Financial market and its structure

The financial market and its structure is quite a popular and interesting topic for today. The financial market of the planet includes national and international markets that ensure the accumulation, direction and redistribution of money between market participants through various financial institutions in order to achieve the optimal supply-demand ratio for capital.

The financial market and its structure play a crucial role in the world economy. The monetary sector, which includes the financial and credit sectors, is a fairly specific formation with incomes and turnover. The financial market is designed to provide financial services to the public and supply it with money in the right place at the right time.

We can say that money is a specific commodity in the financial market. The financial market is a system of some relations and a certain mechanism for the collection and subsequent redistribution on the basis of competition of financial resources between states, regions, industries and individual units.

The financial market and its structure are rather complicated. They divide it into a number of sectors, including stock, insurance, investment, foreign exchange, and credit. The object of purchase and sale are financial resources. However, it should be noted that there are some differences in transactions in different sectors of the financial market. If, for example, in the market of loans money is sold and bought as such, then the stock sells the rights to the already created or future cash income.

The financial market and its structure can be viewed from various points of view. The financial market is not only a means for redistributing money in the economy, but also an indicator of the overall state of the economy of the state and the world. Its essence is not only in the redistribution of finance, but also in determining the different directions of this very redistribution.

It is in the financial market that you can determine the most effective areas where you can apply monetary resources. The structure of the financial market is usually represented in the form of a combination of the market of money, capital and the credit market. Under the money means the area of financial instruments that have a circulation period of up to a year. The capital market is called the market of long-term and medium-term assets, that is, bonds, shares and loans. Credit, however, is a market for both long-term, medium-term, and short-term loans. Practically between them you can not draw a clear boundary.

The work of the financial market is very closely related to such a notion as the interest rate, that is, the price of the commodity "money", which was sold in the form of a loan. It is the formation of a rational system of interest rates that is one of the most important functions of the financial market, since it has a great influence on the efficiency of the economy.

The functions of the financial market are quite extensive. These include, above all, overflow and redistribution of capital. Also functions are the following: intertemporal trade, which reduces the costs of the cycles of the economy, the acceleration of centralization and concentration of capital, the promotion of the process of reproduction without interruption.

The financial market of Russia at the present stage of development has its own peculiarities. First, this is a fairly sharp differentiation of the level of development by region. Secondly, the restriction of the instruments used by the nomenclature. It should also be noted that commercial banks are the main agents in the financial market and have a predominant position. One of the features is the narrowness of the financial market, which is caused by two sectors - equity securities and foreign currency.