The value of the stock exchanges on the economy is very large. The main reason is that a very large part of the national wealth of all countries turned into a movable property. State joint-stock company in the growing use as loans. With the development of credit relations created new types of obligations, and each of them is multiplied by itself, with new values. For sales of debt it took the market and that market was specially created institution - the Stock Exchange.
According to their legal status, stock exchanges may be associations (USA), joint stock companies (UK, Japan) or government bodies subordinate to the Ministry of Finance (France). Exchange members can only be specialized in operations with securities exchange (brokerage) firms. Key positions on major stock exchanges usually takes 10-15 lead brokers, each of which has a huge equity.
The whole range listed on the stock exchanges in financial instruments is determined by three main types: 1. government (municipal, federal) bonds 2. equities 3. derivatives (derivatives) Government and other bonds are used to reduce the deficit of the corresponding budget. They are distinguished by certain profitability which is derived from the purchase price, and minimal risk, because in these papers are given government guarantees (which, as shown by the recent crisis in Russia is not a prerequisite of execution).
The use of derivatives by the existence of the already mentioned above, hedgers and speculators.
Company shares are available for borrowing. For a corporation to achieve the right quotation of its shares on the stock market is very difficult. Adoption of the shares of the Corporation for quotation on the New York Stock Exchange, for example, means that its entry into "high society" of American business. Such rights are making a world-class corporation with a reputation for having a large number of shareholders and the market value of stocks, as measured by at least hundreds of millions of dollars. The dimensions of the securities market simply stunning. Today in the capitalist countries, the value of all shares and bonds in circulation exceeds the annual gross national product. Shareholders' equity as a living a double life, having two forms of existence. On the one hand, it's real capital, a functioning system of social reproduction. On the other - share capital represented in the form of securities. It is this double real capital called fictitious capital and has a special move beyond the real capital of circulation, as a specific product, and is drawn to the stock exchange.
Category fictitious capital reflects the further development of capitalism, and as the monopolization of the production is enhanced. Source of income for the fictitious capital is completely hidden. It creates the idea that the securities have the ability to generate revenue by themselves. This is particularly evident in public bonds. This form of fictitious capital, not only has no value, but often does not represent any real capital: for interest on bonds payable primarily from taxes. Due to the significant increase in the size of public debt securities market increasingly filled with securities issued by governments. This is especially noticeable in countries where stock markets are directly controlled by governments and are widely used to refinance the state budget, such as Italy, to a lesser extent Germany. Splicing of monopolies and the state is manifested in their joint operations with fictitious capital. The state is increasingly acting in the securities market as a debtor, the creditor and the guarantor of the transactions. At a time when inflation is primarily a result of the growing state budget deficit becomes widespread, the relationship with the state of fictitious capital aggravates inflation, and increasing state control over the operations of fictitious capital to cover the budget deficit could lead to crises.
As already mentioned, most of the securities sold through a specially created institution - the stock market. Exchange Committee, which permits the sale of securities after the test and determines the rules of trade. Direct all operations on the stock exchange perform specific mediators - middlemen or brokers who specialize in certain transactions, have information about transactions carried out, stock prices, etc. And while the charter brokers of stock exchanges generally do not have the right to make his own deals, but in practice this rule is rarely enforced. In some countries, stock brokers are state officials (eg France), in others - representatives of private firms (for example, in U.S., UK). Dimensions circulation of securities, as well as the intensity of this process is now characterized by, for example, that in the U.S. and Japan, the market price of shares listed on stock exchanges in these countries, more than 5 trillion. dollars, ie About 80% of the shares (at cost) for the year change hands. It must be borne in mind that the stock exchange - not all of the securities market, in addition to her by a huge turnover of over the counter. In the United States in 1991 through-the-counter turnover has been more than 25% (by value) are in the sale of securities.
The dimensions of the securities market reflects its role in the movement of capital. This role is so significant that it is no exaggeration to say, without understanding the mechanisms of the circulation of securities can not penetrate into the essence of many processes in the modern capitalist reproduction. The securities market is a system that has quite complex, branched structure. Classification of this market can be carried out on different grounds. First of all, we should distinguish market segments according to specific types of securities in circulation. In this respect, stand the bond markets, stocks, as well as some new special types of securities, which include convertible shares, warrants, futures and options.
The securities market is divided as to the primary market on which the raising of capital through the sale of new securities, and secondary, on which the appeal previously issued securities. Finally, the total stock market turnover in the form of organization is made up of exchange and OTC transactions in securities.
To quote the stock market may only securities that are listed, ie satisfy certain requirements of the Securities Exchange this. On different exchanges have different criteria for admission of securities to quotation. This is the legal status of securities, the degree of market capitalization, minimum number of shares, means the distribution of shares from shareholders, etc. In this regard may be informal, such factors as the significance of the national economy and its position in the industry, economic stability and sustainability, etc.
Practical application listing found in the calculation of stock indices, developed by various news agencies, investment or brokerage firms. Stock indexes are key indicators to measure, study and forecast the overall situation in the stock trade and the situation in individual sectors. Stock indexes may be calculated by different methods: some stock indices are simple averages (arithmetic means) of the movement of stock prices, while others are indexes in the traditional sense, ie weighted average where the weights are the most basic indicators of the market value of publicly traded shares of each included in its membership of the corporation. In terms of the gauge indices may also be different: some of them may represent the overall market, while others - specific industry or market sector.
Among the most important and popular in the world indices are: - Dow Jones (industrial, transport, utilities and component - a simple average); - Indexes "Standard and Poor" ("Standard & Poor's, 500" - weighed on the market value of equity index of 500 corporations, "Standard & Poor's 100" - a weighted index of stocks of corporations that have recorded stock options on the Chicago Board Options Exchange) and other indices .