Structure of the Financial Market

Concept and structure of the financial market . The financial market is understood as the sphere of manifestation of relations in the economy arising between sellers and possible buyers of monetary and financial resources, investment values (as a tool for the formation of financial resources), and also about their real and use value.

The structure of the financial market is determined by the following components. This currency, capital, securities (stock), cash (cash, cash and cash in other forms). In addition, there is a market for gold and deposits (deposits) in commercial banks.

The financial market is an informal or organized trading system for various financial instruments. In the system of this market there are processes of money exchange, lending and capital mobilization.

The main role in this market is assigned to financial institutions that are engaged in channeling cash flows from their owners to temporary borrowers. The role of the goods is played by money itself and, in addition, securities.

The structure of the financial market characterizes the state of the country's economy. The consequences of integrating Russia's financial market into international relations in the financial market can be identified as positive or negative. Among the latter, there is a certain dependence on the state of international markets.

The basic components of the financial market are the money market and the capital market. Therefore, the structure of the financial market begins with these mandatory elements.

The money market consists of the currency, accounting, interbank markets. A feature of this component of financial relations is the involvement in it of only short-term (up to one year) loans.

The money market is a special sphere of the loan capital market , which is characterized by the provision of these capitals in loans for a period of not more than a year. They are used mainly for the maintenance of non-core and working capital. In this market, the money supply appears in an impersonal form, in which all traces of its origin are erased.

The foreign exchange market plays a key role in ensuring the interaction of financial markets on a global scale. With its help, relations between buyers and sellers of currencies are established. The goods in these relations are any financial requirements, which are denominated in foreign currency. The participants are banks, exporters, investors, enterprises, individuals , etc. The structure of the financial market allocates this component a special role.

Accounting market - redistributes short-term funds in cash between credit institutions through the purchase and sale of securities with a maturity of up to a year. The market is based on the accounting and re-account operations of banks.

Interbank market - relations on attraction of temporarily free resources of credit institutions in cash, which are placed between banks in the form of short-term deposits.

The capital market is the sphere of commodity relations, in which long-term investment instruments are used. In this relationship, the demand for capital and its supply are intertwined. The infrastructure of the financial market considers this element as one of the key.

The capital market is traded with securities without maturity or with a term of more than a year. This market is necessary to ensure the needs of business entities in financing on a long-term basis.

The form of the loan capital movement is a loan. The sources of such capital are money resources that are released in the production process (the amortization fund of enterprises, part of working capital in the form of money, profits, savings of the population, the accumulation of the state, etc.).

The loan capital market has two links: the credit system (medium-term and long-term bank loans) and the securities market.