The role of the financial market in the economic system of the Russian Federation. The role of the financial market in a market economy

The essence of the financial market and its role in the economy of the state lies in its functions, the main of which are:

• - motivated mobilization of savings of individuals, private business, government agencies and foreign investors and the transformation of accumulated funds into investment and loan capital;
• - realization of values ​​embodied in financial assets and bringing financial assets to the consumer;
• - redistribution of funds of enterprises on mutually beneficial terms for the purpose of their effective use;
• - financial services for participants in the economic circulation and financial support for the processes of investing in production, expanding production and equity participation based on determining the most efficient areas for using capital in the investment sphere;
• - impact on money circulation and acceleration of capital turnover, which contributes to the activation of economic processes;
• - formation of market prices for certain types of financial assets;
• - insurance activity and creation of conditions for minimization of financial and commercial risks;
• - export-import operations of financial assets and other financial operations related to foreign economic activity;
• - lending to the government, local self-government bodies by placing government and municipal securities;
• - distribution of state credit resources and their placement among the participants of the economic cycle.

The function of the financial market in relation to bringing financial assets to the consumer is revealed through the creation of a network of institutions for the sale of financial assets (banks, stock exchanges, brokerage houses, investment funds, stock shops, insurance companies, and so on). This function is aimed at ensuring normal conditions for the sale of monetary resources (savings) of consumers (buyers, depositors) in exchange for financial assets that are of interest to them.

Satisfying a significant amount of investment needs of business entities, the mechanism of the financial market, through the pricing system for individual investment instruments, identifies the most effective areas and directions of investment flows to ensure a high level of return on capital used for this purpose. The market pricing mechanism in the financial market is opposite to the state one, although it is under a certain influence of state regulation. This mechanism makes it possible to fully take into account the current supply and demand ratios of various financial assets, which form the corresponding price level for them; satisfy the economic interests of sellers and buyers of financial assets as much as possible.

The essence of the function of influence on money circulation is reduced to the creation by the financial market of conditions for the movement of money in the process of making various payments and regulating the volume of money supply in circulation. Through this function, the monetary policy of the state is implemented in the financial market. The strengthening of the financial market depends on the strengthening of money circulation.

The financial market has developed its own price risk insurance mechanism (and, accordingly, a system of special financial instruments), which, in the conditions of instability of the country's economic development and financial and money market conditions, makes it possible to reduce the financial and commercial risk of sellers and buyers of financial assets and real goods associated with price changes . In addition, the provision of various insurance services has been expanded in the financial market system.

By ensuring the mobilization, distribution and efficient use of free capital, meeting the needs of individual business entities in it in a short time, the financial market accelerates the turnover of used capital, each cycle of which generates additional profit and an increase in national income.

Having determined the positive impact of the financial market on the development of the economy, one should also dwell on the problems that exist at the present stage of its functioning. For Ukraine, the problems are related to the fact that its financial market began to form during the period of globalization of most economic processes, including the financial market.

The prerequisites for the globalization of the capital market include:

• - technical advances in the field of information processing and communications;
• - elimination or weakening of restrictions on the movement of capital across the border;
• - liberalization of domestic capital markets;
• - development of unsettled foreign markets;
• - accelerated increase in the number of derivatives;
• - development of the Eurobond market.

Economic and financial globalization undoubtedly has many positives, but, unfortunately, not all countries can take advantage of it. With its development, the state, the nation loses the ability to effectively exercise its sovereignty over currency and finance; in the global economic space, the dominance of transnational corporations is expanding. Their financial capabilities sometimes exceed the budgets of average European states. Ukraine needs to develop methods and a mechanism for protecting its economic sovereignty, gain positions in the global market, develop a full-fledged concept of participation in blocs to protect against the oppression of domestic production by transnational companies.

Thus, Ukraine needs to form a mechanism for protection against crisis phenomena, which are generated by an unexpected ebb and flow of financial speculators' funds. At the same time, obviously, it will not be possible to avoid some duties and tax restrictions. It is necessary to carefully develop measures for the financial security of Ukraine in connection with the reduction of restrictions on the movement of capital.

Until Ukraine achieves sustainable economic development and becomes an equal partner for the economies of developed countries in the global financial market, state regulation should prevent the expansion of the virtual economy, protect and attract real investors, and limit the activities of financial speculators. For this you need:

• - save some currency restrictions for transactions related to the movement of capital;
• - implement measures to ensure a transparent mechanism for recording and transferring property rights in the stock market;
• - stimulate the performance of the function of capital mobilization by the market;
• - contribute to the flow of funds into the manufacturing sector and the real economy, use taxation to stimulate investment in production;
• - restrain the increase in income that can be obtained as a result of financial speculation. To do this, it is necessary to restrain fluctuations in the currency and stock markets (including the government securities market), that is, to limit speculative processes in the financial market;
• - encourage investment in production through lending, since the inability to use the loan leads to the expansion of the risky and speculative stock market.

• 20.1. The essence of the financial market and its role in the economy
• 20.2. Structure of the financial market
• 20.3. Functions of the financial market
• 20.4. Models of organization of the financial market and their features
• 20.5. Financial Market Participants

The essence of the financial market and its role in the economy

The effective functioning of the economy of any state in modern conditions impossible without a developed financial market.

Financial market- a rather complex and multifaceted economic category associated with various processes occurring in the economy. This predetermines the ambiguity of opinions about the nature, structure and functions of the financial market.

In economic literature financial market in a broad sense, it is characterized as an organizationally formalized economic space where purchase and sale funds, tools and services. In a narrow sense, the financial market is defined as a set of economic relations that ensure the mobilization and redistribution of temporarily free Money, financial resources, circulation of securities between market entities.

The economic basis of the financial market is made up of various forms of capital (cash, loan, fictitious), interconnected. The developing real sector of the economy requires the formation of certain financial relations and institutions. The use of capital in the sphere of production (commercial and industrial capital) in the form of long-term productive assets creates income in cash, or money capital. The amount of money-capital at some point exceeds the needs of production, and it can be loaned out for a certain payment. The development of market relations leads to the growth and concentration of loan capital in specialized financial and credit institutions and the formation of a loan capital market, as well as to the accumulation of funds from individual investors through the issuance of special documents - securities. For issuers that issue securities and mobilize funds in this way, there is a real increase in capital. The investor, on the other hand, increases his capital fictitiously, certifying the investment of capital with securities that give the right to receive income, therefore the capital embodied in them is called fictitious. The development of the fictitious capital market leads to the fact that securities acquire their own value, the ability to be sold and bought, i.e. become investment goods and form the securities market. The latter is closely interconnected with the economic processes taking place in the markets of real, loan and money capital, reflecting their unification, fragmentation, redistribution. Each form of capital has a different functional purpose and influences the formation of the structure of the financial market. The financial market ensures the movement of securities, credit resources and monetary funds that act relationship objects in this market. The subjects of relations are the state, enterprises (organizations) of various forms of ownership, individual citizens.

Representing a complex system of economic relations and forms of their organization, the financial market provides financing for economic growth, achieving macroeconomic balance, intersectoral and international capital flows, and increasing the investment activity of business entities. The financial market uses various financial instruments, there are specific financial institutions that form an extensive and diverse market infrastructure. With the help of the financial market, the accumulation of funds of internal and external investors is carried out, their redistribution among business entities, the state, which provides funding for priority production, scientific and technical programs, allows increasing production capacity, increasing resource potential, and implementing social events.

Raising funds through the financial market is possible only with a wide choice of its instruments, a developed system of exchange and over-the-counter trading, well-established accounting, and the availability of mechanisms to protect market participants from risks. The financial market also provides investors with various investment options, provides them with income on capital, participation in the financial results of business entities.

The financial market plays an important role not only in the reproduction process, ensuring the free movement of funds of enterprises (organizations), but also in the organization of public finances. In the financial market, funds are sought to cover the budget deficit in a non-inflationary way.

So the financial market accumulates temporarily free capital from a variety of sources distributes it effectively between multiple users directs to the most efficient areas, accelerates the turnover of capital And contributes to economic development.

Depending on the volume and nature of the operations carried out, financial markets can be divided into national, regional and international ones.

National financial markets ensure the movement of cash flows within the country and the relationship with world financial centers. Subjects of the national economy carry out operations in these markets. The degree of involvement of national markets in the operations of the world financial market depends on the degree of integration of the country's economy into the world economy, the state of its currency and credit systems, the development of the stock market, the taxation system, etc.

Regional financial markets serve a specific area. The countries included in this region coordinate their monetary and credit policies, create regional financial and monetary organizations.

International financial markets serve the intercountry movement of capital, implementing a system of financial, currency and credit relations between individual states, corporations different countries, residents and non-residents. World financial centers were formed, where the largest stock exchanges and banks, specialized financial institutions were concentrated.

Financial market models and their features

Structure of the financial market

The essence of the financial market and its role in the economy

The financial market and its importance in the development of the economy (2 hours)

The effective functioning of the economy of any state in modern conditions is impossible without a developed financial market.

Financial market- a rather complex and multifaceted economic category associated with various processes occurring in the economy. This predetermines the ambiguity of opinions about the nature, structure and functions of the financial market.

In economic literature financial market V broad sense It is characterized as an institutionalized economic space where the purchase and sale of financial resources, tools and services is carried out. IN narrow sense the financial market is defined as a set of economic relations that ensure the mobilization and redistribution of temporarily free funds, financial resources, the circulation of securities between market entities.

The economic basis of the financial market is made up of various forms of capital (cash, loan, fictitious), interconnected. money capital, this is the capital of the real sector of the economy (industries, services and trade), which is used in the form of production assets that create income in cash (in other words, money capital). Excess money capital is accumulated and can be loaned (loan), thus. money capital is transformed into loan capital. The loan capital market is formed by special financial and credit institutions. ABOUT fictitious capital we can say when investors acquire various securities that have their own value and ability to be sold and bought, thereby fictitiously increasing or decreasing the investor's capital.

Each form of capital has a different functional purpose and influences the formation of the structure of the financial market. The financial market ensures the movement of securities, credit resources and monetary funds that act relationship objects in this market. The subjects of relations are the state, enterprises (organizations) of various forms of ownership, individual citizens.

The financial market plays an important role not only in the reproduction process, ensuring the free movement of funds of enterprises (organizations), but also in the organization of public finances. In the financial market, funds are sought to cover the budget deficit in a non-inflationary way.

So the financial market accumulates temporarily free capital from a variety of sources distributes it effectively between multiple users directs to the most efficient areas, accelerates the turnover of capital And contributes to economic development.

Depending on the volume and nature of the operations carried out, financial markets can be divided into national, regional and international ones.

National financial markets ensure the movement of cash flows within the country and the relationship with world financial centers. The subjects of the national economy carry out operations in these markets.

Regional financial markets serve a specific area. The countries included in this region coordinate their monetary and credit policies, create regional financial and monetary organizations.

International financial markets serve the intercountry movement of capital, implementing a system of financial, currency and credit relations between individual states, corporations of different countries, residents and non-residents. World financial centers were formed, where the largest stock exchanges and banks, specialized financial institutions were concentrated.

Main Functions financial market are:

Active mobilization of temporarily free capital from various sources.

Determination of the most effective directions for the use of capital in the investment sphere. A specific pricing system for various financial market instruments identifies the most effective areas and directions of investment flows, ensuring high level return on capital employed;

Efficient redistribution of accumulated free capital among its numerous consumers.

Accelerating the turnover of capital, contributing to the activation of economic processes, the formation of a rational structure of the economy.

Formation of market prices for financial assets and services that most objectively reflect the emerging ratio of supply and demand for them;

Implementation of qualified mediation between sellers and buyers of financial assets through special financial institutions, which helps to accelerate cash and commodity flows, reduce social costs;

Creating conditions for financial market participants to reduce various kinds risks. The financial market has its own tools and mechanisms that protect against adverse changes in market conditions, investment risks, technical and other types of risk.

Financial Market Participants can be divided into groups according to their functional characteristics.

1. Main contributors- sellers and buyers of financial assets (currency values, credit resources, securities). Creditors, issuers of securities and currency sellers act as sellers in the financial market, while borrowers (borrowers), investors and currency buyers act as buyers.

2. Financial intermediaries. This group is represented by various financial, credit and investment institutions, the main of which are banks, investment companies and funds, trust companies, investment dealers and brokers.

Financial intermediaries, being professional participants in the financial market, bring together buyers and sellers of financial assets, thereby facilitating access to it for non-professional investors. At the same time, it is possible to distinguish brokers - intermediaries that carry out transactions at the expense and on behalf of the client, charging commissions, the amount of which, as a rule, depends on the amount and efficiency of the transaction, as well as dealers - intermediaries that carry out transactions at their own expense and on their own behalf and receive profit from the difference in the prices of sale and purchase of financial assets.

3. Organizations serving the financial market. They are represented by numerous subjects of its infrastructure: stock and currency exchanges, settlement and clearing organizations, consulting firms, rating agencies, etc. All these organizations are not directly involved in investing, transactions with financial assets, but influence it by creating conditions for the effective operation of other participants in the financial market, providing settlement services, storing securities, collecting, analyzing and disseminating information.

4. Bodies of state regulation and self-regulation in the financial market. Since the development of the financial market is one of the directions of the financial and monetary policy of the state, the state regulates and controls the activities of entities in the financial market, contributes to the creation of the necessary legal framework, a system of information on the state of the market and ensures its openness to participants, controls the stability and security of the financial market, etc. In addition, the state acts as a major participant in the financial market, using various financial instruments for monetary regulation.

Currently, the main regulation and supervision in the Belarusian financial market is carried out by the National Bank and the Ministry of Finance of the Republic of Belarus.

The normal development of the economy constantly requires the mobilization of temporarily free funds of individuals and legal entities and their distribution and redistribution on a commercial basis between various sectors of the economy. In a well-functioning economy, this process is carried out in the financial market. It carries out the accumulation, mobilization, distribution and redistribution of temporarily free funds of individuals and legal entities, as well as the state.

Financial market is a system of relations that arises in the process of exchanging financial assets. Elements financial market, i.e. financial assets are money in national and foreign currencies, securities, precious metals and stones (with the exception of jewelry and household products from them and scrap of these products), deposits and credit capital.

One of the central ideas of the functioning of the financial market is the theory efficient market, which implies information efficiency. An efficient market is one in which all relevant information is reflected in prices. All information is divided into three groups:

1. Past information reflecting the previous state of the market (rate dynamics, trading volumes, demand, supply).

3. All information, including both public and inside information, which is known only to a narrow circle of people (for example, due to official position).

The market is efficient in relation to any information if it is immediately and completely reflected in the price of an asset, which makes this information useless for making excess profits. Depending on the amount of information that is immediately and completely reflected in the price, it is customary to distinguish three forms of market efficiency:

1. Weak form assumes that current market prices for the asset fully reflect past information. Possessing classified information, an investor can receive super-profits.

2. Moderate form assumes that current market prices reflect not only price changes in the past, but also all other public information.

3. The strong form assumes that all information, both public and internal, is reflected in current market prices. In this case, super profits cannot be obtained even by people who have classified information.

The financial market includes the following segments:

1. The securities market.

2. Credit market.

3. Foreign exchange market.

Financial market participants are buyers and sellers of financial assets, as well as intermediaries between them. The entities that carry out operations in the financial market are called financial institutions. These include banks, stock exchanges, investment institutions. Investment institutions include the following entities:

1. Investment consultant - an individual or legal entity professionally engaged in the provision of paid consulting services regarding the issuance and circulation of securities.

2. An investment fund of the following types:

· joint-stock investment fund - any open joint-stock company, the exclusive activity of which is the issue of its own ordinary registered shares to raise funds and their subsequent investment in other securities and bank accounts;

· Mutual investment fund (UIF) – a property complex without the creation of a legal entity, the trust management of whose property is carried out by trust companies.

3. Investment company - an association that invests capital through direct and portfolio (through an intermediary) investment and performs some functions of commercial banks. Investment companies are represented by the following types:

· holding - a parent company that owns a controlling stake in other subsidiaries and specializes in management;

financial company - an organization registered in the form of a business company ( joint-stock company, societies
limited liability company, additional liability companies) under the laws of the country of its location.
In turn, it includes the following companies:

ü insurance - a legal entity carrying out insurance activities on the basis of a license;

ü trust (trustee) - a commercial organization that manages the client's property;

ü leasing - a legal entity that, at the expense of borrowed or own funds, acquires property
and provides it as a subject of leasing to the lessee for a fee for a certain period of time in temporary possession and use with or without transfer of ownership of this object.

4. Non-profit financial institution (non-state Pension Fund, credit union, mutual insurance society, self-regulatory organization of professional participants in the financial market).

Financial intermediaries perform the function of matching borrowers and lenders or traders. They provide the following services to financial market participants:

1. Contribute to reducing the cost of operations while increasing their number.

2. Pool their clients' savings for a larger investment in the primary market.

3. Diversify risk, which is difficult for individual savers to do on their own.

4. Transform the term of the primary security into different maturities of indirect liabilities.

Professional activity in the financial market is licensed. It is represented by the following types:

1. Intermediary (broker's activities) - making transactions for the purchase and sale of securities at the expense and on behalf of the client.

2. Commercial (dealer's activities) - execution by a professional securities market participant of transactions for the purchase and sale of securities on its own behalf and at its own expense with the obligation to conclude transactions according to the declared data legal entity buying and selling prices.

3. Custody activities - activities for accounting, settlements and storage of securities, as well as for settlements, accrual and payment of income on securities.

4. Trust (trust) activities - activities for the management of securities owned by a specific person by right of ownership, carried out by another person by transferring these securities to him for a certain period of time
and trust management.

5. The activity of an investment fund, which provides for the issuance of shares in order to mobilize investors' funds and invest them on behalf of the fund in securities, as well as in bank accounts, deposits and deposits, in which all the risks associated with such investments are fully attributed to account of the fund's shareholders and are realized by them by changing the current price of the fund's shares.

6. Activities of a specialized registrar (an independent registrar) that ensures the performance of the functions of the holder of the register of shareholders, carried out under an agreement with the issuer.

7. Clearing activity is an activity to determine mutual obligations (collection, reconciliation, correction of information on transactions with securities and preparation of accounting documents on them) and their offset on the supply of securities and settlements on them.

The ratio of supply and demand, as well as the level of prices for financial assets, is constantly changing in the financial market as a whole and in its individual segments. This general state The dynamics of individual elements of the financial market is a very complex economic phenomenon, since it is formed under the influence of many heterogeneous and multidirectional intra-market and macroeconomic factors. The degree of activity of the financial market, the ratio of its individual elements are determined by studying its conjuncture. The conjuncture of the financial market is a form of manifestation of a system of factors (conditions) that characterize the state of demand, supply, prices and competition in the market as a whole, its individual types and segments.

Receiving any income in business is most often associated with risk, and the relationship between these two parameters is directly proportional: the higher the required or expected return, the higher the degree of risk associated with the possible non-receipt of this return. Yield is the ratio of income to investment. Financial risks is the probability of losses due to a high degree of uncertainty in the results of transactions with financial assets, as well as the influence of many economic and non-economic factors, including random ones. The risk associated with owning an asset can be divided into two parts:

1. Market (systemic, non-diversifiable risk).

2. Specific (non-market, diversifiable risk).

Market risk is associated with the dynamics of the economy as a whole, with generally significant events (war, revolution, etc.). If, for example, there is a recession in the economy, then this is reflected in the profitability of financial instruments. Market risk cannot be ruled out as it is system-wide. Specific risk is associated with the individual characteristics of a particular asset, and not with the state of the market as a whole. The owner of a share in an enterprise, for example, is exposed to the risk of losses due to a strike at this enterprise, the incompetence of its management, etc. Such a risk can be reduced to almost zero by choosing a widely diversified portfolio, i.e. investing money in shares of more than one company , and in the shares of several (specially selected) companies at once.

Financial risks are classified as follows:

· if possible insurance (insurable, non-insurable).

· according to the level of financial losses (acceptable, critical, catastrophic).

By sphere of origin (external, internal).

If possible, foresight (predictable, unpredictable).

· By possible consequences(causing financial losses resulting in lost profits).

The following can be distinguished types of financial risks:

Inflationary risk is the risk that when inflation rises, cash incomes depreciate in terms of real purchasing power faster than they grow;

currency risk - the danger of currency losses associated with a change in the exchange rate of one foreign currency against another during foreign economic, credit and other currency transactions;

· liquidity risk is the risk associated with the possibility of losses in the sale of financial assets due to changes in the assessment of their quality and use value;

interest rate risk - the risk of losses as a result of excess interest rates paid on borrowed funds over rates on extended loans, etc.

Modern development the domestic economy provides for the active participation of the state as a regulatory and governing body. The degree of government intervention in emerging markets should be significantly higher than in developed financial markets. State regulation of the financial market carried out by the following methods:

1. Direct (administrative), i.e. by establishing mandatory requirements for financial market participants, licensing professional activities in the market, ensuring transparency and equal awareness of market participants, maintaining law and order. Thus, direct regulation exists in the form of a system of legal norms (laws, decrees, resolutions, etc.) and state bodies (Ministry of Finance of the Republic of Belarus, National Bank of the Republic of Belarus, etc.) that ensure their implementation.

2. Indirect (economic), providing for the implementation of a certain tax, monetary policy, policy in the field of formation and use of funds state budget, state property management, etc.

The financial market of the Republic of Belarus is at the stage of formation. The most developed segments are the credit and currency markets. The securities market is most actively represented by the government securities market. The volumes of both exchange and over-the-counter transactions in corporate securities are minimal.

Over the past two decades, there has been an acceleration in the process of globalization of financial markets, i.e., the access of investors to the financial markets of the whole world is expanding. This found expression in the formation of the global financial market. It is regulated by various kinds of international agreements and international institutions. The development of financial globalization is stimulated by:

· uneven economic development and distribution of financial resources;

· unbalanced current balances of payments, acute shortage in most countries of their own resources for investment, covering budget deficits, carrying out socio-economic reforms, fulfilling debt obligations on domestic and foreign borrowings;

introduction of modern electronic technologies that allow real-time transactions.

Forms of financial globalization are:

1. International trade.

2. Foreign direct investment.

3. International market of financial borrowings, etc.

Essence and structure of the financial market

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.

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.

The role of the financial market

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 operation 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.