Economic instruments for the mobilization and redistribution of financial resources

The mechanism of the capital market provides a financial market development, representing a phenomenon of communication and interdependence in relation to other elements of the financial market. The main purpose of the capital market is the redistribution of financial resources in the economic system, representing a channel of financing the economy, complementing the company's own funds and budget allocations. Scope of the formation of supply and demand for capital accumulation and redistribution provides funds, the movement of fixed capital, maximize profits, maintaining the proportions in the economy. Through the capital market money savings involved in business, government and private entities that exceed their current needs, and as loan funds are directed to the development of manufacturing and other sectors of the economy. An effective financial and credit system of the capital market is one of the most important conditions for its economic development. Finance as a form of relationship capital markets involved in the circulation of capital in the reproduction process and are formed by investment demand and supply, where the demand side investment capital, and on the supply side, investment goods. Capital market mediates the exchange of investments and investment goods, ie, involves the transformation of investment in capital goods. It is characterized by the fact that it is collected and concentrated amount of savings that are then routed to the branch where they are immobilized for long periods. Businesses are in need of long-term capital as at the time of its inception, and during follow-up, the need to maintain, update and expand. Capital market reflects the processes of creating and implementing a variety of investment capital. In general, this market is the area of ​​capital movements in the industrial and financial forms. Unlike other elements of the financial market capital market is diverse, covering an infinite number of heterogeneous markets. In the structure of capital markets, above all, you can select items such as insurance companies, banks, investment companies, mutual funds and government agencies. The role of capital markets in the economy is manifested in three ways: the provision of loan capital to the state, enterprises and households. The capital market is a redistribution of finances in the production and financial forms. Production involves a form of investment property in real assets related to production and material benefits, ie Manufacturing investment organizations and the public to capital gains. Capital in the form of a factor of production in any particular material or real cash shell. Material and material embodiment of capital are not able to reproduce, they can just get old - mentally and physically - and to break down. Buildings, equipment, communications do not create new buildings, equipment, etc. Circuit capital is carried out by changing its forms - the conversion of commodity into money and vice versa. Monetary form of capital is a necessary condition for the continuity of circuits of fixed and circulating capital in material form, their reproduction. Cash capital is the self-expanding value, ie the cost of generating income is constant and continuous, which, in turn, generate new revenue. Commercial banks are the main instrument of accumulation of money capital. The concentration of capital, implying growth of individual capitals on the basis of investment in the production of profits, acts as an economic form of production concentration. Concentration leads to an increase in both individual and social capital. The concentration of capital is closely linked to the centralization of capital, which manifests itself in the absorption of one company by another or a voluntary association of several independent capital in the form of joint stock companies or in other forms. This process leads to the fact that social capital is not increased and redistributed. Taken together, these two processes, expressing a development of the social nature of production, are responsible for its growing concentration. The concentration and centralization of production are accompanied by a concentration of money, which inevitably means increasing the role of banks and other financial institutions. The quantitative expansion of bank capital goes into quality - developing the concentration and centralization of bank capital. Own and attracted resources of banks are huge, small banks are losing their positions and more being replaced by large. Developing processes of mergers and acquisitions in the banking sector. The concentration of production and financial capital are interrelated and interdependent. The development of large-scale production, on the one hand, requires a corresponding strengthening of banks, and the other - promotes their growth by increasing the volume of funds stored in bank accounts and deposits. The financial form is characterized by the inclusion of securities, ie financial investment is not necessarily presuppose the creation of new capacities and control over their use. For example, for major buyers is not the fact that the securities are a form of capital - cost and revenue and must be purchased in that capacity. The usual form of the mobilization of capital is to issue securities. The company may raise capital in two ways. In the first case, the company issues shares, that is, securities with variable income. In another case, the company issues bonds, that is, securities with fixed income, the holder of which is the creditor entitled to a refund of their capital and receive a fixed annual interest rate. In addition, the tools and instruments of ownership of the loan represented a generic form here, namely the form of securities. At the same time the capital in the hands of the lender in the form of securities. The main types of capital market transactions are the purchase and sale of securities, obtaining bank loans, commercial and mortgage loan. The financial market is a particular form of organization of the movement of funds in the national economy. It consists of two parts: a market of loan capital and securities markets. This is due to the division of capital into fixed and circulating capital. The objective prerequisite of the financial market is a mismatch between the needs for financial resources in some business entities or the state to availability of financial resources from others, which creates the ability to meet the needs of the former. In addition, many owners of temporarily free funds in the amount of individually may be small, whereas the need for financial resources tend to be huge. The financial market is designed to accumulate temporarily idle cash in a large number of small and large owners and transfer them to users. Thus, the financial market as an intermediary in the movement of funds from savers to investors, creating the latter financial resources. In the financial market there are 3 main subjects: the issuer - in need of additional financial resources and produces (emits) securities, the investor - owned free cash and make them available to the issuer under the securities, intermediaries: dealers or brokers who are working professionally in the financial market and help investors to effectively apply their free resources and issuers to acquire the necessary financial resources to them. At the same time in the financial market is the process of sale of temporarily free funds, which looks like a process of buying and selling securities. The financial resources of the issuer, the investor buys and buys securities investor from the issuer. In the role of the issuer are the state or entity. As an investor - individuals and legal entities. Brokers - middlemen who operate in the financial markets on behalf of the issuer or the investor in exchange for commission. Dealers can also speak, and his own name. Buying and selling securities, earn income by playing on the difference in prices (rates). With the financial market by cross-sectoral, inter-farm and interterritorial redistribution of money (including financial) resources. In the administrative-command system, the mechanism of this redistribution was primarily budget and redistribution of inter-farm - finance industries. In a market economy, financial market takes on large flows of financial resources and becomes an integral part. The main tool of the financial market the securities. The Civil Code (article 142), security is defined as the identification document (in compliance with the established form and obligatory requisites) property rights, the exercise or transfer shall be possible only in its presentation. It is through trading in securities by the accumulation of temporarily idle cash and investments at cost. The securities must contain the following information: a nominal price, maturity in the market, the redemption of Bonds, Fiscal Regime, interest and dividends and other Civil Code (st.143) the following types of securities: government bonds, bonds, bills, checks, deposit and savings certificates, bank savings book to bearer bill of lading, action, privatization securities and other documents that the securities laws or in the manner prescribed by them classified as securities. By the nature of the functioning of the securities are divided into two groups: debt and equity. Debt securities - bonds differ firmly fixed interest rate obligation to pay the principal sum at a specified future date. They suggest the loan contract. Equity securities - shares, are entitled to part of the assets of the Issuer, shall certify the right of the owner-shareholder for a share of the profits of the enterprise in the form of dividends and a portion of the property remaining after liquidation of the enterprise. Share entitles its holder to participate in the management of a public company. Any securities through several stages in its movement, ie have a life cycle: Stage 1 - Issue: Development of a prospectus, samples, determine the cost of registration, issuance of securities, and 2 stage - initial public offering. Can carry out themselves or through intermediaries, issuers, Stage 3 - secondary offering. It can be repeated, ie, Securities can be bought and sold many times, passing from one owner to another. Financial markets are divided into primary and secondary. In the primary financial market available for sale in new securities. In the secondary financial market by reselling the securities. The possibility of resale based on the fact that the investor freely owns and manages securities and may sell them to another investor. The purpose of the primary financial markets - to attract additional financial resources to invest in production, the social needs of scientific research. Secondary financial markets are for the reallocation of existing funds between entities in accordance with the needs of expanded reproduction, and other needs of society. Due to financial markets by capital flow to more efficient production, provides funding priority of industrial, scientific, technical and social programs. The securities may be placed on an open or closed subscription. In the public offering securities for sale to any interested person, which requires a special degree of investor protection. In the private offering securities placed among a limited circle of investors. Private Company may place their shares only by private subscription. Open Joint Stock Company - by public and private subscription. In the public offering the issuer is obliged to issue prospectus with information about the securities and financial condition of the company issuing them. An important role in the securities market are the stock exchanges. Securities that fall on the secondary market, traded on the exchange and OTC markets. The first stock exchanges appeared 200 years ago. Stock markets are an important regulator of financial flows and securities. The stock exchanges are required to be licensed and are developing their own terms, on which the selection of securities admitted to trading (listing). The value of the stock exchanges is large. They are an indicator of changes in share prices at a given time - are centers for financial information about the signaling dynamics of the stock market. They make the securities stringent requirements. On stock exchanges are allowed the highest-quality securities, which reduces risk. Therefore, the purchase of securities on the stock market is more robust. There are 3 types of exchanges: a closed market (in the auction may be involved only members of the exchange), stock market, with free access to visitors (the transaction is carried out only broker), stock exchange, under the control of government bodies (composed of a wide range of people.) Stock exchanges perform the following functions: carry out active operations by buying and selling securities, acting as a specific commodity, whose price depends on supply and demand, issuers of securities provide additional financial resources for industrial, scientific, and social needs; reallocate financial resources that lets you change the structure of social production, providing savers with the greatest opportunity for profit to use the accumulated funds. Financial markets play an important role in the reproduction process. They provide a free flow of financial resources. With their help, by raising funds from domestic and foreign savers, and transfer their investment enterprises, firms, associations, public authorities. Due to financial market ensures the participation of savers in the profits of employers. Business entities receive additional funding for expanded reproduction, public authorities at various levels - to finance government spending. The activity of the state as the borrower is an indicator of the state of its finances. The greater the amount of borrowing, the worse is the situation with the budget. The higher the proportion of public debt to GDP, the deeper the crisis of the state finances. Financial market solves several problems. The main ones are: mobilization of temporarily free financial resources, their effective deployment, maximizing income owners of free financial resources and civilized finance the budget deficit, is a new market mechanism of redistribution of financial resources between sectors, territories, entities in addition to the budget mechanism. Functioning of financial markets is of great economic importance. Thanks to them, it becomes possible to invest money in production, which allows to increase the capacity of the country, to accumulate the resource potential. With the help of financial market development is provided by businesses, industries, investors in order to obtain the maximum profit. Flow of capital in financial markets helps to speed up STP, more rapid introduction of scientific and technological achievements. All of this contributes to the most rapid movement and effective use of financial resources. In the financial market to find a free cash to cover the growing government spending. One element of the financial form of capital market are insurance companies, is a tool to mobilize funds for long-term and medium-term investment. The mechanism of the capital market provides a financial market development, representing a phenomenon of communication and interdependence in relation to other elements of the financial market. The main purpose of the capital market is the redistribution of financial resources in the economic system, representing a channel of financing the economy, complementing the company's own funds and budget allocations. Scope of the formation of supply and demand for capital accumulation and redistribution provides funds, the movement of fixed capital, maximize profits, maintaining the proportions in the economy. Through the capital market money savings involved in business, government and private entities that exceed their current needs, and as loan funds are directed to the development of manufacturing and other sectors of the economy. An effective financial and credit system of the capital market is one of the most important conditions for its economic development. Finance as a form of relationship capital markets involved in the circulation of capital in the reproduction process and are formed by investment demand and supply, where the demand side investment capital, and on the supply side, investment goods. Capital market mediates the exchange of investments and investment goods, ie, involves the transformation of investment in capital goods. It is characterized by the fact that it is collected and concentrated amount of savings that are then routed to the branch where they are immobilized for long periods. Businesses are in need of long-term capital as at the time of its inception, and during follow-up, the need to maintain, update and expand. Capital market reflects the processes of creating and implementing a variety of investment capital. In general, this market is the area of ​​capital movements in the industrial and financial forms. Unlike other elements of the financial market capital market is diverse, covering an infinite number of heterogeneous markets. In the structure of capital markets, above all, you can select items such as insurance companies, banks, investment companies, mutual funds and government agencies. The role of capital markets in the economy is manifested in three ways: the provision of loan capital to the state, enterprises and households. The capital market is a redistribution of finances in the production and financial forms. Production involves a form of investment property in real assets related to production and material benefits, ie Manufacturing investment organizations and the public to capital gains. Capital in the form of a factor of production in any particular material or real cash shell. Material and material embodiment of capital are not able to reproduce, they can just get old - mentally and physically - and to break down. Buildings, equipment, communications do not create new buildings, equipment, etc. Circuit capital is carried out by changing its forms - the conversion of commodity into money and vice versa. Monetary form of capital is a necessary condition for the continuity of circuits of fixed and circulating capital in material form, their reproduction. Cash capital is the self-expanding value, ie the cost of generating income is constant and continuous, which, in turn, generate new revenue. Commercial banks are the main instrument of accumulation of money capital. The concentration of capital, implying growth of individual capitals on the basis of investment in the production of profits, acts as an economic form of production concentration. Concentration leads to an increase in both individual and social capital. The concentration of capital is closely linked to the centralization of capital, which manifests itself in the absorption of one company by another or a voluntary association of several independent capital in the form of joint stock companies or in other forms. This process leads to the fact that social capital is not increased and redistributed. Taken together, these two processes, expressing a development of the social nature of production, are responsible for its growing concentration. The concentration and centralization of production are accompanied by a concentration of money, which inevitably means increasing the role of banks and other financial institutions. The quantitative expansion of bank capital goes into quality - developing the concentration and centralization of bank capital. Own and attracted resources of banks are huge, small banks are losing their positions and more being replaced by large. Developing processes of mergers and acquisitions in the banking sector. The concentration of production and financial capital are interrelated and interdependent. The development of large-scale production, on the one hand, requires a corresponding strengthening of banks, and the other - promotes their growth by increasing the volume of funds stored in bank accounts and deposits. The financial form is characterized by the inclusion of securities, ie financial investment is not necessarily presuppose the creation of new capacities and control over their use. For example, for major buyers is not the fact that the securities are a form of capital - cost and revenue and must be purchased in that capacity. The usual form of the mobilization of capital is to issue securities. The company may raise capital in two ways. In the first case, the company issues shares, that is, securities with variable income. In another case, the company issues bonds, that is, securities with fixed income, the holder of which is the creditor entitled to a refund of their capital and receive a fixed annual interest rate. In addition, the tools and instruments of ownership of the loan represented a generic form here, namely the form of securities. At the same time the capital in the hands of the lender in the form of securities. The main types of capital market transactions are the purchase and sale of securities, obtaining bank loans, commercial and mortgage loan. The financial market is a particular form of organization of the movement of funds in the national economy. It consists of two parts: a market of loan capital and securities markets. This is due to the division of capital into fixed and circulating capital. The objective prerequisite of the financial market is a mismatch between the needs for financial resources in some business entities or the state to availability of financial resources from others, which creates the ability to meet the needs of the former. In addition, many owners of temporarily free funds in the amount of individually may be small, whereas the need for financial resources tend to be huge. The financial market is designed to accumulate temporarily idle cash in a large number of small and large owners and transfer them to users. Thus, the financial market as an intermediary in the movement of funds from savers to investors, creating the latter financial resources. In the financial market there are 3 main subjects: the issuer - in need of additional financial resources and produces (emits) securities, the investor - owned free cash and make them available to the issuer under the securities, intermediaries: dealers or brokers who are working professionally in the financial market and help investors to effectively apply their free resources and issuers to acquire the necessary financial resources to them. At the same time in the financial market is the process of sale of temporarily free funds, which looks like a process of buying and selling securities. The financial resources of the issuer, the investor buys and buys securities investor from the issuer. In the role of the issuer are the state or entity. As an investor - individuals and legal entities. Brokers - middlemen who operate in the financial markets on behalf of the issuer or the investor in exchange for commission. Dealers can also speak, and his own name. Buying and selling securities, earn income by playing on the difference in prices (rates). With the financial market by cross-sectoral, inter-farm and interterritorial redistribution of money (including financial) resources. In the administrative-command system, the mechanism of this redistribution was primarily budget and redistribution of inter-farm - finance industries. In a market economy, financial market takes on large flows of financial resources and becomes an integral part. The main tool of the financial market the securities. The Civil Code (article 142), security is defined as the identification document (in compliance with the established form and obligatory requisites) property rights, the exercise or transfer shall be possible only in its presentation. It is through trading in securities by the accumulation of temporarily idle cash and investments at cost. The securities must contain the following information: a nominal price, maturity in the market, the redemption of Bonds, Fiscal Regime, interest and dividends and other Civil Code (st.143) the following types of securities: government bonds, bonds, bills, checks, deposit and savings certificates, bank savings book to bearer bill of lading, action, privatization securities and other documents that the securities laws or in the manner prescribed by them classified as securities. By the nature of the functioning of the securities are divided into two groups: debt and equity. Debt securities - bonds differ firmly fixed interest rate obligation to pay the principal sum at a specified future date. They suggest the loan contract. Equity securities - shares, are entitled to part of the assets of the Issuer, shall certify the right of the owner-shareholder for a share of the profits of the enterprise in the form of dividends and a portion of the property remaining after liquidation of the enterprise. Share entitles its holder to participate in the management of a public company. Any securities through several stages in its movement, ie have a life cycle: Stage 1 - Issue: Development of a prospectus, samples, determine the cost of registration, issuance of securities, and 2 stage - initial public offering. Can carry out themselves or through intermediaries, issuers, Stage 3 - secondary offering. It can be repeated, ie, Securities can be bought and sold many times, passing from one owner to another. Financial markets are divided into primary and secondary. In the primary financial market available for sale in new securities. In the secondary financial market by reselling the securities. The possibility of resale based on the fact that the investor freely owns and manages securities and may sell them to another investor. The purpose of the primary financial markets - to attract additional financial resources to invest in production, the social needs of scientific research. Secondary financial markets are for the reallocation of existing funds between entities in accordance with the needs of expanded reproduction, and other needs of society. Due to financial markets by capital flow to more efficient production, provides funding priority of industrial, scientific, technical and social programs. The securities may be placed on an open or closed subscription. In the public offering securities for sale to any interested person, which requires a special degree of investor protection. In the private offering securities placed among a limited circle of investors. Private Company may place their shares only by private subscription. Open Joint Stock Company - by public and private subscription. In the public offering the issuer is obliged to issue prospectus with information about the securities and financial condition of the company issuing them. An important role in the securities market are the stock exchanges. Securities that fall on the secondary market, traded on the exchange and OTC markets. The first stock exchanges appeared 200 years ago. Stock markets are an important regulator of financial flows and securities. The stock exchanges are required to be licensed and are developing their own terms, on which the selection of securities admitted to trading (listing). The value of the stock exchanges is large. They are an indicator of changes in share prices at a given time - are centers for financial information about the signaling dynamics of the stock market. They make the securities stringent requirements. On stock exchanges are allowed the highest-quality securities, which reduces risk. Therefore, the purchase of securities on the stock market is more robust. There are 3 types of exchanges: a closed market (in the auction may be involved only members of the exchange), stock market, with free access to visitors (the transaction is carried out only broker), stock exchange, under the control of government bodies (composed of a wide range of people.) Stock exchanges perform the following functions: carry out active operations by buying and selling securities, acting as a specific commodity, whose price depends on supply and demand, issuers of securities provide additional financial resources for industrial, scientific, and social needs; reallocate financial resources that lets you change the structure of social production, providing savers with the greatest opportunity for profit to use the accumulated funds. Financial markets play an important role in the reproduction process. They provide a free flow of financial resources. With their help, by raising funds from domestic and foreign savers, and transfer their investment enterprises, firms, associations, public authorities. Due to financial market ensures the participation of savers in the profits of employers. Business entities receive additional funding for expanded reproduction, public authorities at various levels - to finance government spending. The activity of the state as the borrower is an indicator of the state of its finances. The greater the amount of borrowing, the worse is the situation with the budget. The higher the proportion of public debt to GDP, the deeper the crisis of the state finances. Financial market solves several problems. The main ones are: mobilization of temporarily free financial resources, their effective deployment, maximizing income owners of free financial resources and civilized finance the budget deficit, is a new market mechanism of redistribution of financial resources between sectors, territories, entities in addition to the budget mechanism. Functioning of financial markets is of great economic importance. Thanks to them, it becomes possible to invest money in production, which allows to increase the capacity of the country, to accumulate the resource potential.

With the help of financial market development is provided by businesses, industries, investors in order to obtain the maximum profit. Flow of capital in financial markets helps to speed up STP, more rapid introduction of scientific and technological achievements. All of this contributes to the most rapid movement and effective use of financial resources. In the financial market to find a free cash to cover the growing government spending. One element of the financial form of capital market are insurance companies, is a tool to mobilize funds for long-term and medium-term investment. One of the circles of the capital market are also pension funds, which accumulate and mobilize long-term savings, ie pension funds can become an additional source to the state pension and an additional source of mobilizing long-term credit. Mutual funds specializing in investments in stocks and bonds, placing money in shareholders' equities. In general, the activities in the capital market includes the following stages: formation of savings - investment of resources - to provide income. Obtaining sufficient income and capital gains is the target market setting. Characteristics of income determine all the parameters of investing, ie investing resources, which is carried out in three stages: the selection of investment projects being implemented and carried out according to the chosen location of capital projects, is a continuous optimization or adjustment of the capital structure of the company by attracting external funding (issue of securities, bank loans ) and, finally, by the formation of savings and the distribution of dividends, is optimized ratio between investment and dividends through a sound dividend policy. <<>> Methods to solve these problems and determine, in fact, all indicators of the investment process of each firm. Components of the capital markets have pronounced specific features that define the development trends of both data components, and markets as a whole in the system. Capital market as part of a single financial market is the movement of capital in cash, and the laws of motion are defined as processes kapitalonakopleniya and specificity of the interaction of the capital market with the money market. The complex structure is characterized by a variety of overlapping groups of system elements that determine the different structures. Such structures are intertwined, and imposes its own characteristics in the capital market by changing the size and structure of investment demand. In the process of innovation in the capital market increases the need for capital to upgrade a brand new production processes, changing the requirements for the quality characteristics of capital. So, to ensure that commercial development of scientific and technological innovation, capital must satisfy at least two basic requirements: firstly, to be large, that is concentrated in a single center, and, secondly, to be mobile, that is to move quickly the most profitable sectors of the economy. Implementation of these requirements is a basic condition for resolving the contradiction between savings and investments within an enterprise and to resolve conflicts between markets and markets for investment goods investment in a social scale. <<>> The internal capital market is formed of a combination of structured and free of interventions, including intra-firm communication, as well as quantitative aspects, which contribute to the comparison of projects, especially in view of their efficiency target set company focused on increasing the cost of capital owners. Creation of capital market contributes to its flexibility, the ability to reallocate resources for projects and their parts, as well as to promote flexibility of their structures. The availability of information also describes the creation of capital market, ie, reliable information comes from the projects themselves. Creating a unified system is possible with the development of credit system and the investment sphere. The credit system accumulates all cash accumulation, and the shortage of their own individual savings or institutional investor can get a loan from a bank or investment company for investment purposes. Thus, the significantly increased mobility of capital, increases the speed of their movement in the manufacturing sector. At the same time accelerating the process of equalization of the rate of profit on a national scale. The result is a public evaluation of the marginal effectiveness, efficiency, use of investment capital. This assessment - interest on loans - an indicator of investment in any form, in any area of ​​the economy, determines the lower limit "threshold" of profitability of investment projects. Capital is usually considered the most mobile resource in the economy, but this mobility is not absolute.