Value and functions of the financial market
Value of the financial market consists in maintenance of mobilization of the free capital and maintenance of economic growth of the country.
Functioning of the financial market enables to redistribute resources on "horizontal" instead of the "vertical" way inherent in command economy. At horizontal movement direct communications between managing subjects as returnable redistribution of financial resources operate. It stabilizes a financial position of the enterprises, branches and as a whole economy due to operative translation of means into those spheres and objects where in them the greatest requirement is felt, proceeding from a principle of the greatest efficiency of their use.
Thus, the financial market plays a key role in economy for some reasons: first, due to it begins possible{probable} to invest money resources in manufacture that allows to increase capacities of the country, to accumulate resource potential; second, with the help of the financial market development of the enterprises and the branches providing the maximal profit to investors is facilitated; thirdly, having poured the capitals, carried out in the financial markets, promotes acceleration of scientific and technical progress. The financial market provides the fastest movement and an effective utilization of financial resources.
The basic function of the financial market will consist in intermediary in movement of money resources from owners to users of money resources. Besides it is possible to relate the following to functions of the financial market: the financial market will mobilize temporarily free monetary capital from diverse sources; effectively distributes the accumulated free capital between numerous end users; defines the most effective directions of use of the capital in investment sphere; forms market prices for separate financial tools and the services objectively reflecting the developing ratio between a supply and demand; carries out the qualified intermediary between the seller and the buyer of financial tools; forms conditions for minimization of financial risk; accelerates a revolution of the capital, that is promotes activization of economic processes.
Types of the financial markets
Classification of the financial markets can be made to various attributes:
1. On scale of activity - the national market, the international market, the regional market, the world market
2. On character of interaction of the seller and the buyer - the market of the seller, the market of the buyer
3. By kinds of addressing financial tools - the market of interbank credits, the currency, share, insurance market, etc.
4. Under forms of the organization of trade - exchange, outside of exchange trade and trading systems
5. Under number of the owner of the financial tool - the primary market, the secondary market, the tertiary market
6. On methods of pricing - the market of a clean competition, the market of clean monopoly, etc.
The financial market can be primary, secondary and tertiary.
In the primary market new releases of liabilities are placed. Usually it occurs with assistance of large investment institutes.
In the secondary market already issued tools are sold and bought. This market is formed as a result of excess of demand on the part of investors above the offer of the certain tools in the primary market.
The tertiary market is a trade in derivative financial tools. In a basis of fast development of this market occurrence of the new tools lays, called to stimulate with the variety development of the financial market.
With development of economic communications in the world and an interlacing of monetary streams between the countries great value distinction and connection between such concepts, as world, international get, the regional and national financial markets. Widest of them - the world financial market which represents set of the national and international markets, each of which possesses the features, known independence and isolation.
Sometimes do not do distinctions between concepts « the global financial market » and « the international financial market ». Really, the international financial market, being the system which has stood apart from the national markets of market relations, closely connects them. However, covering external operations in the national markets, it does not include internal, actually the basic operations and consequently cannot be named the world market.