home Remote work and freelance The structure of the modern securities market. Abstract: The structure of the modern securities market

The structure of the modern securities market. Abstract: The structure of the modern securities market

Market valuable papers, despite its unity, can be conditionally divided into several segments, which are also called markets. They are characterized by specific conditions, trading participants, securities circulating on them.

The securities market is divided into two types:

1) primary;

2) secondary.

If you try to give the most general definitions, then "primary market" is the term used to describe when securities first appear in the public arena, usually in exchange for cash.

The secondary market is a term used to describe cases where the second and subsequent tranches of outstanding securities appear in the public arena; it is also the market in which the securities that have previously appeared on the market are traded.

Legislatively primary securities market is defined as the relationship that develops when issuing (for securities investment securities) or when concluding civil law transactions between persons incurring obligations for other securities and the first investors, professional participants in the securities market, as well as their representatives.

Thus, the primary market is the market for the first and repeated issues of securities, in which their initial placement among investors is carried out.

In the primary securities market, all types of existing securities are sold: shares and bonds of enterprises, short-term government securities, government foreign currency loan bonds, financial instruments (various certificates issued by banks, bills of exchange). Sales in the primary market are carried out through stock stores, as well as the current system intermediaries: brokers and commercial banks.

The most important feature of the primary market is the full disclosure of information for investors, allowing them to make an informed choice of a security for investment. Money. All activities in the primary market serve to disclose information:

Preparation of the issue prospectus, its registration and control by state bodies from the standpoint of the completeness of the data presented;

Publication of the prospectus and subscription results, etc.

A feature of domestic practice is that the primary securities market still prevails. This trend is explained by such processes as privatization, the creation of new joint-stock companies, the financing of public debt through the issuance of securities, the re-registration of the state's foreign currency debt through the stock market, etc.

The primary market includes:

Stock market;

Bond market.

There are two forms of the primary securities market:

Private accommodation;

public offer.

Private accommodation characterized by the sale (exchange) of securities to a limited number of previously known investors without a public offer and sale.

public offer - this is the placement of securities during their initial issue by public announcement and sale to an unlimited number of investors.

The relationship between a public offering and a private offering is constantly changing and depends on the type of financing that enterprises in a particular economy choose, on the structural changes that the government is implementing, and other factors.

It is very important to note that the primary market is the market for new issues and is the method that most borrowers use to raise new resources. For this market to work successfully, it is vital that savers and investors have the confidence that they are investing their money in this market for good reason. A weak primary market will undermine secondary market liquidity. Therefore, there is a need to provide accurate information so that investors can compare with other forms of investment and decide whether to invest in each new issue. In other words, a good primary market should be selective in order to be able to judge value.

On the other hand, the issuer needs a good primary market in order for the offer to purchase securities to reach the widest possible audience of potential investors, which should allow him to get the most favorable price for the offered securities.

There are several methods for listing securities on an organized primary market. These include:

1) direct invitation by the company. The Company invites the public to subscribe for its securities at a fixed price through the publication of a prospectus; all necessary formalities and underwriting (guaranteeing the issue) are carried out by the issuing company (usually an investment bank / securities company);

2) offer for sale. This method can be used in a situation where one of the original or existing shareholders wants to offer their shares to the public. The company may organize a syndicate of banks and brokerage firms that purchase the entire issue for distribution to their customers. Old shareholders may be the first to purchase the offered shares;

3) tender offer. The investor is invited to participate in the tender for the purchase of shares at the lowest price. After the deadline for submission of applications, the company's financial advisers calculate the ¬strike price-, which will allow the issuing company to raise the maximum required financing, the exercise price can be lowered if the company targets the issue to a particularly wide range of shareholders (a large number of shareholders owning a small number of shares each) . As a result of filing bids a company can acquire much more funds than it would if it allowed speculative investors to cash in on first-day trading premiums, which can happen if the issue price is underpriced. If someone acts as an underwriter for an issue, then it (the issue) will be sold at the minimum tender price;

4) private placement. A method in which an investment bank subscribes to an offer of shares by first identifying a small group of clients to whom it then resells the shares. Alternatively, an investment bank may be used as an agent and be responsible for finding the ultimate investors for the issuing company. This method is often cheaper for the company than a public offer, because even though the price may be somewhat lower for clients (in order to make investments more attractive and compensate for their potential illiquidity), it will still be less than the cost of underwriting, which is not necessary in this case.

However, it should be noted that the regulators of the securities market usually insist on protecting the interests of investors, which is determined by the requirement for a minimum number of shareholders and a certain percentage of shares that must be sold to the public (usually 25%). Last requirement, as a rule, is carried out through the use of a second investment bank or brokerage firm, which is engaged in the distribution of shares. Using a placement method can be not only the cheapest method for small releases, but also the fastest. There is also a higher likelihood of a successful issuance, especially when there are already companies queuing to subscribe or sell, which can absorb all available funds;

5) reverse absorption by conditional issue of securities. The method by which a private company can achieve a listing in a situation where a public company offers its shares in exchange for the opportunity to purchase the private company's assets; if the controlling interest passes to private company, then in fact it can be considered that it has privileges in terms of raising funds, since it received a listing;

6) admission of shares to the quotation on the stock exchange. When using this method, there is no need to issue new securities, but the company's share capital must be sufficiently paid up in order to gain access to a listing or listing on the exchange. It should be understood that with this form of proposal, the company does not raise any new funds. The company is required to provide a document of admission, but is generally not required to provide a prospectus unless, following admission, the company plans an additional issue of shares or fundraising activities.

While one of the main challenges facing the securities market is to provide an efficient mechanism for attracting capital for economic growth, it is equally important that there are opportunities to profit from the risk taken by those who provide the capital.

Under secondary stock market refers to the relations that develop during the circulation of previously issued securities in the primary market. The basis of the secondary market is made up of transactions that formalize the redistribution of spheres of influence of foreign investors' investments, as well as individual speculative transactions.

The most important feature of the secondary market is its liquidity, i.e. the possibility of successful and extensive trading, the ability to absorb significant volumes of securities in a short time, with small fluctuations in rates and at low implementation costs.

The secondary securities market is divided into an organized (exchange) market and an unorganized (over-the-counter or "street") market.

Classification of the securities market by organization of trade includes:

Exchange market;

Over-the-counter (retail) market;

Electronic Market.

By types of securities circulating, in particular, on Russian market stand out today:

1) government securities market;

2) the stock market, in which, in turn, there are three main segments (sometimes they are called echelons): "blue chips" (the most liquid shares of the largest Russian companies), "second tier" shares that are approaching them, but have not yet reached the appropriate liquidity , and shares of enterprises that practically do not appear on the market;

3) the securities market of local importance (in the majority - municipal bonds or bonds of the subject of the federation);

4) markets for promissory notes of different issuers;

5) markets for derivative securities (mainly futures).

The most developed is stock market. It is characterized by high turnover, which allows you to create a highly efficient infrastructure that can take on most of the risks and significantly speed up transactions and reduce unit overhead costs. The price for this is a strict standardization of the transaction, severe restrictions on the activities of market participants, increased obligations in relation to maintaining liquidity and reliability.

Organized market (exchange) is an auction type market. It is characterized by public vowel auctions, open competitions between the buyer and the seller with the presence of a mechanism for compiling bids and offers for sale, which can serve as the basis for concluding transactions. This is the circulation of securities on the basis of firm stable rules between licensed professional intermediaries - market participants on behalf of other market participants.

The stock market is the trading of securities on the stock exchange. This is always an organized securities market, trading on it is carried out strictly according to the rules of the exchange and only between exchange intermediaries, who are selected among all other participants.

The organized or exchange market is exhausted by the concept of the stock exchange as a special, institutionally organized market in which the securities of the most High Quality and operations in which professional participants in the securities market perform.

Unorganized market (free, retail, over-the-counter) this is the circulation of securities without observing the rules uniform for all market participants. Trade takes place spontaneously, in contact between the seller and the buyer. Information about completed transactions is not recorded.

In the case when transactions are small, it is still unprofitable to execute them through large specialized trading systems. This is due to purely economic parameters. In this case, the buyer goes directly to the dealer and buys paper directly from him. As an example, we can point to many of our banks that trade in savings loan bonds for the public. This is a special segment of the securities market, which differs from the exchange market in many ways. It is called the retail (over-the-counter) market (OTS - market from the English Over the Counter - trade from behind the counter).

Note that sometimes, on the contrary, very large transactions are made on the over-the-counter market, for example, the purchase and sale of a controlling stake. In general, this is a market for individual, non-standardized transactions.

The over-the-counter market is the trade in securities bypassing the stock exchange, the sphere of circulation of securities that are not admitted to quotation on stock exchanges. New issues of securities are also placed on the OTC market. The OTC market is organized by dealers who may or may not be members of the stock exchange.

An organized market requires that stocks and bonds offered for sale be specially registered and satisfy a set of additional conditions, providing maximum business information about the business for the financial support of which these securities are issued. Their purchase and sale is carried out by application on the stock exchange, and all procedural issues related to this are strictly regulated by the rules of this exchange and state legislation.

The free market in this sense does not impose strict requirements on sellers and buyers. Legislative provisions are in place to ensure full control over entrepreneurial activity. To the same extent as in the organized market, companies issuing securities bear administrative and criminal liability for deceiving or misinforming the buyer. Intermediaries act in accordance with official rules and regulations for customer service, and the purchase and sale of securities itself is subject to legal registration and has an absolutely legal character.

An organized securities market - a system of stock exchanges - has inalienable features:

1) transactions are frequent;

2) there is almost never a big gap between the demand price and the offer price;

3) transactions are carried out in a short time, as a rule, there are no significant price fluctuations.

All this is ensured by a set of purposeful organizational actions.

It is necessary that the circle of holders of securities of each company be as wide as possible. In addition, short-term purchase and sale transactions should be facilitated in every possible way. Other an important factor is the presence of a large number of large companies, but the organized market must be represented by medium and small companies.

It should also be noted that the organized market has the ability to self-accelerate and self-decelerate. An active market creates the impression of easy liquidity of securities, which stimulates their purchase. In addition, it attracts with a variety of opportunities, which increases the number of operations on a credit basis.

A free securities market can be described as a market that does not have a fixed location, transactions in which are carried out outside the exchange. Another name - the telephone market - indicates the main way transactions are carried out.

These include the following:

Issues aimed at a limited circle of potential buyers, requiring special methods of distribution;

Small releases;

Papers with a very high price;

Papers in which supply matches demand, i.e. the buyer is widely known and it is easy to distribute papers;

Securities issued on the security of real estate;

Papers closely related to regional economic complexes or social and industrial infrastructure;

Paperless form of issue, when the issuer does not want to advertise himself.

Also, transactions with shares are made on the free market. large companies circulating in the exchange system.

The main participants in the free market are brokerage and dealer offices, which are characterized by a relatively narrow specialization in types of securities and transactions, as well as banks and investment companies. In turn, banks are divided into investment banks, the main subject of which is the subscription to the distribution of shares and bonds of various corporations, and commercial banks, which are mainly engaged in the sale of federal and local bonds on the free market. A significant number of transactions in the free market are carried out not on a commission, but on a net (or dealer) basis. This means that services are rendered to clients for the sake of income from the price difference - from the subsequent resale by the dealer of securities at a higher price or from their purchase for clients at a lower price.

The free market is always not only under state control, but also under the control of an association that unites these market entities. In all developed capitalist countries, participants in the free market, as well as participants in stock exchanges, are subject not only to legal, but also to professional and qualification control.

Commissions in the free market are not standardized in any way general rules. In fact, commissions range from the minimum values in the organized market to 5% (and sometimes even higher) of the transaction amount in the free market.

The secondary market consists of two parts. One of these parts can be described as a market for "used" securities. The second part consists of additional issues of securities already in circulation, regardless of whether the issue results in raising new funds or not.

The following are the methods that are used to obtain a listing for new issues of already existing securities that are already listed:

1) listing through execution or conversion. New securities or new issues of securities already traded may be listed by exercising a new share option (employee or executive bonus schemes) or by converting a listed security into another form of security, or by subscribing warrants for conversion into another form. valuable papers;

2) release of rights. The company wants to raise additional funds through the issuance and listing of a new issue of ordinary shares under preferred terms at a fixed price (usually slightly below the current market price). If one of the shareholders does not want to acquire these rights, then they can be sold outside the company, and the premium, that is, the amount of the excess of the issue price, will be credited to the account of the refused shareholder;

3) open offer. The offer is made to shareholders, inviting them to subscribe to purchase additional shares at a fixed price, but (unlike in a rights issue) the number of shares purchased will not necessarily depend on the number of shares the shareholder already owns. This process results in a higher price, as shareholders who are willing to pay more will receive more shares. From a regulatory point of view, there is a trade-off between the preemptive right principle and the fact that the company raises additional funds;

4) bonus or capitalization issues. Shares are created as a result of the capitalization of reserves and are distributed free of charge to existing shareholders in proportion to the number of shares they already own.

Securities can be traded on traditional and computerized (electronic) markets.

In the electronic market, trading is carried out through computer networks, uniting the respective fund intermediaries into a single computer market, which is characterized by:

Lack of a physical location where sellers and buyers meet;

Full automation of the trading process to enter their applications for the purchase and sale of securities in the trading system.

Electronic securities markets arose later than exchanges - with the advent of modern means of communication and informatics. Currently, the turnover on them is comparable to the exchange. There were several such systems in Russia, but today only the Russian trading system really works.

Trade in it is carried out by professional brokers and dealers, united in the PAUFOR association (Professional Association of Participants stock market Russia) and NAUFOR (National Association of Russian Stock Market Participants). In these trading systems there are trading in shares of "blue chips" (RTS) and shares of the second tier (RTS-2). Unlike stock trading consists mainly in the mechanism of execution of transactions: by setting in electronic system quotes for the security of interest, the trader-market-taker contacts the market-maker who issued the quote directly and concludes a standardized deal.

Markets of derivative securities. Separately, it is worth dwelling on the role of the organizer of trading in the derivatives markets. Since a futures is a mutual obligation to buy (respectively sell) the underlying security at a certain moment and at a predetermined price, the role of the organizer of the auction is, first of all, to ensure the fulfillment of this obligation. This is achieved by making both parties to the transaction a special pledge - margin. In the event that one of the parties fails to fulfill its obligations, the margin is used to compensate for the loss to the other party.

The securities market is a collection economic relations arising between various economic entities regarding the mobilization and placement of free capital in the process of issuing and circulating securities.
Fictitious capital is capital represented in securities that regularly bring income to their owners in the form of dividends or interest and make independent, different from real capital, movement in the securities market.

Functions and types of securities markets.

Functions:
1.common market features:
- commercial, related to making a profit from operations in the securities market
- price function - the process of formation of market prices, their constant movement, etc. is ensured.
- information function, i.e. bringing information about the objects of trade to participants in the securities market
- regulatory, i.e. creation of rules for trade and participation in it, the procedure for resolving disputes between participants, the establishment of priorities and the formation of management and control bodies.
2. specific functions:
- redistributive - funds are redistributed between sectors of production and areas of activity
- function of insurance of price and financial risks.

Market types:
I Primary market - is associated with the issue of securities and primary owners participate in it.
Secondary market - involves the circulation of previously issued securities (transfer of rights from one owner of a security to another)
II Organized market - circulation of securities based on the rules established by the governing bodies between licensed professional intermediaries - participants in the securities market on behalf of other participants.
Unorganized market - the circulation of securities without compliance common rules
III Exchange market, that is, trading in securities on stock exchanges (organized)
OTC market (street) - trading in securities bypassing stock exchanges (organized or unorganized).
IV Cash market - a market with immediate execution of transactions within 1-2 business days.
Derivatives market - a market where various types of transactions are concluded with a maturity of more than 2 days.
V Traditional Market
computerized market.

Participants of the securities market:
Individuals or organizations that sell or buy securities or service their circulation or settlements on them, or these are persons entering into certain economic relations with each other regarding the circulation of securities.

Groups of participants in the securities market:
Issuers - issue securities into circulation.
Investors buy securities.
Stock intermediaries - traders providing communication between issuers and investors in the securities market: organizations engaged in brokerage activities (on behalf and at the expense of the client); organizations engaged in brokerage activities (purchase and sale of securities at their own expense or at the expense of the company they represent); securities management activities.
Organizations serving the securities market: organizers of the securities market, namely stock exchange and OTC organizations; clearing centers (clearing houses, clearing centers - netting system); depositories - provide services for the storage of securities; registrars - maintain registers of shareholders and other holders of securities; information organizations implementing information and analytical systems for investment support.
State bodies for the regulation and control of the securities market: government offices, the Ministry of Finance, the Central Bank, other ministries and departments.

Listing is a market support system that creates the most favorable conditions for an organized market, allows you to identify the most reliable and high-quality securities and ways to increase their liquidity. The listing procedure means permission to participate in the trading of certain securities.

8. Currency market: essence and structure.

The foreign exchange market in the Russian Federation is represented by such organizations as:
1. Central Bank of the Russian Federation
2. MICEX
3. authorized commercial banks (which have a license from the Central Bank for foreign exchange transactions).

The foreign exchange market is divided according to the same principle as the securities market: organized and unorganized, exchange and over-the-counter.
Currency values are circulating on the foreign exchange market, which include: foreign currency; securities denominated in foreign currencies, and precious metals with the exception of jewelry and other household products, as well as scrap of such products.
Currency operations:
current - transfers to and from the Russian Federation of foreign currency for settlements without deferred payment for exports and imports, as well as lending for a period of not more than 180 days (this includes the receipt and provision of financial loans, transfers of interest, dividends and other income on deposits, investment loans and other operations related to the movement of capital); non-commercial transfers ( wages, pensions, etc.)
currency transactions associated with the movement of capital. These include: direct investment, portfolio investment; transfers in payment for property rights and other rights to real estate; providing and receiving financial loans for a period of more than 180 days.
other foreign exchange transactions.

The securities market is a set of economic relations regarding the issuance and circulation of securities as tools for financing and developing the economy. Securities are commodities on the RZB. Therefore, RZB is a securities trading market. RZB is an integral part of the financial market.

RCB structure. Depending on the time of receipt of securities on the market, it is divided into primary and secondary. For the first time, securities appear on the primary market, where they are sold by issuers to the first owners. All subsequent operations with securities take place in the secondary market. C.b. cannot appear on the secondary market, bypassing the primary.

Depending on the forms of organization of transactions with securities. There is an exchange and over-the-counter securities market. Depending on the type of sold securities. they distinguish the money market (securities with a validity period of up to 1 year) and the capital market (securities with a validity period of more than 1 year). Economic entities satisfy their needs for working capital, as a rule, in the money market, and for long-term investment capital - in the capital market.

RCB functions:

1) through the issuance of securities, the savings of individuals and legal entities are converted into investments and used to expand and develop production;

2) with the help of the RZB, capital is transferred from aging industries to new, high-tech industries. As a result, the structure of production becomes rational;

3) through the purchase and sale of shares, there is a change of ownership between shareholders;

4) through the purchase and sale of debt securities, the composition of creditors is changed and the payment of the debt is ensured;

5) by issuing securities, the deficit of state and municipal budgets is covered;

6) with the development of RZB, risk capital (venture capital) increases, which allows developing new branches of production, and the owners of securities to receive high income;

7) with the help of RZB, investors get the opportunity to insure risks by concluding various transactions and using derivative financial instruments.

Participants in the securities market include its direct participants, as well as state and public bodies for its regulation and control. Direct participants in the securities market are divided into intermarket and intramarket.

Intermarket Participants - these are persons who take part in the work or in the maintenance of the work of several markets at once, including the market. Such persons usually include various groups of investors, information, consulting, rating agencies and other professionals who provide the necessary services to participants in many markets at once.

Intramarket Participants - these are persons who work primarily or exclusively for the RZB. They are divided into non-professional and professional market participants.

Non-professional market participants - these are issuers and any investors working for the RZB.

Professional participants of the RZB- These are persons who carry out professional activities in this market. only if there is a special license for the implementation of a certain type of professional services in this market. These include:

brokers - These are organizations that conclude transactions for the purchase and sale of securities for their clients at the expense of the clients themselves;

dealers - these are organizations that sell and buy securities on their own behalf and at their own expense on the basis of prices announced by them;

management companies - these are organizations that carry out trust management of securities and invested in them customer funds;

registrars - these are organizations maintaining lists (registers) of securities holders;

depositaries - these are organizations that store and/or record securities of market participants;

clearing organizations - these are organizations that provide settlement services to participants in the securities market;

market organisers. these are organizations that facilitate (create the necessary conditions) the conclusion of transactions on the securities market.

6.1. Structure of the securities market

The securities market is a part of the financial market (the other part is the bank loan market), where securities are issued and bought and sold. It is both an indicator of a market economy and its main financial lever.

According to the nature of the circulation of securities, it can be considered as primary, i.e., representing the initial placement of issued securities among investors in the financial market, and how secondary where the purchase and sale of previously issued securities is carried out.

In addition, in accordance with world practice, the securities market is divided into two markets that are largely independent of each other: organized(exchange) and free(over the counter). AT general view the concept of "organized market" refers to transactions concluded on the stock exchange, while the concept of "free market" refers to transactions in securities over the counter, which are carried out between the buyer and the seller through intermediaries.

An organized market requires that stocks and bonds offered for sale undergo special registration and satisfy a set of additional conditions that provide maximum business information about the business for which these securities are issued to finance. Their purchase and sale is carried out by application on the stock exchange, and all procedural issues related to this are strictly regulated by the rules of this exchange and state legislation.

The free market in this sense does not impose strict requirements on sellers and buyers. There are legislative norms that provide full control over entrepreneurial activity. To the same extent as in the organized market, companies issuing securities bear administrative and criminal liability for deceiving or misinforming the buyer. Intermediaries act in accordance with official rules and regulations for customer service, and the purchase and sale of securities itself is subject to legal registration and has an absolutely legal character.

Let us dwell in more detail on the fundamentals of the functioning of an organized and free securities market.

An organized securities market - a system of stock exchanges - has four essential features:
Transactions are made frequently
There is almost never a big gap between the bid price and the offer price;
· transactions are carried out in a short time, as a rule, there are no significant price fluctuations.

All this is ensured by a set of purposeful organizational actions.

First of all, it is necessary that the circle of holders of securities of each company be as wide as possible. In addition, short-term purchase and sale transactions should be facilitated in every possible way. Another important factor is the presence of a large number of large companies, but the organized market must be represented by medium and small companies.

The free market is the second equally important area for the distribution and circulation of investment resources. For some types of securities, it is inferior, and for others it is significantly superior to the exchange system. This applies primarily to state and municipal bonds, shares of many banks, insurance and investment companies. Together with them, a huge number of issues usually circulate on the free market, which, for various reasons, cannot be traded on the stock exchange. These include the following:
Issues targeted at a limited circle of potential buyers, requiring special methods of distribution;
Small releases
papers with a very high price;
· papers in which the supply corresponds to the demand, i.e. the buyer is widely known and it is easy to distribute papers;
Securities issued on the security of real estate;
· papers closely related to regional economic complexes or social and industrial infrastructure;
· paperless form of issue, when the issuer does not want to advertise himself.

Also on the free market, transactions are made with the shares of large companies circulating in the exchange system.

In conclusion, it should be noted that commissions in the free market are not regulated in any way by general rules. In fact, commissions range from the minimum values in the organized market to 5% (and sometimes even higher) of the transaction amount in the free market.

Stocks and bods market- this is a set of economic relations regarding the issuance and circulation of securities, as well as the forms and methods of this circulation.

Stocks and bods market represents the sphere of realization of economic relations expressed financial capital, and is part of the financial market, where capital is accumulated and then invested in the real sector of the economy.

Stocks and bods market- an independent market in which securities are traded.

The most important tasks of the securities market are to ensure flexible cross-industry redistribution of investment resources, attract investment to enterprises, create conditions for stimulating savings and their subsequent investment.

To date, the legislative and legal framework for the securities market has been created in Belarus:

Civil Code of the Republic of Belarus;

Laws of the Republic of Belarus: “On securities and stock exchanges”, “On joint-stock companies, companies with limited liability and societies with additional responsibility”, “On nominal privatization checks of the Republic of Belarus”, “On denationalization and privatization state property in the Republic of Belarus”, “On depositary activities and the central securities depository in the Republic of Belarus”;

Legislative acts of the Republic of Belarus on the problems of the securities market, which are regulated by decrees of the President of the Republic of Belarus, resolutions of the Council of Ministers of the Republic of Belarus, the State Securities Committee of the Republic of Belarus, the National Bank of the Republic of Belarus, the Ministry of Finance of the Republic of Belarus, the Ministry of State Property of the Republic of Belarus and other ministries and departments, having the right to regulate the activities of the securities market or be its participants.

The Law of the Republic of Belarus "On Securities and Stock Exchanges" dated June 28, 1996 provides the following definition of securities: owner of securities in relation to the issuer.

However, in accordance with Civil Code Republic of Belarus, adopted on December 7, 1998 and entered into force on July 1, 1999, securities include “government bonds, bonds, promissory notes, checks, deposit and savings certificates, bank savings book to bearer, bill of lading, shares, privatization securities and other documents that are classified as securities by the legislation on securities or in the manner prescribed by it.

The Regulation “On Derivative Securities”, approved on January 21, 1997 by the National Bank of the Republic of Belarus, also includes options, futures and warrants to securities circulating in the territory of the Republic.

Types of securities:

1. Stock- a security that indicates the introduction of a certain share in the capital joint-stock company and entitles, by virtue of this, the right to its owner to receive a share of the profits of the joint-stock company in the form of a dividend, as well as, with the exception of certain cases, the right to vote on general meeting shareholders.

2. Bond- a kind of securities issued by the state, municipal authorities, companies, banks, corporations as a debt obligation to attract additional funds.

3. bill of exchange- a written promissory note issued by the borrower of money (the drawer) to his creditor (the drawer) and certifying the right of the latter to demand payment by the drawer of the sum of money indicated in the bill after a certain period of time.

4. Check- type of security, monetary instrument statutory a form containing a written order from the owner of a current, settlement or other account (drawer) to the credit institution in which the account is located, to pay the check holder a certain amount of money specified in this document.

5. Warrant- 1) a warehouse certificate, which is a document of title against which commodity exchange transactions are made and settlements are made.

2) the right to acquire shares in the future (after their issue) at a fixed price.

6. Bill of lading- a document containing the terms of the contract for the carriage of goods by sea, issued by the sea carrier to the sender at the time of acceptance of the goods on the ship and certifying the acceptance of the goods for carriage by sea.

Functions of the securities market: general market functions inherent in any market, and specific ones that distinguish the securities market from other markets.

General functions include:

A commercial;

pricing;

Informational;

Regulatory.

Specific Features:

Provides attraction of temporarily free financial resources business entities and public funds for their subsequent investment in production, services, etc., contributes to the pooling of capital through corporatization, as well as the issuance of debt securities (bonds, bills, certificates of deposit);

Through the securities market, the redistribution of funds, financial resources between business entities, sectors of the economy, the movement of capital from inefficient industries and enterprises to more efficient ones is carried out.

The securities market serves as one of the regulators monetary circulation and credit relationships.

The state, by issuing various types of government securities, covers the state budget deficit with non-inflationary means (without money and credit emission);

The securities market provides insurance (hedging) of financial risks, investment risks.

The use of securities market instruments allows you to more effectively manage financial condition enterprises.

Structure of the securities market: primary and secondary markets. The primary securities market combines the construction of a new issue of securities and their initial placement among investors, that is, the acquisition of securities by their first owners.

The secondary securities market refers to the relations that develop during the circulation of securities previously issued and placed on the primary market.

Secondary market segment: stock exchanges that provide regular trading in securities, their liquidity, pricing, etc.

stock exchanges represent an institutionally organized exchange securities market, where securities of the highest quality are traded and professional participants in the securities market operate.

The over-the-counter market covers transactions with securities performed outside the stock exchanges and is a computerized securities trading system with simplified rules for admitting securities, participants, and trading technologies.

The securities market of the Republic of Belarus consists of the following main segments:

Corporate securities (shares, bonds);

Government securities (GKO, GDO);

Municipal securities (housing bonds),

Securities of commercial banks.

Nominal privatization checks (IPCh) "Property".

The infrastructure of the securities market has been created in the republic. Its elements primarily include stock exchanges and a depository system.

OJSC "Belarusian Currency and Stock Exchange" - the only one in the republic trading floor, on the basis of which a nationwide system of exchange trading was created in all major segments of the financial market: currency, stock and futures.

Certificate of Deposit of the Commercial Banks of the Republic of Belarus - a security certifying the amount of the deposit (deposit) made in the Commercial Banks of the Republic of Belarus and the rights of the depositor ( legal entity, individual entrepreneur) to receive after expiration due date the amount of the deposit (deposit) and interest on it in the Commercial Banks of the Republic of Belarus, including in any of its branches (departments).

Government securities of the Republic of Belarus are government debt securities issued to cover the state budget deficit and placed through closed auctions.

State regulation securities market. Among the main government agencies that determine the rules of activity in the securities market include:

The President, the National Assembly, the Council of Ministers, which form the stock market on the basis of the adoption of relevant laws and regulations, develop a strategy for the development of the securities market in the republic, exercise control over its development.

The National Bank and the Ministry of Finance of the Republic of Belarus, which perform two functions. The first function is the actual regulation of the stock market through the issuance of legislative acts. The second is direct participation in the securities market.

State Committee on securities of the Republic of Belarus, whose functions include:

State regulation, control and supervision of the securities market, their issue and circulation, as well as professional activities in securities;

Registration of issues of securities;

Licensing professional activity on securities;

The Ministry of State Property of the Republic of Belarus determines the procedure for issuing and circulation of privatization checks, and also selects enterprises subject to corporatization, regulates and controls the activities of check and investment funds, registers issues of their securities and securities of corporatized enterprises;

The Ministry of Economy, the State Tax Committee, the State Customs Committee, which issue legislative and regulatory acts relating to the functioning of the stock market.