Securities market is an economic institute within which take place sale and purchase transactions of securities between subjects of economy on the base of demand and supply. Also we can say that securities market is a system of interconnection between all participants (professional and nonprofessional) that provides effective conditions: to buy and sell securities, and also
- to attract new capital by means of issuance new security (securitization of debt),
- to transfer real asset into financial asset,
- to invest money for short or long term periods with the aim of deriving profit.
- commercial function (to derive profit from operation on this market)
- price determination (demand and supply balancing, the continuous process of prices movements guarantees to state correct price for each security so the market corrects mispriced securities)
- informative function (market provides all participants with market information about participants and traded instruments)
- regulation function (securities market creates the rules of trade, contention (споры) regulation, priorities determination)
Specific functions of the securities market
- Transfer of ownership (securities markets transfer existing stocks and bonds from owners who no longer desire to maintain their investments to buyers who wish to increase those specific investments. There is no net change in the number of securities in existence, for there is only a transfer of ownership. The role of securities market is to facilitate (облегчать) this transfer of ownership. This transfer of securities is extremely important, for securities holders know that a secondary market exists in which they may sell their securities holdings. The ease with which securities may be sold and converted into cash increases the willingness of people to hold stocks and bonds and thus increases the ability of firms to issue securities)
- Insurance (hedging) of operations though securities market (options, futures, etc,..)
Other articles related to "securities market, markets, market, securities":
... Regulating the business of the Stock Exchanges or any other securities market ... an issue, underwriters, portfolio managers, investment advisers and other intermediaries in the securities market ... and regulating all authorized self regulatory organizations in the securities market ...
... The Irish Stock Exchange operates three markets The Main Securities Market (MSM), the principal market for Irish and overseas companies, which admits ... The Main Securities Market is a regulated market as defined by Markets in Financial Instruments Directive (MIFID) ... It is the principal market of the ISE for larger, more established companies - Irish and international - from a broad range of industry sectors including financial services ...
... to work out the issue related to the Exchange service development on the securities market, and for reflection of further Exchange activities area, the general meeting of its shareholders decided to ... After adopting of the Temporary statute about securities issue and circulation and about the stock exchange, which was confirmed by the resolution of the ... of finance of Kazakhstan (before that time the law of Kazakh SSR "About securities circulation and stock exchange in Kazakh SSR" dated June 11 of 1991 provided only for registration ...
... Professional participants in the securities market - legal persons, including credit organizations, and also citizens registered as business persons who conduct the following types of activity Brokerage shall be ... Dealer activity shall be deemed performance of transactions in the purchase and sale of securities in one's own name and for one's own account through the public announcement of the prices ... Activity in the management of securities shall be deemed performance by a legal person or individual business person, in his own name, for a remuneration, during a stated period ...
Famous quotes containing the word market:
“Have you not heard of that madman who lit a lantern in the bright morning hours, ran to the market place, and cried incessantly: I seek God! I seek God!”
—Friedrich Nietzsche (18441900)