CC BY
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УДК 33
Syrkina A. V. Student of 2 course Faculty of Economics Scientific director: Sergina S.A. Omsk State University of F. M. Dostoevsky
Russia, Omsk
FINANCIAL MARKET
Abstract: the article discusses the nature and significance of financial markets the main functions of financial markets, their basic classification, the influence of financial markets on the economy as a whole.
Keywords: financial market, functions of financial market, money market, capital market, economic development, financial system, financial instruments.
Сыркина А.В. студент 2-го курса факультет «Экономический» Сергина С.А. научный руководитель Университет: ОмГУ им. Достоевского
Россия, г. Омск
ФИНАНСОВЫЙ РЫНОК
Аннотация: в статье рассматриваются сущность и значение финансовых рынков, главные функции финансовых рынков, их основные классификации, влияние финансовых рынков на экономику в целом.
Ключевые слова: финансовый рынок, функции финансовых рынков, денежный рынок, рынок капиталов, экономическое развитие, финансовая система, финансовые инструменты.
1.Introduction
The formation of efficient investment and well-targeted use of financial resources is carried out thanks to the financial market in a market economy.
Financial market is a system of economic relations. The financial market consists of a system of markets: currency, securities, and loan capitals or money. The financial market is an organized or informal system of trading of financial
instruments. In this market there is an exchange of money, provision of credit and mobilization of capital. The main role is played by the financial institutions, directing cash flows from the owners to the borrower. Goods are actually money and securities. Like any market, the financial market is aimed at establishing direct contacts between buyers and sellers of financial resources.
The financial markets realize most effectively the interests of potential buyers and sellers
The market economy requires the use of potential possibilities of the financial market. Financial markets play an important role in ensuring the health and efficiency of the economy. There is a strong positive correlation between financial market development and economic growth. Financial markets are USA, EU countries, Japan possess the most resources now.
The relevance of this topic is that all parts of the financial system operate in a single market space. It is the most important element of the financial market.
The purpose of this market is accumulation of temporarily free funds and their effective use.
The goal of my work is to give a general description of the financial market, to define its goals and establish the role of Finance market in the economy.
The objectives of this work are:
1) To reveal the concept and function of the financial market;
2) To consider the structure of the financial market and its elements;
3) Define the role of finance in economic development
2. Main part
2.1 The concept and function of the financial market;
A financial market is an aggregate of possible buyers and sellers of financial securities, commodities, and other fungible items, as well as the transactions between them. Examples of financial markets include capital markets, derivative markets, money markets, and currency markets. There are many different ways to divide and classify financial markets: for example, into general markets and specialized markets, capital markets and money markets, and primary and secondary markets.
Within the financial sector, the term "financial markets" is often used to refer solely to the markets that are used to raise finance:
for long-term finance, capital markets are used
for short-term finance (maturity up to one year), money markets are used.
Stock markets and bond markets are two types of capital markets that provide financing through the issuing of shares of stock and the issuing of bonds, respectively. A key division within the capital markets is between the primary markets and secondary markets. Newly formed (issued) securities are bought or sold in primary markets, such as during initial public offerings. Secondary markets are for the secondary trade of securities, providing a continuous and regular market for the buying and selling of securities.
While capital markets and money markets constitute the narrower definition of financial markets, other markets are often included in the more general sense of
the word. The derivatives market is the financial market for derivatives-- financial instruments like futures contracts or options-- which are derived from other forms of assets. Currency markets, enabled by foreign exchange (or forex) markets enable currency conversion and determine the relative value of world currencies1.
Financial markets serve six basic functions. These functions are briefly listed below:
¡.Borrowing and Lending: Financial markets permit the transfer of funds (purchasing power) from one agent to another for either investment or consumption purposes.
2.Price Determination: Financial markets provide vehicles by which prices are set both for newly issued financial assets and for the existing stock of financial assets.
3.Information Aggregation and Coordination: Financial markets act as collectors and aggregators of information about financial asset values and the flow of funds from lenders to borrowers.
4.Risk Sharing: Financial markets allow a transfer of risk from those who undertake investments to those who provide funds for those investments.
5.Liquidity: Financial markets provide the holders of financial assets with a chance to resell or liquidate these assets.
6.Efficiency: Financial markets reduce transaction costs and information
costs.
In attempting to characterize the way financial markets operate, one must consider both the various types of financial institutions that participate in such markets and the various ways in which these markets are structured2
2.2 The structure of the financial market and its elements
Classification of financial markets
There different ways to classify financial markets. They are classified according to the financial instruments they are trading, features of services they provide, trading procedures, key market participants, as well as the origin of the markets
From the perspective of country origin, its financial market can be broken down into an internal market and an external market.
The internal market, also called the national market, consists of two parts: the domestic market and the foreign market. The domestic market is where issuers domiciled in the country issue securities and where those securities are subsequently traded.
1 Boundless. "Types of Financial Markets." Boundless Finance. Boundless, 26 May. 2016. Retrieved 12 Nov. 2016 from https://www.boundless.com/finance/textbooks/boundless-finance-textbook/introduction-to-the-field-and-goals-of-financial-management-1/financial-markets-30/types-of-financial-markets-172-3839/
2 Last Updated: 5 March 2012 Site Maintained By: Professor Leigh Tesfatsion
Web Site: http://www2.econ.iastate.edu/classes/econ308/tesfatsion/syl308.htm Reference: Frederic S. Mishkin, The Economics of Money, Banking, and Financial Markets, Seventh Edition, Addison-Wesley, Boston, MA, latest edition.
The foreign market is where securities are sold and traded outside the country of issuers.
External market is the market where securities with the following two distinguishing features are trading: 1) at issuance they are offered simultaneously to investors in a number of countries; and 2) they are issued outside the jurisdiction of any single country. The external market is also referred to as the international market, offshore market, and the Euromarket (despite the fact that this market is not limited to Europe).
Money market is the sector of the financial market that includes financial instruments that have a maturity or redemption date that is one year or less at the time of issuance. These are mainly wholesale markets.
The capital market is the sector of the financial market where long-term financial instruments issued by corporations and governments trade. Here "long -term" refers to a financial instrument with an original maturity greater than one year and perpetual securities (those with no maturity). There are two types of capital market securities: those that represent shares of ownership interest, also called equity, issued by corporations, and those that represent indebtedness, or debt issued by corporations and by the state and local governments.
Financial markets can be classified in terms of cash market and derivative markets.
The cash market, also referred to as the spot market, is the market for the immediate purchase and sale of a financial instrument.
In contrast, some financial instruments are contracts that specify that the contract holder has either the obligation or the choice to buy or sell another something at or by some future date. The "something" that is the subject of the contract is called the underlying (asset). The underlying asset is a stock, a bond, a financial index, an interest rate, a currency, or a commodity. Because the price of such contracts derive their value from the value of the underlying assets, these contracts are called derivative instruments and the market where they are traded is called the derivatives market.
When a financial instrument is first issued, it is sold in the primary market. A secondary market is such in which financial instruments are resold among investors. No new capital is raised by the issuer of the security. Trading takes place among investors.
Secondary markets are also classified in terms of organized stock exchanges and over-thecounter (OTC) markets.
Stock exchanges are central trading locations where financial instruments are traded. In contrast, an OTC market is generally where unlisted financial instruments are traded3.
2.3 The role of finance in economic development
3 Leonardo da Vinci (2010). „Development and Approbation of Applied Courses Based on the Transfer of Teaching Innovations in Finance and Management for Further Education of Entrepreneurs and Specialists in Latvia, Lithuania and Bulgaria". Subotica: Vytautas Magnus University, Financial Markets,11-13.
Role of the Financial System
Financial markets are associated with the accelerated growth of an economy. A financial market helps to achieve the following non-comprehensive list of goals:
Saving mobilization: Obtaining funds from the savers or surplus units such as household individuals, business firms, public sector units, central government, state governments, etc. is an important role played by financial markets. Borrowers (e.g. bond issuers) are connected with lenders (e.g. bond buyers) in financial markets.
Investment: Financial markets play a crucial role in arranging to invest funds. Both firms and individuals can invest in companies through financial markets (e.g. by buying stock).
National Growth: An important role played by financial market is that, they contribute to a nation's growth by ensuring unfettered flow of surplus funds to deficit units. In other words, financial markets help shift money from industry to industry or firm to firm based on the supply and demand for their products.
Entrepreneurship growth: Financial markets allow entrepreneurs (and established firms) to access the funds needed to invest in projects or companies4.
Executive Summary
The financial system is critical to the functioning of the economy as a whole and banks are central to the financial system. In addition to providing substantial employment, finance serves three main purposes:
Credit provision. Credit fuels economic activity by allowing businesses to invest beyond their cash on hand, households to purchase homes without saving the entire cost in advance, and governments to smooth out their spending by mitigating the cyclical pattern of tax revenues and to invest in infrastructure projects. Banks directly provide a substantial amount of credit in the U.S., but, unlike in almost any other economy, financial markets are the ultimate providers of most credit.
Liquidity provision. Businesses and households need to have protection against unexpected needs for cash. Banks are the main direct providers of liquidity, both through offering demand deposits that can be withdrawn any time and by offering lines of credit. Further, banks and their affiliates are at the core of the financial markets, offering to buy and sell securities and related products at need, in large volumes, with relatively modest transaction costs. This latter role is particularly important in the U.S., given the dominance of markets, but is often under-appreciated.
Risk management services. Finance allows businesses and households to pool their risks from exposures to financial market and commodity price risks. Much of this is provided by banks through derivatives transactions. These have gotten a bad
4 Eugene F. Brigham, Joel F. Houston Source: Boundless. "The Role of the Financial System." Boundless Economics. Boundless, 26 May. 2016. Retrieved 13 Nov. 2016. from
https://www.boundless.com/economics/textbooks/boundless-economics-textbook/introduction-to-macroeconomics-18/key-topics-in-macroeconomics-91/the-role-of-the-financial-system-341-12438/
name due to excesses in the run-up to the financial crisis but the core derivatives activities provide valuable risk management services5.
3. Conclusion
The theme of "Financial market" is very interesting and important to consider. Probably why she was and still is a subject of active research and increases in publications and presentations by scientists and statesmen..
The relevance of the topic, among other things, lies in the fact that the present financial market and its segments is an integral and necessary part of the economy, to ensure its effective functioning.
The financial market creates the function:
1. Borrowing and Lending;
2. Price Determination;
4. Risk Sharing;
5. Liquidity;
6. Efficiency;
The national financial market consists of five major segments: credit market, securities Market, foreign exchange market, insurance market and market of precious metals. The financial market has a complex structure.
The main actors in the financial market are buyers and sellers of financial assets. Commodity in the financial market is a financial asset. These objects are not uniform and are specific to each of the segments.
The main features of a developed financial market are:
1) Stability regulatory framework;
2) Transparency of operations, and market participants;
3) The large number of participants and high-tech infrastructure.
These features provide commercial organizations a quick and efficient fundraising.
Thus, in the conditions of development of market economy, changes occurred in all spheres of life there is a need for further study of financial markets, as well as the use of already accumulated knowledge in this area to ensure the most successful function of these structures in the economy.
References:
1. Boundless. "Types of Financial Markets." Boundless Finance. Boundless, 26 May. 2016. Retrieved 12 Nov. 2016 from https://www.boundless.com/finance/textbooks/boundless-finance-textbook/introduction-to-the-field-and-goals-of-financial-management-1/financial-markets-30/types-of-financial-markets-172-3839/
2. Last Updated: 5 March 2012 Site Maintained By: Professor Leigh Tesfatsion Web Site: http://www2.econ.iastate.edu/classes/econ308/tesfatsion/syl308.htm
5 Martin Neil Baily and Douglas J. Elliott (2013. July), The Role of Finance in the Economy: Implications for Structural Reform of the Financial Sector. Unpublished paper Martin Neil Baily Senior Fellow - Economic Studies, Douglas J. Elliott Fellow - Economic Studies, Initiative on Business and Public Policy.
Reference: Frederic S. Mishkin, The Economics of Money, Banking, and Financial Markets, Seventh Edition, Addison-Wesley, Boston, MA, latest edition.
3. Leonardo da Vinci (2010). „Development and Approbation of Applied Courses Based on the Transfer of Teaching Innovations in Finance and Management for Further Education of Entrepreneurs and Specialists in Latvia, Lithuania and Bulgaria". Subotica: Vytautas Magnus University, Financial Markets,11-13.
4. Eugene F. Brigham, Joel F. Houston Source: Boundless. "The Role of the Financial System." Boundless Economics. Boundless, 26 May. 2016. Retrieved 13 Nov. 2016. from https://www.boundless.com/economics/textbooks/boundless-economics-textbooMntroduction-to-macroeconomics-18/key-topics-in-macroeconomics-91/the-role-of-the-financial-system-341 -1243 8/
5. Martin Neil Baily and Douglas J. Elliott (2013. July), The Role of Finance in the Economy: Implications for Structural Reform of the Financial Sector. Unpublished paper Martin Neil Baily Senior Fellow - Economic Studies, Douglas J. Elliott Fellow - Economic Studies, Initiative on Business and Public Policy.
УДК 338.2
Vasileva Y.D. IIyear student, Economic Faculty F. M. Dostoevsky State University
Russia, Omsk
CONTROL IN THE CONTROL SYSTEM
The purpose of my work is the study of the control in the control system, precisely its conception , types, process, and characteristics of effective control (control,types of control,management control)
Introduction
The term "control" is not unique. In French the word "verification" means the verification document executed in duplicate or in two records.
For a long time the concept of control was associated primarily with the verification of correctness of documents, records in mass magazines etc. As a phenomenon associated with the activity mainly accountants, cashiers, financial officers.
Dictionaries and encyclopedias define control as a test of anything; check of correctness of those or other actions in the field of production and management; monitoring for the purpose of verification; the institution or one who is engaged in the audit of the accounts, activities of any other institution or responsible person.
As can be seen from the above, historically, the original is the explanation of control as verification of the veracity and reliability of documents. The next step was the idea of control as compliance with established goals, objectives and applicable laws. The third stage included the monitoring and analysis of deviations, disclosure of the reasons.
Classics of science management (F. W. Taylor, A. Fayolle, G. Emerson, G. Church) stressed that without control it is impossible to control any process. So,
