The structure of the securities market and its versatility

An organized securities market is an integral economic system that forms the demand and supply for them. Securities are issued in the form of forms, various certificates. They can be used by the owners to conduct mutual settlements, and as collateral. The Central Bank may be registered or bearer.

Participants of the exchange market are investment institutions, issuers and investors. The stock market of securities is inherently part of the overall financial market, through which rapid activation of investments in various economic sectors is carried out.

The structure of the securities market contains the following elements in itself: Subjects; Market (exchange and over-the-counter); Regulating state bodies; Individual organizations and their own infrastructure. The structure of the securities market is complex and multifaceted, has many different characteristics. Therefore, in order to evaluate it correctly, it is necessary to consider each of its elements in detail. Let's start with the subjects of the securities market.

The subjects of the market include investors, issuers, professional institutions. In turn, the Central Bank's stock market is divided into primary and secondary markets. In the primary private market, first and repeated issues of securities are placed among individual investors in strictly limited quantities. On the primary public market securities are placed, available to all investors in an unlimited amount. The secondary market is also divided into two categories: the over-the-counter and the stock markets. On the exchange market, securities of large firms that meet market standards are realized (they have a large number of shares in circulation, secured by a degree of reliability). OTC market works with other investors - large companies, whose turnover and size are somewhat below the established requirements of the exchange market. Moreover, the OTC market is characterized by a very high level of liquidity of various stocks. In some countries, the volumes of the OTC market are sometimes equal and significantly ahead of the stock market (the New York and Russian stock exchanges). Sale of government securities is also carried out through the over-the-counter market.

The structure of the securities market within itself or otherwise in its own infrastructure contains the following departments. This is the legal department, information, depository, settlement and clearing and registration. Moreover, all these departments, having a different orientation, solve the general tasks of the market. And this, above all, the overall organization of the trade process, the formation of a price rate, the provision of all the bidders with the necessary information, lending to the state, ensuring liquidity, etc.

The structure of the securities market also includes different types of stock exchanges. For example, these are public stock exchanges, private and mixed.

At the same time, the very process of organizing trading of any valuable assets on them, the methods and the mechanisms used for conducting trades differ little. It all depends on the degree of development of the stock market, the number of securities, as well as the number of orders for their sale or purchase, on the change in price dynamics. The following methods of trading are mainly used. This is a simple auction and a double. In turn, simple trades can be organized in the form of a seller's auction, a buyer or in absentia. At the heart of the seller's auction is an increase in the price of the security in the bidding process. At the heart of the buyer's auction is the opposite. There is a decline in the price of the security in the bidding process. At the heart of the trade at the absentee auction is a limited number of valuable assets (CB) with an approved price threshold, which will be sold only a strictly defined time interval. After its termination, the seller considers all available orders and sells securities at a price proposed by the buyer above the threshold level or possibly equal to it.