Video: The financial market is a tool for the redistribution of funds
2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:55
The financial market is a community of financial instruments and resources that allow you to buy and sell various assets, such as securities, precious metals and others. Its main function is to move free capital from one market participant to another. To put it simply, it helps the seller and the buyer find each other, like any kind of market.
The financial market is a tool that helps to exchange various benefits through a monetary equivalent, promotes capital accumulation, financial risk management and international trade. The global financial market is a tool that allows you to do the same on a planetary scale. The market can trade in any one specific asset. Then it is called specialized. The instruments of this market are the financial obligations of issuers - buyers of funds.
There are different sectors and market segments with different types of assets, services andinstruments that turn into them, as well as forms of sale and purchase procedures and various conditions for transactions. With the existing differences between the sectors of the financial market, there is an object with which they are united - free financial resources. The most significant is the division of the market into sectors for different types of services and instruments.
The financial market based on these principles is divided into:
- financial securities market;
- money market;
- futures market;
- debt capital;
- currency market;
- market of insurance products;
- real estate market.
The financial market is a set of tools and means that allow you to mobilize temporarily free financial resources and turn them into capital. The savings of the population, enterprises and the state not spent on consumption participate in trading processes in the financial market not for their savings, but with the aim of increasing them by making a profit. Some segments of the financial market can give very high rates of return, however, the risks are also very high. The transformation of savings, which could be kept "under the pillow" of the population and outside the turnover of enterprises, into capital allows stimulating and accelerating the growth of social production.
The financial market is a very effective tool that helps to effectively distribute the accumulated capital among end users. Hereveals the level of demand for various types of assets and contributes to its speedy satisfaction. With the help of market mechanisms, resources are distributed very efficiently. First of all, the investment needs of enterprises that can provide a high return on invested capital are met. The redistribution of investments in highly profitable areas allows increasing the production of demanded types of products, thereby increasing their supply on the market and balancing the price level.
Recommended:
Signs of the free market and its characteristics, the market mechanism and its functions. What are the main characteristics of a free market?
The article contains a description of the free market, its functions and characteristics that allow us to talk about the openness of the economic system
Financial model is an effective tool in decision making
A financial model is a special document that contains the calculation of certain financial indicators of a company based on information about the projected sales volume and planned costs. The main task of this model is to assess the effectiveness of the use of available resources
The recipient of budgetary funds is Misuse and targeted use of budgetary funds. Budget code
According to Art. 38 BC earmarked budget funds means that the appropriate appropriations and limits of obligations are communicated to specific entities. At the same time, the directions in which they will be spent are indicated
The stock market is The Russian stock market. American stock market
The stock market is part of the capital market. It acts as a kind of indicator of the world economy. The higher the level of capitalization of the latter, the more actively the state develops
Financial instruments are Financial instruments of financial policy. Securities
The global financial market is a complex entity that is largely subject to its own laws and principles of development. However, some of its fundamental features have long been studied and brought to a common denominator. Financial instruments are no exception. This is a real document or an officially registered electronic form that may enshrine some kind of legal agreement