurance products;

" xml:lang="en-EN" lang="en-EN">- Gold market" xml:lang="en-EN" lang="en-EN"> (and other precious metals: silver, platinum), where precious metals are the object of purchase and sale. In Ukraine, the gold market is the least developed segment of the financial market for lack of its legal regulation;

" xml:lang="en-EN" lang="en-EN">- Financial services market" xml:lang="en-EN" lang="en-EN"> is a sphere of diverse services provided to subjects of financial relations - business structures, the state and citizens - in the course of their financial activities. The key subjects of this market are various financial institutions and organizations providing related services.

1. " xml:lang="-none-" lang="-none-">Subjects" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">financial market

" xml:lang="-none-" lang="-none-">On" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">markets" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">valid" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">subjects" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">market" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">participating in" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">trading operations" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">tools" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">financial market" xml:lang="en-EN" lang="en-EN">.

" xml:lang="-none-" lang="-none-">Subjects" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">financial market" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">are classified" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">by form" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-"> and functions" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">(" xml:lang="en-EN" lang="en-EN">Fig. 1.1).

" xml:lang="en-EN" lang="en-EN">Fig. 1.1. Classification of financial market entities

" xml:lang="en-EN" lang="en-EN">The main subjects of the market are" xml:lang="en-EN" lang="en-EN"> households, firms, enterprises, financial institutions, government.

" xml:lang="en-EN" lang="en-EN">Through financial institutions (banks, insurance companies, trust funds) savings of households, firms and enterprises allow other business entities to meet the need for funds to expand their activities.

" xml:lang="en-RU" lang="en-RU">A household is an economic unit consisting of one or more people who run a common household that provides the economy with factors of production and uses the funds earned from this for the current consumption of goods and services and savings to meet their future needs.

" xml:lang="en-EN" lang="en-EN">The household plays an extremely important role in the system of the financial services market. It is one of its subjects, since the part of the income that is not used by the household during the current period turns into savings and can, in the presence of an appropriate financial mechanism, become a powerful source of the country's economic growth.

" xml:lang="en-EN" lang="en-EN">The sphere of household finance is an integral part of the financial system of the country. These are monetary funds formed by the inhabitants of the country from income received on the basis of labor, economic and other activities The main purpose of finance in this area is the formation of the revenue side of the general family budgets (budgets of individual citizens) and the use of these incomes for the purposes of current consumption and accumulation.

" xml:lang="en-EN" lang="en-EN">Population savings" xml:lang="en-EN" lang="en-EN"> - this is that part of the income of family farms that is not used to purchase goods and services, as well as to pay taxes. At the same time, funds intended for accumulation may be invested by citizens in various types of profitable financial instruments.

" xml:lang="en-EN" lang="en-EN">The sphere of household finance ensures the flow of funds to the national and regional (local) budgets in the form of taxes, fees and other obligatory payments, as well as investments in various valuable securities (other financial assets) issued by various state bodies and individual enterprises.

" xml:lang="en-EN" lang="en-EN">The household performs three main functions in the economy: consumption, supply of production factors, savings.

" xml:lang="en-GB" lang="en-GB">The most common form of savings is to use part of your income to save money in cash or savings banks or to buy securities.

" xml:lang="en-RU" lang="en-RU">If households spend on average less than they earn during the year, then enterprises and firms annually spend a little more than they receive from the sale of their products.

" xml:lang="en-EN" lang="en-EN">The state, by providing credit and receiving loans, plays a decisive role in the financial market. It exercises its influence through the management of interest, money supply, loans, and the exchange rate.

" xml:lang="en-EN" lang="en-EN">The public sector is connected to the entire economic system through taxes, government purchases and loans.

" xml:lang="en-RU" lang="en-RU">The influence of the state on the process of circulation of financial assets in the financial market is reflected through such a source as fiscal policy. The degree of perfection of the tax system largely determines the effectiveness of measures to exit the economy from a systemic crisis.In Ukraine, an ill-conceived fiscal policy has led to increased concealment by national producers of their income and the transfer of money to external financial markets.

" xml:lang="en-GB" lang="en-GB">By increasing direct taxes, the government can also increase the amount of money that is withdrawn from households. Households are forced to cut either savings or consumption spending, resulting in is a decrease in the national product.This can occur both due to a decrease in the income that firms receive from the sale of consumer goods, and indirectly, due to a decrease in the amount of savings, and therefore the amount of investment funds that firms can spend on the purchase of capital goods. Direct taxes stimulate both the growth of savings and the growth of consumption, positively influencing the growth of the national product.

" xml:lang="en-EN" lang="en-EN">The main types of financial intermediaries are presented in Table 1.3.

" xml:lang="en-EN" lang="en-EN">Table 1.3. Types of financial intermediaries

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" xml:lang="uk-UA" lang="uk-UA">s/n	" xml:lang="uk-UA" lang="uk-UA">Types of financial intermediaries	" xml:lang="uk-UA" lang="uk-UA">See the activity with valuable papers
" xml:lang="uk-UA" lang="uk-UA">1	" xml:lang="uk-UA" lang="uk-UA">Price paper merchants	" xml:lang="uk-UA" lang="uk-UA">A, B, C, D (F)
" xml:lang="uk-UA" lang="uk-UA">2	" xml:lang="uk-UA" lang="uk-UA">Investment funds	" xml:lang="uk-UA" lang="uk-UA">A, D (A)
" xml:lang="uk-UA" lang="uk-UA">3	" xml:lang="uk-UA" lang="uk-UA">Trust Partnerships	" xml:lang="uk-UA" lang="uk-UA">A, B, C, D, F (A, F, F)
" xml:lang="uk-UA" lang="uk-UA">4	" xml:lang="uk-UA" lang="uk-UA">Insurance companies	" xml:lang="uk-UA" lang="uk-UA">(F)
" xml:lang="uk-UA" lang="uk-UA">5	" xml:lang="uk-UA" lang="uk-UA">Purchaser Associations	" xml:lang="uk-UA" lang="uk-UA">(F)
" xml:lang="uk-UA" lang="uk-UA">6	" xml:lang="uk-UA" lang="uk-UA">Banks	" xml:lang="uk-UA" lang="uk-UA">A, B, C, D

• " xml:lang="en-EN" lang="en-EN">Types of activities with securities: A - commercial; B - commission; C - issue; D - consulting; E - joint investment by issuing investment certificates; E - representative; F - intermediary.

" xml:lang="en-EN" lang="en-EN">The main function of financial intermediaries is to help transfer funds from potential savers to potential borrowers and vice versa, their activities are beneficial for both savers (investors) and borrowers , namely:

" xml:lang="en-EN" lang="en-EN">- There is no need to look for each other;

" xml:lang="en-EN" lang="en-EN">- The risk of loan default or inefficient investment is reduced;

" xml:lang="en-EN" lang="en-EN">- From the previous one follows the growth of the interest income of zaoschadzhuvan;

" xml:lang="en-EN" lang="en-EN">- The borrower's total costs for obtaining a loan are reduced by reducing the moral, physical losses and time spent on attracting capital from several savers to obtain the required loan amount;

" xml:lang="en-RU" lang="en-RU">- Small zaoschadzhuvans get the opportunity to participate in a business that gives high incomes (compared to lending a small amount), but which was unattainable for them due to for the need for significant investment;

" xml:lang="en-EN" lang="en-EN">- Often for savers, it is more attractive to receive a guaranteed income on their capital (for example, in the form of bank interest, income on bonds, receiving pension rights) than risk participation in not always reliable projects (for example, the purchase of shares), etc.

" xml:lang="en-EN" lang="en-EN">1.3." xml:lang="en-EN" lang="en-EN">" xml:lang="en-EN" lang="en-EN">Characteristics of financial market objects

" xml:lang="en-EN" lang="en-EN">Financial market commodities are cash and securities, which are objects of purchase and sale on the market.

" xml:lang="en-EN" lang="en-EN">From an economic point of view, cash is the most liquid asset.

" xml:lang="en-EN" lang="en-EN">- The main commodity of the market, a kind of subject of sale of this market are securities. They, as financial market instruments, are documents-evidence of a debt obligation or right property.

" xml:lang="en-EN" lang="en-EN">In many of their functions, securities are identical to money, which is an economic characteristic. Thus, the issuer of many securities and money is the same - the state and its authorized bodies. Issue both are regulated by the Government, the Ministry of Finance, the Central Bank, and some other bodies.Both money and securities are sometimes issued to cover the state budget deficit, they are strictly standardized, have a certain degree of protection against counterfeiting.

" xml:lang="en-EN" lang="en-EN">1.4. Legislative regulation of the financial market

" xml:lang="en-EN" lang="en-EN">The legal norms of the financial market are gradually being formed in Ukraine. Laws regulating the market and establishing control over it are being created gradually, as market relations in general and financial relations develop in particular.

" xml:lang="en-EN" lang="en-EN">The laws of Ukraine establish the foundations for the creation and operation of financial, money, credit and investment markets, the procedure for creating and repaying state internal and external debt, the procedure for issuing and circulation of state securities securities The main ones are

" xml:lang="en-EN" lang="en-EN">1. Law of Ukraine "On Securities and Stock Exchange".

" xml:lang="en-EN" lang="en-EN">2. Law of Ukraine "On State Regulation of the Securities Market in Ukraine".

" xml:lang="en-EN" lang="en-EN">3. Law of Ukraine "On the National Depository System and Peculiarities of Electronic Circulation of Securities in Ukraine".

" xml:lang="en-EN" lang="en-EN">4. Decree of the Verkhovna Rada of Ukraine "On the Concept of Functioning and Development of the Ukrainian Stock Market".

" xml:lang="en-EN" lang="en-EN">5. Decree of the President of Ukraine "On Investment Funds and Investment Companies".

" xml:lang="en-EN" lang="en-EN">In addition to the laws codified by the Verkhovna Rada, regulatory legal acts of the executive branch are mandatory. Ministries, departments, committees, the NBU, the SSMSC and other bodies are also annually issue orders, decisions, explanations, resolutions, instructions for the purpose of regulating corporate activities, registering securities, organizing depository activities, regulating joint investment activities, etc.

" xml:lang="en-EN" lang="en-EN">Financial relations between market participants must be formalized by legal documents - contracts or contracts, each of which has the appropriate mandatory details. Disputes arising from the failure to fulfill obligations under the agreement of one of the parties shall be resolved in arbitration.

" xml:lang="en-EN" lang="en-EN">
THEME 2

" xml:lang="en-EN" lang="en-EN">FINANCIAL POLICY OF THE STATE AND FINANCIAL MECHANISM

" xml:lang="en-EN" lang="en-EN">2.1. Concept and types of financial policy.

" xml:lang="en-EN" lang="en-EN">2.2. Characteristics of the modern financial policy of Ukraine.

" xml:lang="en-EN" lang="en-EN">2.3. Financial mechanism.

" xml:lang="en-EN" lang="en-EN">2.4. Financial management in a market economy.

" xml:lang="en-EN" lang="en-EN">2.1. Concept and types of financial policy

" xml:lang="en-EN" lang="en-EN">Financial policy is an integral part of the state's economic policy." xml:lang="en-EN" lang="en-EN">" xml:lang="en-EN" lang="en-EN">Financial policy" xml:lang="en-EN" lang="en-EN"> -" xml:lang="en-EN" lang="en-EN">a set of actions and activities carried out by the state within the limits of the functions and powers granted to it in the field of financial activities of business entities and financial institutions, citizens and the state itself in order to solve certain tasks and achieve the goals.

" xml:lang="en-EN" lang="en-EN">Financial policy specifies the main directions of economic development; determines the total amount of financial resources, their sources, ways of using; develops mechanisms for regulating and stimulating socio-economic processes by financial methods .

" xml:lang="en-EN" lang="en-EN">The objective of the financial policy can be formulated as follows:

" xml:lang="en-EN" lang="en-EN">- Providing conditions for the formation of the maximum possible financial resources;

" xml:lang="en-EN" lang="en-EN">- Establishing a rational from the point of view of the state mechanism for the distribution and use of financial resources;

" xml:lang="en-EN" lang="en-EN">- Organization of regulation and stimulation of economic and social processes by financial methods;

" xml:lang="en-EN" lang="en-EN">- Formation of the financial mechanism and its development in accordance with the goals and strategies that are constantly changing;

" xml:lang="en-EN" lang="en-EN">- Creation of an effective and efficient financial management system.

" xml:lang="en-EN" lang="en-EN">The assessment of the results of the state's financial policy is based on its compliance with the interests of society, most social groups, as well as the degree of achievement of the tasks set.

" xml:lang="en-EN" lang="en-EN">The type of financial policy is determined by the features of the current stage of development of the economy, the social sphere, the interests of the ruling parties, as well as theoretical concepts that affect the economic and political course of the state.

" xml:lang="en-EN" lang="en-EN">There are three types of financial policy: classical, regulatory, planning and directive.

" xml:lang="en-EN" lang="en-EN">The classical type of financial policy reigned in the 20s of the XX century. Its origins were the classics of political economy Adam Smith and David Ricardo.

" xml:lang="en-EN" lang="en-EN">The basis of classical financial policy is non-intervention of the state in the economy, preservation of free competition, the use of the market mechanism as the main regulator of economic processes. Such a policy led to the restriction of government spending and taxes , providing conditions for the formation and execution of a balanced budget.Public expenditures were mainly in the form of military spending, interest payments on public debt, its repayment.The tax system included the most simple and effective in terms of collecting indirect and property taxes.Management of financial activities in the state was concentrated in the Ministry of Finance (Treasury).

" xml:lang="en-EN" lang="en-EN">Go to" xml:lang="en-EN" lang="en-EN">regulatory financial policy" xml:lang="en-EN" lang="en-EN">is associated with the aggravation of economic, political, social problems in the 20s of the XX century. It allowed to ensure a stable economic growth, high level of employment, sufficient funding for social spending in most European countries.

" xml:lang="en-EN" lang="en-EN">The economic theory of John M. Keynes on the need for state intervention and regulation of the cyclical development of the economy and social relations in order to ensure full employment of the population is the basis of the regulatory financial policy. The main instruments of state intervention in the economy are government spending, which generates additional demand, ultimately ensuring the revival of entrepreneurial activity, the creation of new jobs, the growth of national income and the reduction of unemployment.

" xml:lang="en-EN" lang="en-EN">In contrast to the classical financial policy, the main mechanism of regulation is the personal income tax. It ensures the withdrawal of income from business entities in the form of savings. state budget with a high level of income Budget deficit is used to regulate the economy The role of the loan capital market as a source of budget revenues is growing A large-scale policy of deficit financing is being pursued, when the state actively uses medium and long-term loans.

" xml:lang="en-EN" lang="en-EN">Financial management is carried out by independent specialized services. They carry out budget planning, tax control, and public debt management.

" xml:lang="en-EN" lang="en-EN">In the 70s of the XX century, on the basis of the neoclassical direction of economic theory, the regulatory financial policy was further developed. As a result of this, the regulation of the economy becomes multi-purpose, i.e. In addition to economic growth and employment, the state regulates money circulation, the exchange rate, the social sphere, and the restructuring of the economy.

" xml:lang="en-EN" lang="en-EN">The main goal is to reduce the volume of national income that is redistributed through the financial system, reduce the budget deficit, stimulate the growth of savings, reduce tax pressure.

" xml:lang="en-EN" lang="en-EN">In countries with an administrative-command system, it is used" xml:lang="en-EN" lang="en-EN">planning-directive financial policy" xml:lang="en-EN" lang="en-EN">.

" xml:lang="en-EN" lang="en-EN">The Soviet Union was a vivid example of such a policy. the maximum concentration of financial resources is needed to finance emergency government spending.

" xml:lang="en-EN" lang="en-EN">The planned management system, based on the state form of ownership, made it possible to carry out direct directive management of the entire economy, including finances. The main goal of such a financial policy is to achieve maximum concentration of financial resources from the state in the person of the central authorities.Further redistribution was carried out in accordance with the main directions of the state plan.Unproductive use of state budget funds was characteristic.Significant resources went to finance the defense sectors of the economy, military spending.There was a residual principle of financing the social sphere. The state fully regulated the financial activities of enterprises for the removal of net income through turnover tax and subsequent individual deductions from profits.

" xml:lang="en-EN" lang="en-EN">The maximum amount of all expenses was determined and the excess profits were withdrawn to the budget. Sometimes up to 80% of the net income of the enterprise came to the budget.

" xml:lang="en-EN" lang="en-EN">The use of public funds was regulated by income tax and often forced state loans.

" xml:lang="en-EN" lang="en-EN">The budgets of local authorities depended on the volumes that were allocated to them from higher budgets in the order of budget regulation. Independent sources of filling local budgets were limited and, as a rule, did not exceed 10-15% of the total income.

" xml:lang="en-EN" lang="en-EN">Finance was managed from a single center - the Ministry of Finance.

" xml:lang="en-RU" lang="en-RU">The use of a planned and directive financial policy in the conditions of normal functioning of the economy leads to negative consequences. As the experience of almost all former socialist countries shows, the results of such a policy were a decrease in efficiency production, slowing down the development of the social sphere, a sharp deterioration in the financial situation of the state.

" xml:lang="en-EN" lang="en-EN">Financial policy reflects all aspects of the functioning of finance and covers:

" xml:lang="en-EN" lang="en-EN">1." xml:lang="en-EN" lang="en-EN">Monetary (monetary) policy" xml:lang="en-EN" lang="en-EN">

" xml:lang="en-EN" lang="en-EN">2." xml:lang="en-EN" lang="en-EN">Fiscal policy" xml:lang="en-EN" lang="en-EN"> -" xml:lang="en-EN" lang="en-EN">characterizes

" xml:lang="en-EN" lang="en-EN">Budget Policy" xml:lang="en-EN" lang="en-EN"> -" xml:lang="en-EN" lang="en-EN">this is the activity on the formation of the state budget, its balancing, distribution of budgetary funds, etc." xml:lang="en-EN" lang="en-EN">.

" xml:lang="en-EN" lang="en-EN">Financial policy can be classified according to a number of criteria:

;text-decoration:underline" xml:lang="en-EN" lang="en-EN">1. Financial policy depending on the length of the period" xml:lang="en-EN" lang="en-EN">," xml:lang="en-EN" lang="en-EN"> for which it is designed, and the nature of the tasks to be solved, includes financial strategy and financial tactics.

" xml:lang="en-RU" lang="en-RU">Financial strategy is a policy designed for the long term and solving global problems of socio-economic development. The direction of the financial strategy is determined by the specific tasks of the development of society at a certain historical stage of development In the conditions of the economic crisis, the main task is to provide financial support for macroeconomic stabilization, in the conditions of economic development - to achieve optimal GDP growth rates.At the same time, under any conditions, the basis of the financial strategy is to reliably meet the needs of the economy with financial resources and create sufficient incentives for the efficient operation of business entities.

" xml:lang="en-EN" lang="en-EN">Financial tactics is a current policy aimed at solving specific problems of the corresponding period arising from the developed financial strategy. It is carried out through the reorientation of financial resources and changes in the organization of the financial Financial tactic is more mobile, because it consists in a timely response to economic problems and imbalances, its main task is to achieve strategic development goals.

" xml:lang="en-EN" lang="en-EN">Financial policy is implemented in two directions: regulation of financial relations in society and implementation of current financial activities. Regulation of financial relations characterizes the strategy of financial policy, and current financial activity characterizes its The basic element is the regulation of financial relations, which can be carried out by the state in legislative and administrative forms.

" xml:lang="en-EN" lang="en-EN">Legislative regulation consists in the adoption of relevant legislative acts that establish the subjects of financial relations, their rights and obligations, the procedure and methods for carrying out financial activities, etc.. Administrative regulation provides for the granting of the rights to regulate financial relations to government bodies.The main form of financial policy development is the legislative regulation of financial relations, since it puts financial activity on a stable legal basis, which makes financial policy sustainable.

;text-decoration:underline" xml:lang="en-EN" lang="en-EN">2.;text-decoration:underline" xml:lang="en-EN" lang="en-EN">Depending on the degree of legislative or administrative regulation of financial relations;text-decoration:underline" xml:lang="en-EN" lang="en-EN">," xml:lang="en-EN" lang="en-EN"> which is characterized by the share of income that is distributed and consumed in accordance with applicable laws or administrative decisions, there are three types of financial policy:

" xml:lang="en-EN" lang="en-EN">1. Strict regulation" xml:lang="en-EN" lang="en-EN">

" xml:lang="en-EN" lang="en-EN">2. Moderate regulation" xml:lang="en-EN" lang="en-EN">

" xml:lang="en-EN" lang="en-EN">3. Minimum Restrictions Policy" xml:lang="en-EN" lang="en-EN">

;text-decoration:underline" xml:lang="en-EN" lang="en-EN">3.;text-decoration:underline" xml:lang="en-EN" lang="en-EN">Depending on the tasks the financial policy is aimed at;text-decoration:underline" xml:lang="en-EN" lang="en-EN">," xml:lang="en-EN" lang="en-EN"> it is divided into the following types:

" xml:lang="en-EN" lang="en-EN">1." xml:lang="en-EN" lang="en-EN">Stabilization Policy" xml:lang="en-EN" lang="en-EN"> is aimed at maintaining macroeconomic balance based on constant production volumes with price stability. Its implementation is based on ensuring stable volumes of financial resources with constant proportions of distribution and redistribution of income received. Varieties of this policy are the policy of stabilization after the economic recession (has a stimulating character) and the policy of stabilization during the period of economic recovery (has a restrictive direction).

" xml:lang="en-EN" lang="en-EN">2." xml:lang="en-EN" lang="en-EN">Growth Policy" xml:lang="en-EN" lang="en-EN"> is aimed at achieving the level of annual increase in GDP required for the country, taking into account its potential. It is aimed at expanding the volume of financial resources and ensuring their availability both at prices and and under the terms of attraction.The financial policy of economic growth can be implemented through the growth of public spending, lowering the level of taxation and pursuing a policy of "cheap money".

" xml:lang="en-EN" lang="en-EN">3." xml:lang="en-EN" lang="en-EN">Containment Policy" xml:lang="en-EN" lang="en-EN"> is used to regulate the economic cycle in order to prevent a crisis of overproduction or to prevent the economy from being depleted due to excessive economic growth. The ways to implement such a policy are to reduce government spending, increase taxation setting high interest rates on loans.

;text-decoration:underline" xml:lang="en-EN" lang="en-EN">4. According to the nature of implementation, the financial policy is divided into:

" xml:lang="en-EN" lang="en-EN">1." xml:lang="en-EN" lang="en-EN">Discretionary Policy" xml:lang="en-EN" lang="en-EN"> provides for the implementation by the state of certain measures aimed at implementing financial strategies and tactics. Specific measures, stimulating or deterring, are applied in accordance with the situation that is currently developing in economy and finance.

" xml:lang="en-EN" lang="en-EN">2." xml:lang="en-EN" lang="en-EN">Non-discretionary policy" xml:lang="en-EN" lang="en-EN"> is to use certain financial instruments -" xml:lang="en-EN" lang="en-EN">"built-in stabilizers" xml:lang="en-EN" lang="en-EN">", which automatically regulate the situation in the economy.

" xml:lang="en-EN" lang="en-EN">The functions of "built-in stabilizers" perform taxes, as well as social state payments, various subsidies.

" xml:lang="en-EN" lang="en-EN">The viability of financial policy depends on the effectiveness of the state at each stage and the correctness of the decisions made, its formation begins with a clear definition of goals and setting reasonable tasks.

" xml:lang="en-RU" lang="en-RU">Concrete measures in the field of finance are carried out on the basis of the formed policy. At the same time, it is very important to ensure the effectiveness of financial instruments, because the effectiveness of financial policy depends both on its validity and on how the mechanisms for its implementation are implemented.In this regard, it is extremely important to control the implementation of the financial policy made.

" xml:lang="en-EN" lang="en-EN">It is no less important to ensure the rational distribution of funds between sectors and sectors of the economy, the concentration of financial resources in the most important areas of economic and social development.

" xml:lang="en-EN" lang="en-EN">2.2. Characteristics of the modern financial policy of Ukraine

" xml:lang="en-EN" lang="en-EN">Since 1991, a fundamentally new financial policy has been implemented. At the first stage, it was aimed at overcoming the deep crisis. the growth of national income, the creation of scientifically based relations in settlements with foreign partners, the formation and effective use of foreign exchange resources In the field of budget policy, it was necessary to balance the state and local government budgets, create stabilization funds, subsidies to effectively influence the state of development of the material and non-material spheres, meeting the needs of the state in conducting an effective socio-economic policy.

" xml:lang="en-EN" lang="en-EN">The investment policy provided for the stimulation of investment activities at the expense of own funds, state bodies, budgetary investments, investments of foreign investors in the economy of Ukraine, credit funds. In the tax system, financial policy was to create not a fiscal, but a regulatory, stimulating long-term taxation system, as well as a system of effective relations between economic bodies and budgets.

" xml:lang="en-EN" lang="en-EN">At the second stage, the financial policy should focus on achieving macroeconomic stability, as well as on the efficiency of the distribution of financial resources. Finance, which plays a controlling and stimulating role, aimed at creating efficient structure of production, stimulating scientific and technological progress, saving resources and improving labor efficiency.At the same time, the budget policy is organically linked with the functioning of other instruments and plays the role of their coordinator at the national level.The budget deficit is not financed by the inflation tax, does not exceed the expected real growth and economic entities must be confident in the stability of the tax system.

" xml:lang="en-EN" lang="en-EN">Thus, in the conditions of the formation of a market economy, financial policy is a set of government measures to mobilize and distribute financial resources in order to achieve GDP growth and overcome economic development problems. The financial policy of Ukraine should take into account real financial resources, the main source of which is GDP.A significant place in it is occupied by profits, payments and deductions attributable to the cost of production.Therefore, it is necessary to combine state support for economic sectors with market requirements.The state makes an economically expedient choice of priority sectors, which mainly form the revenue part of the state budget.It is necessary to determine the criteria for financial assistance to business entities, taking into account the socio-economic characteristics of individual regions.It should also be borne in mind that the success of financial policy also depends on planning, which cannot be stopped and oviyah availability of different forms of ownership. Planning must be used in close connection with the requirements of objective economic laws.

" xml:lang="en-EN" lang="en-EN">Financial policy should take into account the state of the Ukrainian economy, its potential, real sources of funding.

" xml:lang="en-EN" lang="en-EN">The state, through fiscal, tax, monetary policy, manages the economy, ensures financial stability. The Cabinet of Ministers, as the highest executive body, forms the budget, the main macroeconomic indicators of economic and social development, and implements financial policy The Ministry of Finance of Ukraine, in accordance with the Law of Ukraine "On the budgetary system of Ukraine", determines the parameters of the state budget, provides justification and explanation of the amount of costs.

" xml:lang="en-EN" lang="en-EN">The Verkhovna Rada annually develops a Budget Resolution, determines the main directions of budget policy. The National Bank of Ukraine develops the basic foundations of monetary policy, and also exercises control, consistently pursues a policy ensuring the stability of the hryvnia.

" xml:lang="en-EN" lang="en-EN">2.3. Financial mechanism

" xml:lang="en-EN" lang="en-EN">The implementation of financial policy is carried out with the help of a rather complex system of influencing various aspects of the financial activities of individual entities - the financial mechanism.

" xml:lang="-none-" lang="-none-">Basic" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">of this" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">influence" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">are" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">state relationships" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">which produces" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">implements" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">financial" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">policy" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">with business entities" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-"> which provide" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">production" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">GDP" xml:lang="en-EN" lang="en-EN">.

" xml:lang="-none-" lang="-none-">Financial" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">mechanism" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">-" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">this" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">collection" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">financial" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">methods" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">forms" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">tools" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">Levers of Influence" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">on" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">social" xml:lang="-none-" lang="-none-">-" xml:lang="en-EN" lang="en-EN">economic development" xml:lang="-none-" lang="-none-">society" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">with which" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">provided" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">implementation" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">systems" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">distributions" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">remaps" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">control" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">as" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">functions" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">finance" xml:lang="en-EN" lang="en-EN">, creation," xml:lang="-none-" lang="-none-">mobilization" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">usage" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">decentralized" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">centralized" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">cash income" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">funds" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">reserves" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">." xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">He" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">provides" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">organization" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">scheduling" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">stimulation" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">usage" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">financial" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">resources" xml:lang="en-EN" lang="en-EN">.

" xml:lang="-none-" lang="-none-">Financial" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">mechanism" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">this" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">essentially" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">methodical" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">organizational" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">legal" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">positions" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">measures" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">which" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-"> define" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">operation" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">finance" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">in" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">economy" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">states" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">their" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">practical use" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">for" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">achievements" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">defined by the respective" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">programs" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">goals and objectives" xml:lang="en-EN" lang="en-EN">.

" xml:lang="-none-" lang="-none-">To structure" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">financial" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">mechanism" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">there are five" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">of related elements" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">(" xml:lang="en-EN" lang="en-EN">table." xml:lang="-none-" lang="-none-">2.1)" xml:lang="en-EN" lang="en-EN">.

" xml:lang="-none-" lang="-none-">Table 2.1" xml:lang="en-EN" lang="en-EN">." xml:lang="-none-" lang="-none-">Elements" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">structs" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">financial" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">mechanism

" xml:lang="uk-UA" lang="uk-UA">No.c/n	" xml:lang="uk-UA" lang="uk-UA">Element View	" xml:lang="uk-UA" lang="uk-UA">Element entity
" xml:lang="uk-UA" lang="uk-UA">1	;color:#000000" xml:lang="uk-UA" lang="uk-UA">Financial methods	" xml:lang="-none-" lang="-none-">Influence methods" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">financial" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">relations" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">on" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">household" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">process" xml:lang="en-EN" lang="en-EN">." xml:lang="-none-" lang="-none-">This is the influence" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">is implemented" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">via control" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">motion" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">financial" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">resources" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">cost-benefit measurements" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">financial incentives" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">responsibility" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">for" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">efficient usage" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">currency" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">funds" xml:lang="en-EN" lang="en-EN">." xml:lang="-none-" lang="-none-">To financial" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">methods are assigned" xml:lang="en-EN" lang="en-EN">:" xml:lang="-none-" lang="-none-">scheduling" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">prediction" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">investment" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">lending" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">self-credit" xml:lang="en-EN" lang="en-EN">, taxation," xml:lang="-none-" lang="-none-">financial incentives" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">responsibility" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">insurance" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">collateral" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">transfer" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">trust operations" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">rent" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">leasing" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">factoring" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">etc." xml:lang="en-EN" lang="en-EN">.;color:#000000" xml:lang="uk-UA" lang="uk-UA">
" xml:lang="uk-UA" lang="uk-UA">2	" xml:lang="-none-" lang="-none-">Financial leverage	" xml:lang="-none-" lang="-none-">Receive" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">financial" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">method" xml:lang="en-EN" lang="en-EN">." xml:lang="-none-" lang="-none-">These include" xml:lang="en-EN" lang="en-EN">:" xml:lang="-none-" lang="-none-">​​profit" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">revenue" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">depreciation" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">financial sanctions" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">prices" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">rental" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">fee" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">dividends" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">percentage" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">rates" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">for loans" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">deposits" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">bonds" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">investments" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">currency" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">courses" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">etc.
" xml:lang="uk-UA" lang="uk-UA">3	;color:#000000" xml:lang="uk-UA" lang="uk-UA">Legal support	" xml:lang="-none-" lang="-none-">Enables" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">legislative acts," xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">decrees" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">orders and others" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">legal" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">docs" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">organs" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">controls
" xml:lang="uk-UA" lang="uk-UA">4	;color:#000000" xml:lang="uk-UA" lang="uk-UA">Regulations	" xml:lang="-none-" lang="-none-">Generate" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">instructions" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">standards" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">norms" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">tariff" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">rates" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">guidelines" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">explanations
" xml:lang="uk-UA" lang="uk-UA">5	;color:#000000" xml:lang="uk-UA" lang="uk-UA">Information support	" xml:lang="-none-" lang="-none-">Consists of" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">various" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">genus" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">financial" xml:lang="-none-" lang="-none-">-" xml:lang="en-EN" lang="en-EN">economic information," xml:lang="-none-" lang="-none-">to" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">which refers" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">data" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">about financial status" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">business entities" xml:lang="en-EN" lang="en-EN">," xml:lang="-none-" lang="-none-">financial" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">processes" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">on" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">internal" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">international markets" xml:lang="en-EN" lang="en-EN">." xml:lang="-none-" lang="-none-">Presence" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">reliable" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">business information" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">allows" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">fast" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">accept" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">financial and" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">commercial" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">solutions that provide" xml:lang="en-EN" lang="en-EN">" xml:lang="-none-" lang="-none-">profit maximization

" xml:lang="en-EN" lang="en-EN">Based on the fact that the state through the financial mechanism carries out its activities in the field of finance, we can distinguish" xml:lang="en-EN" lang="en-EN">prescriptive financial mechanism and regulatory" xml:lang="en-EN" lang="en-EN">.

" xml:lang="en-EN" lang="en-EN">Prescriptive financial mechanism" xml:lang="en-EN" lang="en-EN">

" xml:lang="en-EN" lang="en-EN">Regulatory Financial Mechanism" xml:lang="en-EN" lang="en-EN">

" xml:lang="en-EN" lang="en-EN">2.4. Financial management in a market economy

" xml:lang="en-EN" lang="en-EN">The practical use of the financial mechanism is directly related to the purposeful activities of the state in financial management.

" xml:lang="en-EN" lang="en-EN">" xml:lang="en-EN" lang="en-EN">Control contains a number of functional elements" xml:lang="en-EN" lang="en-EN">: forecasting, planning, operational management, regulation and control. They ensure the implementation of financial policy in the current activities of state bodies, legal entities and individuals.

" xml:lang="en-EN" lang="en-EN">Control objects are:

" xml:lang="en-EN" lang="en-EN">- Monetary circulation as the movement of public funds in monetary form in the process of reproduction;

" xml:lang="en-EN" lang="en-EN">- Circulation of capital, covering its advance payment, use in production, sale of manufactured goods and return of capital to its original form;

" xml:lang="en-EN" lang="en-EN">- Financial resources and their sources in the form of monetary funds used to ensure the continuous functioning and development of production, social and cultural sphere;

" xml:lang="en-EN" lang="en-EN">- Financial relations arising between enterprises and government institutions, as well as relations between trade, commercial and other structures.

" xml:lang="en-EN" lang="en-EN">Finance management at the state level is carried out by the legislative and executive authorities. In Ukraine, this is the Verkhovna Rada, the President and the Cabinet of Ministers of Ukraine. Directly operational financial management is entrusted to the Ministry of Finance and the regional and local bodies accountable to it.The supreme body of legislative power, the Verkhovna Rada, approves the state budget and regulates the most important relations in financial activity.This is done through the adoption of laws on financial matters.

" xml:lang="en-EN" lang="en-EN">The tasks of financial services are:

" xml:lang="en-EN" lang="en-EN">- Creation of financial resources for industrial and social development, ensuring profit growth, increasing profitability;
- Fulfillment of financial obligations to the budget, banks, employees, suppliers;

" xml:lang="en-EN" lang="en-EN">- Promoting the most efficient use of production assets and investments;

" xml:lang="en-EN" lang="en-EN">- Development and implementation of financial plans;

" xml:lang="en-EN" lang="en-EN">- Implementation of measures for the efficient use of production assets, working capital, control over the correct use of financial resources.

" xml:lang="en-EN" lang="en-EN">In order to ensure the achievement of the objectives of managing the financial planning tasks are:

" xml:lang="en-EN" lang="en-EN">а) substantiation of volumes and search for decentralized and centralized means necessary to solve production, non-production, territorial and national problems;

" xml:lang="en-EN" lang="en-EN">b) ensuring the necessary conditions for the effective functioning of finance;

" xml:lang="en-EN" lang="en-EN">c) achieving new income, funds, reserves.

" xml:lang="en-EN" lang="en-EN">Financial planning covers three main types:

" xml:lang="en-EN" lang="en-EN">- forecasting financial activity (3-5 years);

" xml:lang="en-EN" lang="en-EN">- current financial activity planning (1 year);

" xml:lang="en-EN" lang="en-EN">- operational planning of financial activity (month, quarter).

" xml:lang="en-EN" lang="en-EN">Defines current planning tasks;text-decoration:underline" xml:lang="en-EN" lang="en-EN">forecasting financial activity" xml:lang="en-EN" lang="en-EN"> - a general plan of action to provide the enterprise with funds, covering the issues of planning and formation of finances, solves the problem of ensuring the financial stability of the enterprise in market conditions.

" xml:lang="en-EN" lang="en-EN">Current financial planning"xml:lang="en-EN" lang="en-EN"> is to develop a system of financial plans for certain aspects of the financial activities of the enterprise for the coming year, broken down by quarters. This planning allows you to determine all sources of funding for the upcoming period, form system of income and expenses, ensure the constant solvency of the enterprise, determine the structure of its assets at the end of the planning period.

" xml:lang="en-EN" lang="en-EN">Current planning provides for the development of the following types of financial plans:

;text-decoration:underline" xml:lang="en-EN" lang="en-EN">- Income and expense plan" xml:lang="en-EN" lang="en-EN">on industrial and commercial operating activities, the purpose of which is to determine the amount of net profit in the planning period. The main indicators of such a plan include: the volume of production; the amount and the level of income from the sale of products, the amount of fixed and variable costs, the rates and amount of basic tax payments, the profit of the enterprise;

" xml:lang="en-EN" lang="en-EN">-;text-decoration:underline" xml:lang="en-EN" lang="en-EN">Receipt and expenditure plan" xml:lang="en-EN" lang="en-EN">, the purpose of which is to ensure the constant solvency of the enterprise at all stages of the planning period. Considering the high financial responsibility for late payments, when planning, it is necessary to provide not only the compliance of receipts and spending money, but also the presence of certain reserves in the form of a balance of free funds;

" xml:lang="en-EN" lang="en-EN">-;text-decoration:underline" xml:lang="en-EN" lang="en-EN">Balance plan" xml:lang="en-EN" lang="en-EN"> - contains a forecast of the composition of its assets and liabilities. The purpose of drawing up this plan is to determine the possibility of increasing individual assets and form the optimal financial structure of the enterprise's capital, which ensures its financial stability development.When planning assets, the ratio of current and non-current assets is optimized, and in the composition of current assets - their individual groups according to the level of liquidity.When planning liabilities, the ratio of own and borrowed funds is optimized, and in the composition of borrowed funds - short and long-term liabilities;

;text-decoration:underline" xml:lang="en-EN" lang="en-EN">- Plan for the formation and use of financial resources" xml:lang="en-EN" lang="en-EN">, the purpose of which is to accumulate and purposefully spend financial resources that ensure the financial development of the enterprise in the planned period.

;text-decoration:underline" xml:lang="en-EN" lang="en-EN">In practice, two types of budgets are used:

" xml:lang="en-EN" lang="en-EN">1. The capital budget or the budget of capital expenditures and cash is developed at the stage of real investment and reflects the costs of acquiring long-term non-current assets and planned financial resources from various sources .

" xml:lang="en-EN" lang="en-EN"> 2. The current budget or the budget of current cash costs and income is developed for individual business transactions or in general for the economic activity of the enterprise, but in the short term and reflects current expenses and business income.

" xml:lang="en-EN" lang="en-EN">Along with financial planning, financial control plays an important role in financial management.

Before talking about the importance and place of the financial market in a market economy, it is necessary to climb a few steps higher and look at the objective need for this segment in a market economy. To do this, consider the scheme of movement of goods, income, products and money (see figure).

Circle members:

households;

enterprises;

state;

financial enterprises (mainly banks).

The state collects taxes and carries out expenses - it buys goods and pays wages from the budget. Banks redistribute monetary resources. Companies produce products and provide services.

The output of products is divided according to its use into several parts:

consumption "C";

government spending "G";

investment "I".

Gross domestic product (final output) "Y" is equal to the sum of consumption, government spending and investment:

Y = C + G + I.

This formula lacks the participation of the foreign economic activity of the state, as the resulting indicator - the balance of foreign trade in goods and services (X). Y is the sum of expenses of all consumers (population, state and investors).

The state can significantly influence the GDP.

The scheme of economic turnover with the participation of the state and taking into account investment activity demonstrates the process in which the expansion of production is carried out. In this case, households do not spend all their income on consumption, but save a part of it in the form of savings.

The redistribution of savings and their transformation into investments takes place with the participation of banks playing the role of intermediaries. The state collects taxes from the population (households) and enterprises, thereby forming the revenue side of the state budget. Expenditure items of the state budget include the purchase of goods and services (for the needs of defense, road construction, support for state enterprises and the maintenance of institutions, etc.), payments to households of social transfers (subsidies, allowances, pensions, scholarships).

To ensure the normal course of the circuit, the amount of savings (S) must be equal to the amount of investment (I).

The volume of national production and the rate of economic growth, as a rule, constantly fluctuate under the influence of a number of factors, primarily under the influence of changes in the investment sphere.

As mentioned above, the state is able to influence the dynamics of GDP in the most serious way. And if its significant growth does not occur in the presence of huge demand from households and enterprises (the need to update production assets), all claims should be addressed to the government of the state. In our case, to those who form the government.

Let us consider the mechanism of redistribution of capital between creditors and borrowers with the help of intermediaries based on supply and demand for capital. In practice, the financial market is a set of credit organizations (financial and credit institutions) that direct the flow of funds from the owner to the borrower and vice versa. The main function of this segment of the economy is the transformation of idle funds into loan capital.

The financial market is an extremely complex system in which money and other financial assets of its participants circulate independently, regardless of the circulation of real goods. This market operates with a variety of financial instruments, is serviced by specific financial institutions, has an extensive and diverse infrastructure.

The financial market is a market where a variety of financial instruments and financial services are the object of purchase and loss. It consists of the following important market segments: currency, securities, futures and options.

Financial market:

§ mobilizes temporarily free capital from diverse sources;

§ effectively distributes the accumulated free capital among its numerous final consumers;

§ determines the most effective directions for the use of capital in the investment sphere;

§ forms market prices for individual financial instruments and services that objectively reflect the emerging relationship between supply and demand;

§ carries out qualified mediation between the seller and the buyer of financial instruments;

§ creates conditions for minimizing financial and commercial risk;

§ accelerates the turnover of capital, i.е. contributes to the activation of economic processes.

The larger the gap between the volume of proposed investment and savings, the more urgent is the need for the functioning of financial markets to distribute savings among end-users. The meeting of the final investor and the ultimate owner of funds should be carried out in an optimal way and at the lowest cost.

Efficient financial market segments are absolutely essential to ensure the mobilization of free capital and sustain the country's economic growth. With only their own savings, market entities could invest no more than they have accumulated. Therefore, their investment activity would be limited. If the size of the planned investments exceeds the amount of current savings, market entities are simply forced to postpone their implementation until the required funds are accumulated. Due to the lack of funding, market entities that do not have sufficient capital would have to postpone or abandon many promising investments or finance not the best projects, i.e. capital would not be used optimally. Market entities that do not have at their disposal attractive options for investing funds would have no choice but to accumulate funds. On the other hand, promising investment projects would not be implemented due to lack of funds from firms with investment alternatives.

The role of financial markets in a market economy can be illustrated with the simplified flowchart below.

All cash flows, regardless of the source of origin, necessarily pass through the financial market with the help of financial institutions.

For example, if the state offers to buy its securities to commercial organizations and households to cover the budget deficit, then these operations are carried out in the financial market through various financial institutions. If a commercial organization needs to raise additional capital, it turns to other commercial organizations and households with temporarily free funds through the financial market by issuing shares and (or) bonds.

FLOW DIAGRAM

"The role of financial markets in a market economy"

In modern conditions, the financial market is an integral part of any market economy, a link between the main participants in the market economy - the public sector, commercial organizations and households.

The experience of the functioning of the financial market is of considerable interest to domestic state and commercial financial institutions in the context of the formation of a market-type economy in our country and, therefore, we used it in developing methodological recommendations.

CURRENCY MARKET

Currency market- this is a set of conversion and deposit-credit operations in foreign currencies, carried out between counterparties (foreign exchange market participants) at the market rate or interest rate.

Currency operations- contracts of foreign exchange market agents for the sale, settlement and provision of loans in foreign currency on specific terms (amount, exchange rate, interest rate, period) with execution on a certain date. Current conversion operations (on the exchange of one currency for another) and current deposit and credit operations (for a period of up to one year) account for the bulk of foreign exchange transactions.

The main difference between conversion operations and deposit and credit operations is that the former do not have a duration in time, i.e. are carried out at some point in time, while deposit operations have a duration in time and different urgency.

Markets can be classified in several ways.

By type of operation. There is a world market for conversion operations (it is possible to single out markets for conversion operations such as euro/dollar or dollar/Japanese yen) and a world market for deposit operations.

On a territorial basis. Largest markets: European, North American, Far East. In turn, major international monetary and financial centers are divided into: in Europe - London, Zurich, Frankfurt am Main, Paris, etc.; in North America, New York; in Asia - Tokyo, Singapore, Hong Kong.

The volume of transactions in the world currency market is constantly growing, which is associated with the development of international trade and the abolition of currency restrictions in many countries. The dynamics of the daily world interbank foreign exchange market is presented in Table 1.

Dynamics of the daily turnover of the world interbank foreign exchange market in 1986-1995 (billion dollars)

Table 1

<Валовой оборот за вычетом двойного учета в стране и за рубежом. Источник - информационное агентство Доу-Джонс.

Introduction

1. Financial market: essence and functions

2. The structure of the financial market. Characteristics of its elements

3. The role of the financial market in the development of the economy of modern Russia

Conclusion

Introduction

It is known that the economic basis of any state is the movement of funds between economic entities. Each economic entity has its own rights, goals, tasks and responsibilities, but they are all participants in economic relations. Interacting with each other, these economic relations form a market. The functioning of any market is mediated by cash flows and is associated mainly with the relationships that arise in the process of cash flow.

Unfortunately, for many decades in Russia, in essence, there was neither a financial market nor its infrastructure: private commercial and investment banks, stock exchanges, insurance companies, etc. Russia's transition from a rigidly centralized planned economy to a market economy requires the re-establishment of a financial market in the country with all the institutions serving it. This task is very complex and large-scale, but it needs to be addressed immediately.

For many years, there was no competition in the country between producers of goods and services, including financial ones, which, as you know, is the engine of social progress. As a result, during the existence of the “planned economy”, the volume and structure of social production turned out to be in isolation from the volume and structure of the socially necessary needs of the population. As a result, a “deficit economy” was formed, which gave rise to a shortage of not only material, but also spiritual benefits. The transition to new, market methods of managing has become an objective necessity.

A market economy requires the use of the potential of the financial market, which is the most important source of its growth. The scale of the financial market depends on the state and size of social production, the size of the economically active population. The financial markets of the USA, EU countries and Japan now have the greatest resources. It is hoped that the Russian financial market, when the transitional period of its development ends, will also have sufficient resources for it.

The relevance of this topic lies in the fact that all parts of the financial system operate in a single market space, the most important element of which is the financial market. The purpose of this market is the accumulation of temporarily free funds and their efficient use.

The purpose of this work is to reveal the essence of the financial market and its role in the economy.

Based on the goal, the main tasks of the work are:

To reveal the concept and functions of the financial market;

Consider the structure of the financial market and its elements;

Determine the role of the financial market in the development of the economy.

When performing this work, the legislative and regulatory materials of the Russian Federation, the works of domestic and foreign experts on the problem, as well as statistical sources, periodicals and electronic resources were studied and used.

1. Financial market: essence and functions

The financial market is the sphere of sale of financial assets and economic relations between sellers and buyers of these assets. The financial activity of enterprises is inextricably linked with the functioning of the financial market, the development of its types and segments, the state of its conjuncture. In its most general form, the financial market is a market in which a variety of financial instruments and financial services are the object of purchase and sale.

The concept of "financial market" is to some extent collective, generalized. In real practice, it characterizes an extensive system of separate types of financial markets with various segments of each of these types, which are interconnected.

Undoubtedly, the financial market is one of the most important structural components of the market as a whole. Therefore, this concept is subject to the uncertainty that is inherent in the definition of the market as such. Now there is no single idea of ​​the essence of the financial market, its structure, which means that there is no generally accepted understanding of it.

The definitions of the financial market range from the most general to particular, tied to a specific phenomenon, and therefore narrowing the scope of the concept.

Most authors believe that the essence of the financial market lies in the totality of economic relations and institutions that serve them, ensuring the transformation of money into capital through financial instruments.

Like any other, the financial market is designed to establish direct contacts between buyers and sellers of financial resources. The financial market is a fairly complex structure that combines different types of markets, each of which has its own segments.

To reveal the essence of the financial market, we characterize its components. An analysis of the functioning of financial markets implies a certain segmentation, division, and the allocation of separate markets functioning according to their own rules. There are different approaches to the classification of financial markets.

Classification - according to the period of circulation of financial assets (instruments). There are the following types of financial markets: money market and capital market.

In the money market, market financial instruments and financial services of all previously considered types of financial markets are sold or bought with a circulation period of up to one year. The functioning of this short-term sector of financial markets allows enterprises to solve the problems of both filling the lack of monetary assets to ensure current solvency and the effective use of their temporarily free balance. Financial assets circulating in the money market are the most liquid; they have the lowest level of financial risk, and the pricing system for them is relatively simple.

In the capital market, transactions are carried out similarly, only with a circulation period of more than one year. The functioning of the capital market allows enterprises to solve the problems of both the formation of investment resources for the implementation of real investment projects, and effective financial investment (implementation of long-term financial investments). As a rule, financial assets traded on the capital market are less liquid, they have the highest level of financial risk and, accordingly, a higher level of profitability.

The classification of financial markets can also be carried out on a regional basis (Table 1.1).

Table 1.1. Classification of financial markets by region

Type of financial market	Character traits
Local	represented mainly by operations of commercial banks, insurance companies, unorganized securities traders with their counterparties - local business entities and the public;
Regional	characterizes the financial market, functioning on the scale of the region (republic) and, along with local unorganized markets, includes a system of regional stock and currency exchanges:
National	includes the entire system of the country's financial markets, all their types and organizational forms;
World	is an integral part of the global financial system, which integrates the national financial markets of countries with an open economy.

The main classification of the financial market is by types of circulating financial assets (instruments, services). The following components of the financial market are distinguished (Figure 1.1):

Credit market;

Securities market (or stock market);

Currency market;

Insurance market;

Precious metals market.

The credit market is a general designation of those markets where there is a supply and demand for various means of payment. Credit transactions are mediated, as a rule, by credit institutions (banks and others), which borrow and narrow money, or by the movement of various debt obligations, which are sold and bought on the securities market. Consequently, the credit market provides funds for investment at the disposal of enterprises and it is on it that money moves from those sectors of the economy where there is a surplus to those sectors that lack them. In the credit market, businesses borrow money to finance their investments; sometimes enterprises lend money, but, as a rule, the manufacturing sector takes more than it gives. Therefore, we can say that one of the main tasks of the credit market is to direct the savings of the population and free funds to intermediary persons for investments.

The credit market contributes to the growth of production and trade, the movement of capital within the country, the transformation of monetary savings into investment, the implementation of the scientific and technological revolution, and the renewal of fixed capital. The economic role of the credit market lies in its ability to combine small, disparate funds in the interests of all capitalist accumulation. This allows the market to actively influence the concentration and centralization of production and capital.

The securities market is a set of economic relations regarding the issuance and circulation of securities as tools for financing and developing the economy. Securities as an economic category are rights to resources that are separated from their basis and even have their own material form (for example, in the form of a paper certificate, account entries, etc.), and also have the following fundamental properties: negotiability; availability for civil circulation; standardization and seriality; documentation; regulation and recognition by the state; marketability; liquidity; risk. .

The functioning mechanism of this market allows financial transactions to be carried out on it in the fastest way and at fairer prices than in other types of financial markets. This market is most amenable to financial engineering - the process of targeted development of new financial instruments and new schemes for financial transactions.

The securities market is divided into primary and secondary. Primary markets are those in which issued securities are first sold to buyers. Secondary markets trade in securities already owned. This distinction between them is very important. If a newly issued share of a company is sold, then that company receives the issued funds, and if a share issued and sold earlier is sold, then the issued funds go to its last owner. Secondary markets help corporations sell their newly issued stocks or bonds, increasing their liquidity.

The stock market can be classified according to various criteria. Depending on the place of trade, the exchange and over-the-counter markets are distinguished. Accordingly, on the exchange securities are sold on the exchange, and off-exchange outside of it. Depending on the level of regulation, the market is divided into organized and unorganized. According to the timing of the execution of the transaction, cash (spot) and urgent are distinguished. In the spot market, purchase and payment are made simultaneously. In the futures market, instruments are derivative securities, that is, not the securities themselves, but contracts for their purchase or sale in the future.

Depending on the type of securities, the stock market is divided into the market of equity, debt and derivative securities. Securities existing in modern world practice are divided into two classes: basic securities and derivative securities or derivatives.

The foreign exchange market is a market where transactions are made with currency or with financial instruments, which are based on currency. The successful development of foreign exchange relations is possible if there is a foreign exchange market, where you can freely sell and buy currency. Without such an opportunity, economic counterparties would not be able to realize their currency relations - they would not have foreign currency to fulfill their external obligations, they would not be able to convert the received foreign exchange earnings into national money to fulfill their internal obligations.

In the foreign exchange market, people buy and sell currency not only for making payments, but also for other purposes: for speculative operations, currency risk hedging operations, and others. Moreover, these operations are becoming more and more widespread.

According to its economic content, the foreign exchange market is a sector of the money market, in which demand and supply for such a specific product as currency are balanced.

The insurance market characterizes the market in which the object of purchase and sale is insurance protection in the form of various insurance products offered. The need for the services of this market increases significantly with the development of market relations. The subjects of this market, offering insurance protection, contribute to the accumulation and effective redistribution of capital, widely using the accumulated funds for investment purposes. Even in crisis economic conditions, this market is developing at a high rate, significantly exceeding the rate of development of other types of financial markets.

Mandatory conditions for the existence of the insurance market - the existence of a public need for insurance services and insurers able to meet this need. In this regard, the market of the insurer and the market of the insured are distinguished.

By sectoral basis, the market for personal, property and liability insurance is distinguished. In turn, each of the markets can be divided into separate segments, for example, the accident insurance market, the home property insurance market, and others.

In the precious metals market, transactions are carried out with valuable metals, primarily gold. The multifunctionality of the gold market is due to the fact that it is not only a generally recognized financial asset and the safest means of reserving free cash, but also a valuable commodity for a number of manufacturing enterprises. In our country, the gold market is the least developed type of financial market due to the lack of even the minimum necessary legal regulation.

The gold market is a market that provides international settlements, industrial and domestic consumption, investments, risk insurance, and speculative transactions.

According to the degree of organization, exchange and over-the-counter gold markets are distinguished. Gold is an object of exchange trading, along with other commodities and financial assets. The gold exchange market is an organized market represented by exchanges of precious metals and precious stones. OTC gold markets are consortiums of several banks authorized to transact gold. Banks carry out intermediary operations between buyers and sellers, fix the average market price level, and are also engaged in cleaning, storing gold, and making bullion.

World centers include markets in London, Zurich, New York, Chicago. Domestic free markets are those in Paris, Vienna, Istanbul, Milan and others; not free (local, controlled) - in Athens and Cairo.

Unlike international markets with a small number of participants, domestic markets are subject to more or less government regulation. The means of regulation are economic measures - quotas, tariffs and taxes, intervention in pricing. Free domestic markets are more leniently regulated, usually through taxation methods. Such a policy does not formally prevent gold from moving from state to state. Regulated markets are more tightly controlled. They are subject to methods such as tax manipulation, licensing, direct intervention and pricing.

Consider the functions performed by the financial market. The financial market consists of different segments, therefore, the functions of these different segments are also different. At the same time, all segments of this market also perform a number of functions that most generally reflect the essence of the financial market as a whole. These general functions include the following:

Risk insurance.

Through the financial market, the accumulation of free funds is carried out, their distribution and redistribution between sectors of the economy, countries and regions on a global scale; acceleration and growth of production efficiency. The financial market regulates relations between its participants, as well as monitors compliance with legal norms, trading rules, and ethical standards by its participants.

The financial market motivates legal entities and individuals to participate in it by providing subjects with the right to participate in the management of enterprises, the right to receive income, the right to own property, the possibility of capital accumulation, thereby acting as a powerful stimulator of the investment process. The information function of the financial market is to bring to economic entities market information about the objects of trade and its participants.

Thus, the national financial market consists of five fundamental segments: the credit market, the securities market, the foreign exchange market, the insurance market, and the precious metals market. In general, the financial market has a complex structure. The role of the financial market is very great, both in the development of a particular region and country, and in the development of the world economy as a whole.

2. The structure of the financial market. Characteristics of its elements

The term structure (from the Latin structūra - structure) has a whole range of meanings that are found both in scientific and in everyday vocabulary. Can be synonymous with system, form, model, organization.

In its basic meaning, structure is the internal structure of something. The internal structure is connected with the categories of the whole and its parts. The identification of connections, the study of the interaction and subordination of the constituent parts of objects that are different in nature, makes it possible to identify analogies in their organization and study structures abstractly without connection with real objects.

The structure of the financial market is an interconnection between the credit, stock, currency, insurance and precious metals markets (Fig. 2.1). In turn, each of these components has its own complex structure and structure. The components of the financial market are its elements:

Market objects;

Market entities;

Market infrastructure;

Regulatory and supervisory bodies.

Financial market

Rice. 1.1 Segments of the financial market

Objects of the financial market - financial assets circulating in this market. Financial assets mean money in national or foreign currency, securities, real estate, precious metals, deposits and credit capital.

Financial market entities are sellers and buyers of financial assets traded on the financial market. The subjects can be the state, population and organizations.

Financial market infrastructure is a set of organizational and legal forms that mediate the movement of financial market objects, a set of institutions, systems, services, enterprises that serve the financial market and ensure its normal functioning.

In simpler terms, the infrastructure of the financial market is a complex of institutions and enterprises that serve its direct participants in order to increase the efficiency of their operations.

The efficiency of the financial market is largely determined by the level of development of its infrastructure and the quality of organization of interaction between financial market operators and institutional investors with its elements. The development of the financial market is ultimately carried out on the basis of its infrastructure and as it develops.

The regulation of the financial market is the streamlining of the activities of all its participants and transactions between them. Regulation of the financial market is carried out by bodies or organizations authorized to perform regulatory functions.

Financial market regulation usually has the following objectives:

Maintaining order in the market, creating normal conditions for the work of all market participants;

Protection of market participants from dishonesty and fraud of efficient persons or organizations, from criminal organizations and criminals in general;

Ensuring a free and open pricing process for securities based on supply and demand;

Creation of an efficient market in which there are always incentives for entrepreneurial activity and in which every risk is adequately rewarded;

In certain cases - the creation of new markets, support for the markets and market structures necessary for society, market initiatives and innovations, and others;

Influencing the market in order to achieve any public goals (for example, to increase the rate of economic growth, reduce unemployment); and protecting the public interest in the marketplace.

The regulation of the financial market is carried out by federal executive bodies - services specially created for this purpose. The Federal Service for Financial Markets (FFMS) carries out the functions of adopting regulatory legal acts, control and supervision in the field of financial markets (with the exception of insurance and banking). The FFMS of Russia is directly subordinate to the Government of the Russian Federation.

The main powers of the FFMS:

Regulation of the issue and circulation of emissive securities, including the implementation of state registration of issues of securities and reports on the results of the issue of securities, as well as registration of securities prospectuses;

Control and supervision in relation to issuers, professional participants in the securities market and their self-regulatory organizations,

Generalization of the application of legislation and submission to the Government of the Russian Federation of proposals for its improvement and development of draft laws and other regulatory legal acts;

Ensuring the disclosure of information on the securities market in accordance with the legislation of the Russian Federation;

Organization of research on the development of financial markets.

In the field of insurance, the supervisory function is performed by the Federal Insurance Supervision Service (FSSN). The FSIS performs the functions of control and supervision in the field of insurance activities, which is under the jurisdiction of the Ministry of Finance. The main functions of the FSSN:

Making decisions on issuing or refusing to issue licenses, on cancellation, restriction, suspension, restoration of validity and revocation of licenses to insurance companies;

Maintaining a unified state register of subjects of the insurance business and a register of associations of subjects of the insurance business;

Implementation of control over the observance by the subjects of the insurance business of the insurance legislation, including by conducting inspections of their activities;

Filing, in cases provided for by law, to the court with claims for the liquidation of the subject of the insurance business - a legal entity or for the termination by the subject of the insurance business - an individual of the activity as an individual entrepreneur;

Generalization of the practice of insurance supervision, development and submission, in accordance with the established procedure, of proposals for improving the insurance legislation governing the implementation of insurance supervision.

The Federal Financial Monitoring Service (FSFM) performs the functions of countering the legalization (laundering) of proceeds from crime and the financing of terrorism, as well as the development of state policy, legal regulation and coordination of activities in this area of ​​other federal executive bodies.

The Federal Antimonopoly Service (FAS) is responsible for maintaining competition in the financial services market.

Regulation and supervision in banking activities is carried out by the Central Bank.

Through all of the above bodies, state regulation of the financial market takes place. It should be noted that in the structure of the financial market there is such an element as self-regulatory organizations (SROs). SRO of professional participants in the securities market - a non-profit organization based on the membership of professional participants in the securities market, operating on the basis of a license issued by the Federal Financial Markets Service. The largest SROs in Russia are the National Association of Stock Market Participants (NAUFOR) and the Professional Association of Registrars, Transfer Agents and Depositories (PARTAD).

Tasks of self-regulatory organizations:

Ensuring the conditions for professional activity in the securities market;

Compliance with professional ethics standards;

Protecting the interests of securities holders and other clients of professional participants in the securities market;

Establishment of rules and standards for conducting transactions with securities that ensure efficient operation in the securities market.

In the securities market, the object of purchase and sale (financial asset) are all types of securities issued by enterprises, various financial institutions and the state.

In accordance with Article 142 of the Civil Code of the Russian Federation, a security is a document certifying, in compliance with the established form and mandatory details, property rights, the exercise or transfer of which is possible only upon its presentation.

According to the law “On the Securities Market”, the following types of securities are: shares, government bonds, bonds, promissory notes, checks, deposit and savings certificates, bank savings book to bearer, bill of lading, privatization securities. During the initial issue and placement of securities, their prices are set by the issuers. Further, prices are set at exchange auctions, by concluding transactions for the purchase and sale of securities. The price of this financial asset corresponds to the price of the last transaction. In the foreign exchange and precious metals markets, pricing occurs in a similar way. The subjects of the stock market are investors and issuers. In the financial market, issuers act solely as a seller of securities with an obligation to comply with all requirements arising from the terms of their issue. The issuers of securities may be the state and legal entities established, as a rule, in the form of joint-stock companies. In addition, securities issued by non-residents may circulate on the national financial market. Investors are financial market entities that invest their money in various types of securities in order to generate income. This income is formed due to the receipt by investors of interest, dividends and an increase in the market value of securities. Investors operating in the financial market are classified according to a number of criteria. According to their status, they are divided into individual and institutional investors. According to the purposes of investment, strategic (acquiring a controlling stake for the implementation of strategic management of the enterprise) and portfolio investors (acquiring certain types of securities solely for the purpose of generating income) are distinguished. By belonging to residents in the national financial market, domestic and foreign investors are distinguished.

Within the infrastructure of the financial market (and the stock market in particular), its main components can be distinguished (Figure 2.2):

The trading system as a set of infrastructure elements, including exchanges and other trade organizers that provide the purchase / sale of financial instruments;

Settlement system as a set of infrastructure elements, including banks and non-bank credit and clearing organizations, providing clearing of transactions with financial instruments, maintenance of cash accounts of participants in trading in financial instruments and their clients and settlements based on its results;

An accounting system as a set of infrastructure elements, including registrars and depositories, which ensures the recording and accounting of the transfer of ownership of financial instruments as a result of their circulation.

Rice. 2.2 Generalized scheme of organization of the financial market [ 15, p. 231]

Exchanges occupy a key place in the infrastructure of the stock, currency and gold markets. As the original regulators of the markets, the classical stock exchanges are historically the forerunners of government regulators in the capital markets. In fact, the regulation of all organized trading in financial instruments was initially concentrated in the hands of exchanges. Subsequently, in an effort to reassure investors that they were protected from the abuse of listed corporations, stock exchanges introduced corporate governance standards for listed companies. Exchanges have established their own regulations governing how financial instruments are traded by offering standardized trading contract formats to brokers and investors.

The tasks of the stock exchange:

Provision of a centralized place where both the sale of securities to their first owners and their secondary resale can take place;

Identification of the equilibrium exchange price;

Accumulating temporarily free funds and facilitating the transfer of ownership;

Ensuring publicity, openness of exchange trading;

Ensuring arbitration;

Providing guarantees for the execution of transactions concluded on the stock exchange;

The largest stock exchanges are located in New York, London, Frankfurt, Shanghai, and Singapore.

In Russia, the main trading in securities takes place on the Moscow Interbank Currency Exchange (MICEX) and the stock exchange of the Russian Trading System (RTS);

Securities depository - a legal entity that provides services to the main participants of the stock market for the storage of securities, regardless of the form of their issue, with the appropriate deposit accounting for the transfer of ownership of them. The relationship between the securities depository and the depositor is governed by the relevant legal norms and the terms of the depository agreement. The activities of a securities depository are subject to mandatory state licensing.

Registrar of securities (or holder of their register). It is a legal entity that collects, fixes, processes, stores and provides data on the register of holders of the issuer's securities. This register represents all registered holders, indicating the number, par value and category of securities they hold on a given date.

Settlement and clearing centers. They are institutions whose service activity consists in collecting, reconciling and correcting information on concluded transactions with securities, as well as in offsetting their deliveries and settlements on them. Such centers are usually created at stock and commodity exchanges.

Investment dealers or underwriters are special banking institutions or companies engaged in the primary sale of issued shares and bonds by purchasing their new issues and arranging subscription (sale) to their participants in the secondary stock market in small lots.

Information and advisory centers - they serve the main participants in all types of financial markets, both individual and institutional. Such centers include qualified marketers, lawyers, financial experts, investment consultants and other specialists in financial market operations. The system of such centers has been widely developed in countries with developed market economies (in our country such services are provided mainly by financial intermediaries).

A financial asset in the foreign exchange market (forex) is a foreign currency and financial instruments servicing transactions with it.

The subjects of the foreign exchange market are sellers and buyers of currency. They are the state, banks, organizations and individuals.

The main infrastructural elements of the foreign exchange market are banks, brokerage companies, and currency exchanges. The leading place among the intermediaries of the foreign exchange market is occupied by banks. Since they maintain accounts (national and foreign exchange) and have developed telecommunications systems, it is very convenient for them to fulfill clients' orders for the purchase and sale of currency. Banks constantly trade currencies within the country and abroad, both directly one-on-one and through currency exchanges. To do this, banks must obtain a license from the central bank.

The foreign exchange market has its own structure, which includes national (local) markets, international markets and the world market. They differ in the scale and nature of foreign exchange transactions, the number of currencies, the level of legal regulation, and others.

In the precious metals market, gold or other precious metals and stones act as a financial asset. The subjects and infrastructure of this market is similar to the foreign exchange market.

The object of economic relations in the credit market is credit resources, as well as financial documents, the circulation of which implies the condition of repayment and payment. The subjects in this market are borrowers and lenders.

Lenders provide a loan for temporary use for a certain percentage. The main function of creditors is the sale of monetary assets (both own and borrowed) to meet the various needs of borrowers in financial resources. Lenders in the financial market can be: the state, commercial banks, non-bank financial institutions.

Borrowers receive loans from lenders under certain guarantees of repayment and for a certain fee in the form of interest. The main borrowers of monetary assets in the financial market are the state, commercial banks, enterprises and the population.

The credit market is a general designation of those markets where there is a supply and demand for various means of payment. Credit transactions are mediated, as a rule, by credit institutions (banks and others), which borrow and narrow money, or by the movement of various debt obligations, which are sold and bought on the securities market. Consequently, the credit market provides funds for investment at the disposal of enterprises and it is on it that money moves from those sectors of the economy where there is a surplus to those sectors that lack them.

In the credit market, businesses borrow money to finance their investments; sometimes enterprises lend money, but, as a rule, the manufacturing sector takes more than it gives. Therefore, we can say that one of the main tasks of the credit market is to direct the savings of the population and free funds to intermediary persons for investments. And banks are the main infrastructure institutions and contribute to the effective functioning of both the credit and financial markets as a whole.

The price for the granted loan is the interest on payment for the loan. Interest is set by banks independently. Interest on loans and deposits should be tied to the refinancing rate set by the Central Bank. But in practice, we see that banks set interest rates many times higher than this discount rate.

Insurance market - the financial asset here is insurance protection in the form of various insurance products. This is a very peculiar object of financial relations. Only he has such features as the creation of special monetary funds, their use only in the event of the occurrence of the indicated events, the probable nature of these events.

Opinions of different authors disagree about this link. Some of them consider the insurance market as an infrastructure of the financial market, and some do not single out the insurance market at all as a separate segment of the financial market. Nevertheless, it is generally accepted to single out this market as a separate segment.

In the insurance market, the main subjects are insurers and policyholders. Insurers sell various types of insurance services (insurance products). The main function of insurers in the financial market is the implementation of all types and forms of insurance by taking on various types of risks for a fee with the obligation to compensate the subject of insurance for losses upon the occurrence of an insured event.

The main insurers are: insurance firms and open-ended companies (providing insurance services to all categories of insurance entities); captive insurance firms and companies - a subsidiary of a holding company (financial-industrial group), created for the purpose of insuring primarily business entities included in it; risk reinsurance companies (reinsurers) that accept part (or the entire amount) of the risk from other insurance companies (the main purpose of reinsurance operations is to split large risks in order to reduce the amount of indemnified loss by the primary insurer upon the occurrence of an insured event).

Insurers are financial market entities that buy insurance services from insurance companies and firms in order to minimize their financial losses in the event of an insured event. The insurers are both legal entities and individuals.

Pricing in the insurance market differs significantly from other segments. Prices for insurance services are set based on the probability of an insured event and other factors.

Of the infrastructure entities, insurance brokers (agents) can be distinguished. The basis of income of insurance brokers is commission payments from the amount of transactions concluded by them.

Thus, various participants operate in the financial market, whose functions are determined by the goals of their activities and the degree of participation in the commission of individual transactions. The composition of the main participants in the financial market is differentiated depending on the forms of transactions, which are divided into direct and indirect.

3. The role of the financial market in the development of the economy of modern Russia

The current global financial crisis is the most significant in the last 70 years, after which the markets will have a fundamentally different structure and growth model. We can say that the history of financial markets is divided into two parts: before the crisis and after. There is hardly anything more subject to uncertainty than the state of financial markets. The financial sphere largely depends on the degree of trust or distrust in it and always enhances the effect of the factor that prevails. This is what makes financial markets dangerous.

Russian financial market participants in the first half of 2008 took a number of measures aimed at reducing the risks associated with the global financial crisis. For example, some banks have begun to reduce their net external borrowings. The rising cost of borrowing in the domestic deposit market, coupled with unclear prospects for attracting external borrowing, led to higher rates on bank loans and corporate bond yields. However, the changes affected only certain segments of the Russian financial sector and not all of its participants. In the financial market until the beginning of August 2008, the main trends that developed during the period of favorable conjuncture on foreign markets persisted. At the same time, the risks associated with these trends continued to grow.

In the second half of 2008, the situation in the world economy, and especially in the financial sector, deteriorated sharply. In the face of an increased shortage of liquid funds, participants in the global financial market reduced their investments in the economies of countries with emerging markets, in particular, in Russia.

Thus, we can conclude that the destabilization of the global financial market in 2007-2008. led to a significant deterioration in the Russian market due to a decrease and rise in the cost of external funding, an outflow of private capital from the Russian market and a decrease in mutual trust of financial market participants. To one degree or another, these factors affected all segments of the Russian market, leading to a decrease in securities quotations and an increase in rates in all segments of the market.

In the first half of 2009, the Russian financial market began a gradual recovery, overcoming the consequences of the global financial and economic crisis in the second half of 2008.

The total volume of the main segments of the Russian financial market, which had fallen sharply during the crisis, began to increase. As a result, at the end of June 2009, it exceeded the country's GDP (Fig. 3). The main contribution to the dynamics of the total volume of market resources in the period under review was made, as before, by the stock market. Capitalization of the stock market at the end of the first half of 2009, according to estimates, reached 42% of GDP, non-financial sector debt on bank loans amounted to 41% of GDP, and the volume of debt securities in circulation - 20% of GDP. .

Rice. 3. Dynamics of volume indicators of the Russian financial market.

Recovery began after the end of January - mid-February 2009, the currency, money and stock markets reached their maximum fall. The minimum values ​​of the ruble exchange rate against the dual-currency basket, the dollar and the euro, the maximum money market rates in recent years, the minimum quotations of corporate securities and the volume of transactions in the primary and secondary segments of the stock market were recorded. At the same time, the high level of credit and deposit rates of banks on the main transactions with non-financial organizations and the population remained against the background of low activity in the segment of lending to non-financial borrowers (Chart 4) .

Rice. 4. Dynamics of individual price indicators of the Russian financial market

The stabilizing effect on the Russian financial market was provided by prompt and large-scale anti-crisis measures taken in late 2008 - early 2009 by the Government of the Russian Federation and the Bank of Russia, which made it possible to mitigate the most acute phase of the crisis. At the same time, the effect of the measures taken by the central banks of the leading foreign countries began to manifest itself. Since the second half of February 2009, the global financial markets began to gradually stabilize, and there are signs of a recovery in prices on the global energy market.

In the following months, the improvement in the world commodity markets, the growth of major foreign stock indices, the stabilization of the situation in the domestic currency and money markets, and the net inflow of private capital into Russia that began in April-May weakened the impact of negative factors, contributing to the improvement of the Russian financial market.

In particular, the relatively high level of interest rates in the Russian economy against the background of the nominal strengthening of the ruble against the dual-currency basket contributed to the resumption of the inflow of speculative capital to the Russian stock market.

Weaker devaluation expectations for the ruble, slower inflation, and a halt in the outflow of private capital allowed the Bank of Russia to start lowering rates on its operations in April in order to help reduce rates in the economy, increase bank lending activity, and overcome the decline in production. By the end of the first half of the year, the first positive symptoms appeared on the credit and deposit market.

The recovery of the domestic financial market was accompanied by a change in the significance of certain types of risks in its various segments. The liquidity crisis was largely overcome in the money market, as evidenced by the reduction in interest rates on ruble interbank loans and REPO transactions, as well as the reduction in banks' demand for Bank of Russia refinancing instruments. However, credit risks have increased in the debt market, which manifested itself in a steady increase in overdue debt on bank loans to the non-financial sector and a rapid increase in the number of defaults on corporate bonds. At the same time, the differentiation of borrowers (banks and non-financial organizations) in terms of their credit quality increased.

The Russian financial market continues to perform its inherent functions. The relationship between the financial sector and the real sector of the Russian economy has been preserved, although somewhat weakened.

The financial market still allows realizing the function of transforming savings into investments, but on a limited scale compared to the pre-crisis period. The weakening of the connection between the financial and real sectors was manifested, first of all, in the difficulty of access to the credit and stock markets of corporate borrowers who do not belong to the category of first-class ones. Under these conditions, the measures of state support for systemically important enterprises in various sectors of the economy have become increasingly important.

In the first half of 2009, close ties remained between segments of the Russian financial market. Despite the very high volatility of price and volume indicators in all market segments, the dynamics of these indicators was quite consistent throughout the period under review.

Thus, in the first half of 2009, the Russian financial market as a whole withstood the economic hardships of the financial crisis and began to recover. The main participants in the financial market continued to carry out their operations, the market infrastructure functioned smoothly. The further development of the Russian financial market depends on the interaction of many external and internal factors.

Conclusion

The financial market is a set of economic relations for the mobilization, distribution, sale and effective use of temporarily free funds of legal entities and individuals, as well as for the transformation of these funds into the capital of enterprises and organizations.

The financial market is designed to perform the following functions:

Transformation of savings into investments;

Assessment of the market value of financial assets;

Ensuring liquidity of financial assets;

Creation of infrastructure for the exchange of financial assets;

Risk insurance.

The main function of the financial market is to mobilize depositors' funds for the purpose of organizing and expanding production.

As world experience shows, the effective functioning of the financial market is impossible without the regulatory and supervisory activities of state bodies. In the conditions of the formation of the financial market (and the securities market in particular), the functioning of such structures becomes of exceptional importance.

The national financial market consists of five fundamental segments: the credit market, the securities market, the foreign exchange market, the insurance market, and the precious metals market. In general, the financial market has a complex structure.

The main subjects in the financial market are sellers and buyers of financial assets. Participants performing auxiliary functions in the financial market are represented by numerous subjects of its infrastructure. The infrastructure of the financial market is a complex of institutions and enterprises that serve its direct participants in order to increase the efficiency of their operations.

A commodity in the financial market is a financial asset. These objects are not homogeneous and specific to each of the segments.

The infrastructure system and the main institutions of the financial market operate in close cooperation. Exchanges occupy a key place in the trading system and in general in the infrastructure of the financial market.

The main features of a developed financial market are: stability of the regulatory framework; information transparency of operations and market participants; a sufficiently large circle of participants and highly technical infrastructure. The presence of these features provides commercial organizations with a quick and efficient attraction of funds.

At present, the Russian financial market does not meet the definition of an efficient financial market, that is, among its properties there are no full-fledged performance of macroeconomic functions, sufficient capacity, freedom and justice. As a result, the domestic financial market is unable to properly perform the functions of transforming savings into investments, creating and distributing investment funds, redistributing risks and insuring them, redistributing property and capital, determining the prices of financial assets, providing a mechanism for making transactions with financial assets, and reducing transaction costs. market participants, promote financial stability.

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