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1.2 History of the Russian securities market

A civilized securities market is being formed in Russia again. Its formation is taking place for the second time; the first time it began to form under the decrees of Peter I, then it developed for 200 years, constantly increasing the turnover of capital. The most striking stage of its development is associated with the reforms of Stolypin - Witte at the end of the 19th - beginning of the 20th century. By the beginning of the First World War, Russia ranked fifth in the world in terms of exchange turnover. So, by the end of 1912, in various countries of the world, securities were in circulation on total amount 850 billion French francs. The first place was occupied by England with a turnover of 150 billion French francs. The United States accounted for 140 billion French francs, France - 115, Germany - 110, Russia - 35, Austria-Hungary - 26, Italy - 18, Japan -16 billion French francs. For the period from January 1, 1893, when the total amount of issued, state-guaranteed obligations was estimated at 2.272 billion rubles, until January 1, 1912, when it reached 5.782 billion rubles, the turnover of securities increased by 154%. This data does not include stocks and bonds issued by banks and businesses that did not have a government guarantee. Russian commercial banks actively used perpetual lending to joint-stock companies secured by securities. To do this, banks opened so-called on-call accounts, which enterprises could use depending on the amount of capitalization of securities pledged in the bank. In less than 15 years of the twentieth century. (from 1901 to 1913) the amount of balances on call accounts increased 4 times (from 206.3 to 849 million rubles). The share of non-guaranteed securities has steadily increased, crowding out guaranteed ones. So, if in 1912, 108 million rubles were issued against the security of guaranteed securities, and 355 million rubles for non-guaranteed securities, then in 1913, 93 million rubles were issued against guaranteed securities, and 547 million against non-guaranteed ones. rub. The increase in turnover with securities occurred primarily due to the purchase of securities by the population. Exchanges were in many cities of Russia. Large industrial enterprises distributed their shares among the population of the cities in which they were located, and quoted these shares on major markets . So, even the poor were involved in the game with the shares of the Maltsev factories located in the Bryansk district. The basis of the securities market in Russia was government debt. Thus, the 4% state rent played the role of an indicator that determined the general direction of pricing in the market. She determined the minimum amount of borrowed interest. However, due to the inaccessibility of the latter to the general public, the minimum level of borrowing interest in Russia was somewhat higher than the actual yield of 4% state rent, more or less approaching the yield of 4.5% on mortgage bonds of land banks. The average capitalization rate in Russia, as far as this can be judged from the yield of solid dividend securities, for example, bank shares, was 6-6.5% per annum. Recall that the system of gold backing the ruble that existed at that time ruled out a deficit option for financing the budget, and Russia did not know at that time what inflation was. Shares and bonds circulating on the Russian market were divided into registered papers and bearer papers. The first appeared on the Russian market much earlier. Bearer coupons were coupons that gave the right to receive dividends. Until 1895, the Treasury Department did not accept any claims of lost coupons, believing that the coupon gives the right to receive money to the person in whose hands it is. According to the rules adopted in 1895, if the owner of the lost bearer paper could prove the time of purchase of the paper, the time of loss and the circumstances under which the loss was made, then the ministry could issue capital and interest on it. Over time, the exchange turnover grew and with it the demand for bearer papers grew. The government and industrial companies were interested in issuing registered papers that would be in "firm" hands. Financial and banking circles in the stock market were interested in the growth of turnover. Government papers were issued by the government in both forms. So, the first loan in 1820 was issued exclusively in personalized tickets, devoid of even coupons. Since 1906, the owner of bearer bonds of state loans could replace them with registered bonds or so-called certificates of registered record. They gave the highest guarantee of the strength of possession of a security, since interest on a nominal paper was paid to the bearer of the coupon, while interest on a certificate of a nominal record was paid only to the person in whose name the certificate was issued, or to his attorney, provided that the certificate was presented and always only from that cash desk. which was indicated in the certificate. Thus, the certificate removed registered coupons from the category of bearer papers. Several securities of the same loan could be recorded in the certificates of a nominal entry. The transformation of nominal documents into bearer ones was carried out by the State Commission for the Repayment of Debts. To encourage the development of registered papers, when converting bearer papers into registered papers, all expenses were charged to the state account, and in case of reverse conversion, to the account of the owner of the papers. Shares under Russian law were registered papers. However, in the charters of individual joint-stock companies, exceptions were made in favor of bearer papers, which at the beginning of the 20th century. became the most common (see table 1.1.). And since the charter of each joint-stock company in Russia was a legislative act, its provisions took precedence over the provisions of general legislation. Table 1.1. - Data on types of securities in the Russian Federation

Number of companies
General
Those who issued:
registered papers
bearer

Thus, bearer papers prevailed, with a free choice between papers of one type and another. In some cases, the statutes provided, for example, that in the first ten years of the existence of the company, the shares must be registered, and after this period - both registered and bearer; in another case, two-thirds of all shares had to be registered, and the rest - bearer; bearer shares accounted for 25% of all shares. Registered shares prevailed in shipping companies. Special meaning when placing securities, there was a question about the par value of shares. The practice of approving the charters of Russian corporations testified that the government was unwilling to allow the issue of small denomination shares. For a long time the minimum share price was 100 rubles. In joint-stock companies, approved in the last years before the revolution, denominations of 100, 250 and 1000 rubles prevailed. Shares with a par value of 50 rubles. were the exception. The shares of the first issue of the Society for the improvement of premises for workers in St. Petersburg with a face value of 25 rubles looked like a perfect rarity on the St. Petersburg Official Stock Exchange. The high denominations of Russian shares contrasted sharply with those operated by the markets of other European countries. In France, for example, denominations from 2 to 10, 20, 30, 50, 100 francs were often encountered. fr. Therefore, British entrepreneurs, for example, when approving an enterprise in Russia, preferred to issue shares in a Russian enterprise in London, where they could be issued with a par value of 10 rubles. or even 50 kopecks. It is useful to recall the system of taxation of transactions with securities. According to the law of 1885, the collection from transactions with securities was 5% of the income brought by capital. This law applied to interest-bearing papers, current account deposits and other interest-bearing deposits. Loans could be exempted from the tax, upon issuance of which this was specially stipulated. As a rule, loans that were entirely or in large part concluded abroad were exempted from the collection. Such a condition was often put forward by foreign intermediaries who facilitated the conclusion of the loan. Of the 73 government loans recorded in the State Debt Book by January 1, 1913, only 19 loans were covered by the law on a 5% tax on income from money capital. In this situation, the cities that issued their debt obligations were forced to pay the fee, which, of course, led to an increase in the cost of city loans. Deposits made to state savings banks, small credit institutions or, for example, to the Kustarny Bank of the Perm Provincial Zemstvo were also exempted from the collection. Shares and shares of commercial and industrial enterprises were exempt from tax on the ground that these papers were taxed in a different form. Such a tax applied to enterprises that were obliged to publish their accounts, and was divided into a tax on capital and a tax (interest fee) on profits. Capital tax was paid in the amount of 15 kopecks. from every 100 rubles. fixed capital of the enterprise, and the capital is less than 100 rubles. was not taken into account. In 1899, a decision was made to exempt from the 5% collection of bonds of foreign companies (operating in Russia), which were placed on financial markets in European countries, did not have ruble parity and were not allowed to be traded on Russian stock exchanges. The function of the emission tax in Russia was performed by the Stamp Duty, which was paid by companies for the right to issue papers. It was 0.5% of the face value of these securities. There were no special exchange taxes in Russia, only brokerage notes were subject to stamp duty. And, for example, in France, transactions with securities were subject to five types of taxes (in particular, emission, turnover and income from transactions). The formation of the securities market of the Russian Empire took place against the backdrop of rapid economic growth, an increase in national income, in the absence of inflation and with the active participation of foreign capital. This explains the rather rapid formation of a modern infrastructure for that time and the expansion of the circle of investors. The presence of the gold standard and, accordingly, the absence of restrictions on the movement of capital in the leading world powers determined the international nature of financial markets. Main problem Russian market both then and today - the absence of a mass investor (primarily due to the low standard of living of the majority of the population). Attracting foreign capital to the Russian market has become one of the priorities Russian government. The need to solve it became most urgent in the 90s of the nineteenth century. - the period of modernization of the Russian economy. In what Russian securities was foreign capital invested? Mainly in government bonds and government-guaranteed shares and bonds of railway companies. They accounted for about a third of all investments in Russian securities. Of these, 70% was invested in public funds. More than half of all investments and guaranteed railway values ​​were foreign capital. However specific gravity the latter decreased due to the purchase of a number of railways by the treasury. This was one of the reasons for the growth of investments in joint-stock companies in the 90s of the nineteenth century. In an effort to stimulate economic growth, the government lowered the returns on its funds, thereby facilitating their spillover into the private sector. In turn, joint-stock companies demonstrated tremendous success in the 90s, providing shareholders with high dividends. Approximately half of the increase in investment in joint-stock companies was distributed between Russian joint-stock companies and foreign companies. If in 1893 the share of foreign capital in this sector was 23%, then in 1900 it was already 35%. Thus, by the beginning of 1900, about a third of the functioning in the Russian national economy share capital were foreign investment. The industrial decline that began at the turn of the century meant that from 1900 to 1908, four-fifths of the increase in foreign investment was absorbed by state funds, and only the remainder was taken up by joint-stock enterprise. As you can see, during periods of market instability, investments (especially foreign ones) prefer to "settle in harbors" public funds. In 1908, the share of foreign investments amounted to 40% of all investments in joint-stock companies operating on the Russian market. However, now most of capital was invested in operating companies with a Russian charter. A large share of foreign investment was noted in the coal and metallurgical industries, and a small share in the banking sector. Recently, the question of the participation of modern Russian banks in the financing and management of enterprises has been actively discussed. In this regard, it is useful to refer to the experience of the participation of the banking sector pre-revolutionary Russia in this process. Russian commercial banks have played an important role in the formation and promotion of securities on the Western financial market. This allowed banks to establish contacts and establish cooperation with foreign banks. The experience of issuing activities, as well as the profit received, contributed to the subsequent transition to financing industry with bank capital. The rate of securities and the reputation of Russian funds on the stock exchanges of that time (as, indeed, now) was largely determined by the political situation (apart from the industrial and financial crisis). Revolution 1905 - 1907 gave rise to distrust of Western investors in the prospects for the development of the political and economic situation in the country. The Russian government had to set in motion various economic and political mechanisms in order to influence the rates of Russian securities quoted on the Western market. This was especially noticeable during the period when the spiral of the first revolution (1905-1907) was unwinding in Russia and the uncertain prospects of political freedom first loomed over the state. Rates of Russian securities abroad, especially in the Paris market, began to decline sharply. Since the end of May 1906, the securities of the loan placed in April suffered the greatest fall. From the issue price of 88% of the nominal value, they fell first to 75%, then to 70%, and after the dissolution of the First State Duma, to 68%. The financial groups that issued the loan began to demand from the Russian government more funding needed to maintain the course. After the first week after the dissolution of the Duma, there was a lull, and the panic in the foreign money markets subsided. Holders of Russian funds have stopped their massive release to the market. Despite the stabilization of the situation in Russia, the Paris Stock Exchange remained "weak" in relation to Russian funds. Then a syndicate of financial organizations that placed loans on the stock market turned to the government with a request to finance the purchase of securities from "weak" holders. Thus, it was supposed to support weakening rates. V. N. Kokovtsev, who at that time was the Minister of Finance, suggested that the Paris bankers open a joint account between the general group in Paris and the Russian State Bank, credit certain capital to it (half with the syndicate) and conduct an operation to support the exchange rate of securities by joint forces, distributing profits and losses in proportion to the contributed capital. However, the Parisian banks did not agree with this proposal, and the government decided to carry out the action on its own. 5 million rubles were allocated for its implementation. Funds were spent in small amounts so as not to cause an excessive rise in rates. The operation was carried out against the backdrop of the stabilization of the internal political situation and the removal of radical parties from political life. As a result, the purchase of securities, even for a small amount, was enough to radically change the situation. The exchange public, relying on the underestimation of Russian values, began to actively buy them up. The government had to maneuver and again sell the acquired paper. I must say that the government made good money on this operation. So the 5% rent of 1906 was bought by the State Bank at 69-70% of the face value, and after three or four days it was sold at 72-74%. At the same time, the one-time costs of the bank itself did not exceed 1-2 million rubles. The intervention of the State Bank in the exchange rate game stopped only in the first half of 1908, when the rate of the 1906 loan rose to the issue price (87-88% of the nominal), and then crossed this line. Ultimately, the State Bank received 1 million rubles from this operation. net income. Parisian bankers commented on the events in the following way: the winners are not judged, and in a different situation, the State Bank could lose a lot. However, the victory was more predetermined than won. In itself, the inclusion of the state in the exchange game can affect the exchange rate in the stock market, especially if the state pursues a definite and directed economic policy. When trying to answer the question why our securities market today is experiencing difficulties in funds, we should not forget that after the 1917 revolution, foreign investors lost huge amounts of money overnight. These were the largest enterprises built and equipped at the expense of citizens of other states. At the time, skepticism about Russia's political future was overcome, although the pessimists were ultimately proven right. Today, when history repeats itself, things are much more complicated. One thing is absolutely clear - it is unlikely that foreign investors will be able to be persuaded to invest heavily in Russian funds a second time; in the West historical memory much stronger than in Russia. The formation and development of the securities market of the Russian Federation can be divided into several stages: The first - 1991-1992. The second - 1992-1994. Third - 1994 - Q4 1995 Fourth - 1996 - August 17, 1998 Fifth - August 17, 1998 - present. Until August 17, 1998, the securities market, despite the shortcomings, had positive trends in its development. After the ill-conceived decisions of August 17, he entered a new phase of his development, which, in our opinion, will be quite complex and uncertain. The first stage (1991 - 1992) 1991 was the first year of intensive creation of joint-stock companies, issue of securities, activation of market participants. This process became possible due to the development of corporate legislation. However, the forecasts available at the beginning of 1991, predicting an avalanche-like growth in the supply of corporate securities and their intensive resale with the participation of institutions specializing in securities transactions, did not materialize. This is due to the unpreparedness of market participants, the undeveloped procedure for transactions with securities, the lack of a mechanism for monitoring the reporting of joint-stock companies. Operations with securities on the exchange and over-the-counter markets were essentially reduced to their initial placement (which is completely unusual for stock exchanges), and the stocks of the stock exchanges themselves dominated on the stock exchanges. The over-the-counter market is wider in terms of offer and conditions for the execution of transactions. There was no secondary market at all, separate transactions for the purchase and sale of shares were concluded. As a positive, the emergence of computer networks should be noted. The first group of shares traded on this market includes shares of joint-stock banks. In the wake of significant inflation, their exchange rate was constantly rising. The second group of shares - shares of manufacturing companies. The total number of registered joint-stock companies is in the tens of thousands and continues to grow steadily. According to Russian legislation, this form of ownership is the most preferable and corresponds to world practice. The third group - the most active in offering shares - shares of stock exchanges. By that time, the number of exchanges had reached 800. Fluctuations in the exchange rate for these shares were quite significant, and the shares themselves were the most speculative. The fourth group of shares - shares investment companies. They appeared at the very end of 1991. Separately, it is necessary to say about the issue of government securities - bonds. An example of a 5% loan to Russia in 1990. showed that the popularity of long-term bonds is extremely low due to high inflation. This period is also characterized by the beginning of legislative regulation of the securities market: the question is raised about the reliability of securities, determining their rating, etc. First stock exchanges- Moscow Central Stock Exchange, Siberian and St. Petersburg - began their activities in the third quarter of 1991. In addition, stable operations were carried out by the stock departments of the RTSB, the St. Petersburg Commodity and Stock Exchange, and others. At the initial stage of the development of the domestic stock market, shares of commodity exchanges represented the main sector of the market. This was caused, first of all, by the shortage of goods in the country at that time, and most of the information regarding supply and demand for various groups of goods flowed to these exchanges, where highly profitable transactions were concluded for them. The second stage (1992 - 1994) is characterized by the release into circulation of a "nominal privatization check" - a voucher. The issuance of the voucher has made a significant contribution to the development of the securities market. An attempt was made, on the one hand, to involve a significant part of the population in the class of owners (shareholders), and, on the other hand, to carry out accelerated mass privatization in order to partially relieve the burden on the state budget due to the emergence of a large number of joint-stock companies that are in competition between they would have to improve the quality of their products and saturate the market with the necessary goods. The stock market received a highly liquid financial instrument. One of the important positive features of the voucher is its investment attractiveness, i.e. in the case of a purchase of a voucher for the purpose of further resale at a higher price and in the event of a subsequent significant price reduction, the voucher could be used for its intended purpose - to invest in an enterprise. These highly profitable operations had a negligible risk of recorded direct loss. Investment and financial companies have actively earned financial brokers, stock departments of banks. Voucher investment funds began to appear, which attracted vouchers from the population, accumulated them and participated in voucher auctions for the privatization of enterprises. True, most of these organizations have sunk into oblivion. Until now, we never cease to wonder how many leaders could bring them to bankruptcy without using the unique chance that falls once in a lifetime (accumulation of a large number of investors with the ensuing opportunities)? The government set itself the following goals: - Creation of a class of shareholders; - acquisition of a more efficient owner, which would subsequently allow to relieve the burden on the state budget; - accelerated development of the structure of the securities market; - increase in budget revenues, etc. Illiterate actions have undermined confidence in the stock market. Backlog legislative framework from the real development of the securities market led to the collapse of many financial pyramids that existed at that time. Millions of savers lost their savings. To a large extent, the state is to blame for this. The set goals were not achieved. A significant number of shareholders appeared in the country, but they were generally passive participants in the securities market. A large number of enterprises were corporatized, but only no more than 10% of enterprises received an effective owner. During privatization, the state lost more than it gained. This task was solved by no more than 40%. The securities market received shares in newly privatized enterprises, although a significant number of shares were practically illiquid. There is an alternative for investors. This task was solved by no more than 70%. The second stage of the development of the securities market ended with the collapse of financial pyramids. All shares went down in price, and shareholders were completely disappointed in the Russian stock market. Conclusion: the main cause of the crisis was the imperfection of Russian legislation and the reassessment of the pace of development of this market. It was also proved that the securities market, like any market in a market economy, needs to be regulated and controlled by government agencies, and before harvesting the “harvest” from the sale of state blocks of shares, the placement of government debt securities, tax collections, etc. ., first you need to "look after" him. The third stage (1994 - 4 quarter 1995) This stage can be called depressive. The recent collapse of financial pyramids and the approaching parliamentary elections have led to an even stronger drop in the shares of privatized enterprises. The fourth stage (1996 - August 17, 1998) It is characterized by two important events - the issuance of state savings loan bonds (OGSS) and the introduction of a currency corridor. Despite the fact that the state already had government debt securities, which were represented by non-cash instruments (GKO, OFZ), the issue of OGSS made it possible to reorient the population from buying cash US dollars to buying this instrument, thereby restoring confidence in the securities market as a whole. The introduction of the currency corridor also favorably affected the development of the securities market in the Russian Federation. Investors began to make significant profits in US dollars by investing financial resources in the purchase of risk-free government securities. Income from these financial instruments significantly exceeded the rate of ruble devaluation. This was the first mistake, since the yield on government securities should be minimal and, in our opinion, be at the level of no more than 15-20% per annum in hard currency. In fact, the yield sometimes exceeded 50% per annum, which introduced an imbalance in the fundamental qualities of government securities and which, in turn, called into question the full fulfillment of obligations on the domestic debt of the Russian Federation. Introducing the currency corridor, the government set itself the following tasks: - to reduce the currency risk when investing, to a greater extent, direct investments in various sectors of the economy; - to cover the budget deficit through the additional placement of government high-yielding debt obligations; - reduce the yield on risk-free financial instruments with further reorientation of investments in the real sector of the economy. The state has partially reached desired result . The yield on government securities decreased to 30% per annum in rubles. There was a slight reorientation of the direction of capital flow, and part of the investment was directed to the corporate stock market, but, unfortunately, as portfolio investment. The number of shares increased by more than 5-15 times. The backlog of the legal framework in the field of direct investment and the lack of a law to protect the rights of investors, especially foreign ones, did not allow the reorientation of investments from portfolio to direct. A strategic mistake has been made in the area of ​​domestic debt management. It was necessary to switch to longer debt instruments with a maturity of more than 5 years. The market was ready for this transition. Also, with a significant increase in the price of corporate shares, it was necessary to sell non-controlling stakes in state-owned enterprises to strategic investors. The Asian crisis and a significant drop in prices for energy resources, the main source of foreign exchange earnings, had a negative impact on the securities market. (We hope that the officials made the right conclusion about the role of the cost of raw materials in the world markets, and realized that today the economic future of Russia, unfortunately, depends on the price of oil). Due to this, the country's balance of payments deteriorated sharply, which, in turn, caused investors to doubt the reliability of the currency corridor and the execution of forward contracts by Russian banks for the supply of US dollars. Uncertainty appeared in the final yield in hard currency of many financial instruments. The mass sale of GKOs began, the transfer of rubles into dollars and their export outside Russia. Another mistake was made: instead of stopping the placement of new issues of GKOs at high yields, they continued to issue new issues of these securities (the government tried to keep investors with high yields). The yield on placement reached 70% per annum in US dollars if the currency corridor was maintained, which further frightened investors. It was necessary to urgently switch from internal debt to external debt, which was longer (to borrow dollars on the external market and extinguish internal obligations, which would lead to a drop in profitability and strengthen investor confidence). Some time later, another technical error was made: foreign investors were offered to switch from short ruble GKOs to longer currency ones. Strategically, it was the right decision, but tactically executed incorrectly. Many investors began to doubt the fulfillment of the state's internal obligations to redeem debt securities. Getting loans from the IMF helped to defuse the situation, though not for long. And here again another strategic mistake was made. Instead of using these funds to pay off GKOs or buy them on the market with a yield of more than 150% per annum, the Bank of Russia began to keep the ruble from falling by spending short term several billion US dollars. Result: refusal to fulfill obligations on domestic debt and a significant devaluation of the ruble. What should have been done? When receiving a loan from the IMF, it was necessary to devalue the ruble (in our opinion, the exchange rate of the ruble against the dollar would be set at the level of 9-15 rubles per dollar, and it would suit the main exporters) and, without fail, fulfill obligations on domestic debt by selling several billion dollars of foreign exchange reserves and even with a partial issue of money. Unfortunately, this is not the most the best option, but, in our deep conviction, it would be much more effective than the decision made and with less negative results. In the event that the state took this path, then, despite many negative consequences, in the future investors (Russian) would begin to hedge currency risks without fail. This would give a big impetus to the development of the necessary financial institutions (futures exchanges), the emergence of new financial instruments - options, etc. An important economic axiom would be preserved: domestic obligations in the national currency are considered feasible under any circumstances, since the state has the right to print the necessary amount of money to repay it. The stage ended on August 17, 1998, when Russia declared default on domestic debts. Consequences: The Russian securities market fell into a deep depression, and distrust of Russian securities increased many times over. When a default was announced on Russia's internal obligations, the most conservative part of investors, who did not want to take risks at all, lost money. And it is for this category of citizens that there are government debt securities and deposits in large and reliable banks at a minimum percentage of income.

Candidates of Economic Sciences M. SAFRONCHUK and I. STRELETS.

The securities market can be called a unique world, where the concept of "speculation" has not a negative, but a very positive sound. Stocks and bonds, banks and stock exchanges, exchange rates and financial crashes - more and more they enter our lives and affect it. Even without playing on the stock exchange, many Russians have recently become holders of securities. The journal has repeatedly written about these new financial realities (see "Science and Life" No. 9, 11, 1994, No. 2, 1995). We turn to this topic again precisely because the number of people involved in the securities market is constantly growing. And among them there are many who, on their own and even with the help of special literature, find it difficult to deal with economic wisdom. This article is devoted to the basics of the securities market mechanism and the peculiarities of our domestic market.

Trading floor of the Russian stock exchange.

Yield of government short-term bonds (GKO) in July 1998.

What do economists call a market? Certainly not a marketplace on a sunny day or a supermarket. The concept of the market is abstract and not associated with a specific location. This is the interaction of supply and demand for goods and services, as a result of which their market price is formed. However, for economists, the concept of "goods" has a broader meaning. The object of supply and demand can be not only industrial, consumer goods and services, but also the money supply (then we are talking about the money market), capital (capital market) and its element - securities.

The securities market is a huge and in many ways unique economic empire. The goods here are not transferred from hand to hand, it cannot be felt. Buying and selling, say, a block of shares can be made many times during the day, but will not be accompanied by a physical movement of real items. The product lives only on paper and the transfer from the seller to the buyer is carried out through accounting, that is, rewriting - something like a mutual offset.

Exchange

Many people remember (especially thanks to foreign films) the stories of fantastic enrichments that occur on the stock exchange. And it is very curious to look here, and even better - to take part in the exchange game.

But it was not there! "Who are you, gentlemen? Ordinary citizens or small legal entities? - they will meet you at the entrance. - Sorry, but you are not on the exchange list."

To gain access to the stock exchange and put your shares on the stock exchange, you need to be a very large, stable corporation with an impeccable reputation. Shares of second-rate companies are not allowed to be quoted (purchased and sold). There is the concept of listing - a list of securities of those companies whose financial position has been verified by stock exchange experts.

Each exchange has its own listing criteria, but they are all very serious and not easy to meet. For example, on the New York Stock Exchange (NYSE - New York Stock Exchange) the easiest requirement is to pay an entry fee of $29,350. Then you need to make payments from each share, as well as annually pay commissions to the administration of the exchange in the amount of up to 50-60 thousand dollars. And here are the other requirements: attract at least two thousand investors who would agree to buy from your company 100 or more shares each, issue 1 million shares, the holders of which will be ordinary shareholders, not the company. However, within two recent years you must achieve a profit of $7 million per year or more, and the value of the company's assets must be at least $18 million.

Such high requirements involuntarily raise the question: is it possible to do without the stock exchange? Can the company sell its shares elsewhere? Certainly. For this, there is an over-the-counter turnover, where securities are also sold and bought.

Does this have anything to do with the "black" market?

Far from it. The modern over-the-counter market is an extensive network of large and reputable commercial banks, investment companies and funds, united by a single computer system and electronic communication. However, in order to obtain the right to issue (release) securities, it is necessary to become a fairly large company.

Let's say you set up a corporation or an industrial group. You are respected, you are considered. But at the investment bank you should apply to, you will first of all be introduced to the list of requirements for reputable clients. This bank is indispensable: it is the investment bank that serves as the place for the initial placement of shares and bonds. And you will have to unquestioningly agree with all his requirements.

They will send a lawyer who will shovel all the contracts, patents, licenses, even get to the statutory documents - you have to accept. An auditor will come and begin to verify your financial statements- it's nothing you can do. Information about all activities of the company and its results will be required - it must be provided.

Based on the comprehensive information contained in a huge number of documents, the investment bank makes a conclusion about the competence of the company's management, about the financial position of the company itself and its partners, determines the competitiveness of the company, the prospects for its development and the industry as a whole. An investment bank has the right to be so meticulous, since it is he who assumes the risks associated with the further placement of the securities he has acquired among other banks, funds, companies.

What are securities? These are documents confirming the right of its owners to receive expected future income under certain conditions. Among the variety of types of securities, the most common and popular are stocks and bonds. When deciding on the issue (release) of securities, the corporation chooses those types that will best solve the tasks. And, accordingly, acquires certain rights and obligations. Let's consider them in relation to stocks and bonds, and also talk about issuers (subjects that issue securities) and investors (subjects that buy securities).

Promotion

This is a document certifying the contribution of a share (share) in the capital of a joint-stock company. It gives the right to receive part of the profits of a joint-stock company in the form of a so-called dividend.

The first joint-stock companies arose in early XVII century: East India Company in England (1600), East India Company in Holland (1602). At present, in developed countries, the joint-stock form of enterprises is the leading one, and therefore the share has long become an integral attribute of the modern securities market.

We have already talked about how many difficult problems you need to solve in order to become an issuer. Becoming an investor is much easier: just buy a share of the joint-stock company you are interested in. But the investor does not have the right to demand that the joint-stock company return the amount paid for the shares. The only way to get money is to sell the share to another legal entity or individual in the secondary securities market.

There are various promotions. According to the nature of the order, they are divided into registered and bearer shares. All rights under registered shares can only be exercised by a specifically named person. For example, if your name is written on the form, then no one else can receive dividends - only yourself.

If we are talking about bearer shares, then the person who presented them has the rights to these shares. Today, the bulk of shares are bearer shares.

Shares are also divided into ordinary and preferred shares. An ordinary share gives the right to take part in the meeting of shareholders. Owners of preferred shares do not participate in voting at shareholders' meetings, but have certain privileges in relation to the dividend (fixed size, priority right to receive). The owners of ordinary shares receive dividends depending on the profit of the joint-stock company. It turns out that the privileges in the area of ​​the dividend are, as it were, exchanged for rights in the area of ​​control. Most of the shares issued by corporations are classified as common stock.

When we buy securities, then, first of all, we are interested in their yield and market price, that is, the share price. But isn't the price of the share indicated on it, isn't that what the par value of the share says? The fact is that the nominal value is a convention. It only matters in the initial offering of a share in the primary market, and the investor's share is exactly equal to par. However, as we already know, the investor cannot claim his share back, he can only resell the share. But at what price - it already depends on the current stock price.

The share price depends on supply and demand, which are determined by many reasons. Since the rate is not predetermined, there is a possibility of speculation in the securities market. Those market participants who expect the rate to rise will buy shares, hoping to resell them at a higher price in the future. Players to increase the rate are called "bulls". Those who expect the price to fall will sell shares. They play for a fall in the exchange rate, and in exchange practice they are called "bears". (See "Science and Life" No. 9, 1991 for more details.) Who will be in a winning position, the future will show. The share price is subject to frequent fluctuations, and in the exchange game the principle is implemented: today - you, and tomorrow - me.

A vivid historical example of a short run, which made it possible to make a fortune of 50-60 million pounds, is associated with the name of Nathan Rothschild. During the Battle of Waterloo in 1815, he spread a false rumor on the London Stock Exchange about the defeat of England, and her government securities began to sell off wildly. Rothschild himself hurriedly bought depreciated "paper" at a symbolic price. However, the official announcement of the victory was not long in coming. The rate of securities rose sharply, and ... the insidious plan was brilliantly realized.

Bond

Historically, bonds arose before shares: even the Athenian state on the eve of the Peloponnesian War (V century BC) placed a loan in the amount of 10 thousand talents. A bond is a security that gives the right to receive a guaranteed income.

Unlike a share, a bond does not give the right to vote when making decisions at shareholders' meetings. The paid income is strictly fixed and does not depend on changes in the issuer's profit.

Bonds are term papers, that is, their value is repaid over time. Release them on different term, however, it can be said that these periods tend to become shorter and shorter. In the era of the heyday of the classical type of bonds in Europe, they were issued for an incredible period, according to our today's ideas: 100-150 years, and at an incredible percentage, according to today's ideas: 1.5-2% per year. At that time, they were reputed to be a model of reliability: having once invested in a bond, one could safely cut coupons for a number of years. The bond was printed with a special coupon sheet, the number of which was equal to the number of interest payments in the period until the bond was redeemed. Thus, by taking the scissors and cutting off the coupon, the owner of the bond claimed his right to the yield on the bond. This is where the expression "cut coupons" came from.

Currently, the terms for which bonds are issued have been significantly reduced. The main reason is inflation, which devalues ​​the money invested in the bond. Distinguish between short-term, medium-term and long-term bonds. According to Russian legislation, short-term bonds can be issued for up to 1 year, medium-term - up to 5 years, long-term - up to 30 years.

Bonds are issued by private and state issuers. It is believed that the state cannot go bankrupt, so government bonds are the standard of reliability. (This is in theory. About Russian realities - a little lower.) But the lower the risk, the less reason to pay a high return on a security. The general rule of functioning of the securities market says: the higher the yield, the lower the reliability, and vice versa.

In Russia, government short-term bonds - GKOs - are most widely used on the financial market.

A bond is a debt obligation of the issuer. The buyer of the bond provides credit to the issuer. Therefore, when purchasing bonds from a joint-stock company, we do not become co-owners of this company, as when buying a share, but its creditors.

Choosing securities

The Russian securities market is still in the process of formation. This is explained simply: the securities market is a reflection of the state of the real market for goods and services.

Russian investors remain very cautious when making decisions to buy stocks and bonds, which is quite understandable given the negative experience associated with instability and inflationary trends in our economy. Issuers of securities on the domestic market also often behave rather constrainedly.

Among joint-stock companies in our country, closed-type joint-stock companies prevail: they do not issue their shares on the market, but distribute them within the company, unlike open joint-stock companies, whose securities are freely sold and bought on the secondary securities market.

Government bonds are considered the most reliable today. Among them are GKO, OFZ (federal loan bonds), OGSZ (government savings loan bonds).

World experience says that government securities are almost risk-free (minimal risk), but their profitability is also low. In Russia, in a certain period, the opposite and therefore unique situation developed: GKOs were both reliable securities and highly profitable - 30% per annum for GKOs, while 10% per annum for deposits in Sberbank. The reasons for this phenomenon lie in the field of politics, but this is a topic for a separate discussion. Let us only note that one thing with the other - economics and politics - is closely connected. The national securities markets of different countries also influence each other. Thus, the global financial crisis at the end of 1997 had an adverse effect on the Russian market.

At the beginning of this year, OFZs and currency bonds of the Ministry of Finance were considered more promising. According to experts, the situation on this market is in favor of bonds for a period of six months: compared to annual and three-year bonds, they have a small risk, and price fluctuations over this period allow you to get a higher yield.

Experts believe that over the past year, the municipal bond market has noticeably "grown up", that is, it has become more civilized. First of all, these are bonds of St. Petersburg, Moscow and Orenburg, which are also considered to be very reliable.

In the second half of last year, so-called "rural" bonds were issued (the traditional registration of debt, in this case - agricultural producers to the Ministry of Finance on a loan for 1996). There are still few of these bonds, which may hinder the growth of their liquidity (that is, convertibility, mobility), despite the expected prospects of these securities. Emphasize expected.

The most risky investments in the Russian market are shares. But even in this most speculative segment of the market, glimpses of improvement appeared: the degree of liquidity of shares increased and their riskiness somewhat decreased. Not the last role in this was played by Russia's entry into the Paris and London clubs of creditors, which attracts foreign investors to the domestic market.

So, when choosing securities that you wish to purchase on the Russian market, you should first of all focus not only on profitability indicators, but also on the degree of reliability of the issuer and the level of liquidity of this security. The list of the most reliable banks and companies, indicators of profitability and liquidity of public and private securities, as well as analytical reviews are systematically published in such economic journals as "Money" and "Securities Market". Here you can always see the rating of consulting firms, explaining, in particular, which securities to buy, which to sell, and which are better to hold for now, and other issues that concern the investor. detailed information and recommendations of professionals greatly facilitate both experienced and potential investors the difficult decision-making process in the securities market.

(Ending follows.)

Details for the curious

ON THE YIELD OF SHARES AND BONDS

When making forecasts regarding changes in the share price, one can to some extent focus on the dividend paid on the shares of a given joint-stock company. The dividend rate is the rate of return on a share, it is the ratio of the amount of the dividend to the market price of the share. However, the return on a share depends on more than just the size of the dividend, since low dividends can be paid during a company's growth period when large investments are made. Therefore, despite low dividends, the share price can rise significantly. Every time you make a decision to buy or sell a stock, you need to take into account all this variety of factors.

Let's talk a little more about the yield of bonds, since they are the most popular in Russia today. If the par value of a share does not matter when it is bought or sold on the secondary market (a share is a perpetual paper), then in relation to a bond it is fundamentally important to take into account the face value and maturity. The fact is that the regular fixed income on a bond for a certain time is a percentage of its face value indicated on the bonds. This also applies to coupon bonds. Suppose the face value of the bond is 1000 rubles, the maturity is 10 years, the annual coupon income is 100 rubles. Therefore, the coupon yield is 10 percent.

However, there are also zero-coupon bonds, such as GKOs, which are sold at a price below par. How in this case to determine their profitability in annual terms? You can use the short-term bond yield formula:

(R 1 - R 2): R 2 x 365: t,

Where R 1 - price at face value, R 2 - sale price, 365 - number of days in a year, t- bond term to maturity (number of days). Suppose a bond is issued for a period of 3 months (90 days) with a face value of 100 rubles. and is sold at a price below face value - for 95 rubles.

Substituting the data into the formula, we get a yield equal to 0.2, or 20% per annum.

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Introduction

The securities market, the stock market is an integral part of the financial market in which securities are traded. The history of the development of the securities market dates back several centuries and began with the creation of the government securities market, which appeared in the 15th-16th centuries. The need for the appearance of such securities was associated with the high costs of the state, which exceeded revenues. To attract additional Money the state issued securities that were placed on the international market, and then on the domestic market. The very first corporate securities appeared in the 17th century, but they were widely developed only in mid-nineteenth V.

1 . Isthorium stock market developmentin Russia

Considering the development of the securities market in a historical aspect, several periods can be distinguished. First, pre-revolutionary (until 1917), then Soviet period(from the NEP and subsequent years) and, finally, the modern stage, which began with the privatization of state property.

All these stages have their own specifics associated with the conditions of their formation, there are some common features, which allow you to better understand and evaluate the current processes of the stock market development.

The securities market, which operated in Russian Empire played an important role in the economic life of the country. It was directly connected with the state of industry, agriculture, transport, and in general with the political, economic and financial situation in Russia.

Its emergence and formation indicated that Russia was smoothly entering the circle of developed industrial powers, rising to a new level of socio-economic development, which required the accumulation of monetary savings of industrialists, merchants, banks, ordinary citizens and the direction of these funds for productive consumption.

The historical starting point for the emergence of the Russian stock market can be considered 1769, when the first issue of the Russian State Loan was placed in Amsterdam.

Initially, the state's needs for the necessary financial resources were met for the most part through the distribution of large state loans in foreign markets. Actually, government debt securities appeared on the Russian market much later, only forty years later, in 1809.

The successful placement of the first loans marked the beginning of the regular use of this source of financing for the state treasury.

In the 30s, shares and bonds of private companies appeared on the stock market, the issue and circulation of which were regulated by the Law on Industrial Societies adopted in 1836. However, their turnover compared to government interest-bearing papers and similar papers on the Western stock market was insignificant, which, in general, corresponded to a certain level of development of capitalism in Russia at that time.

The reforms of the third quarter of the last century created the prerequisites for the appearance of debt obligations of local authorities on the stock market. Their appearance was dictated by an acute shortage of funds for the development of local cultural and economic life.

Government papers were issued by the government both registered and bearer. Since 1906, the owner of bearer bonds of state loans had the opportunity to replace them with registered bonds or so-called certificates of registered records.

The conversion of bearer securities into registered securities and vice versa was carried out by the State Debt Repayment Commission. To encourage the development of registered papers, when converting bearer papers into registered papers, all expenses were charged to the state account, and in the case of the reverse transformation, to the account of the owner of the paper.

Securities were traded on commodity exchanges and through the State Bank of Russia. The sale of government bonds was carried out mainly through the State Bank with the active mediation of commercial banks. Initially, transactions with securities on the exchanges were carried out in accordance with the rules of exchange trading, specific exchanges.

According to the rules, the exchange public of the stock department consisted of:

* full members;

* regular visitors;

In addition, the fund department was visited by representatives of the Ministry of Finance, both to exercise supervision and to carry out transactions with funds and currency at the expense of the state bank and the state treasury.

Despite the fact that this rule was abolished by law in 1893, futures trading on Russian stock exchanges has not become widespread.

The international political crisis in 1914, which led to the outbreak of the First World War, caused an unprecedented panic on the European stock exchanges. Within a few days after the declaration of war, Russian stock exchanges stopped trading in securities. Operations with securities turned out to be disorganized.

From the end of 1914, private exchange meetings began to be held in St. Petersburg, as well as in Moscow and Kyiv, to carry out transactions with securities. They began to take on a mass character in St. Petersburg in the spring and summer of 1915 in the premises of the stock exchange and some large joint-stock banks. At the end of 1916, a certain revival began in the stock market, which was unexpected for the government.

After the revolution, the securities market actually ceased to exist.

As early as December 23, 1917, by a decree of the Soviet government, all transactions with securities were banned and at the beginning of 1918 state loans were annulled.

In the first half of the 1990s, Russia began the transition to a market organization of the economy.

The privatization of industry and other state property laid the foundation for the formation of the Russian stock market.

The securities market complements the bank credit system and interacts with it. By issuing securities, an enterprise can receive funds for a long period of time: for several decades (bonds) or in general for perpetual use (shares).

The securities market provides the mechanism by which investments are attracted to the economy. It connects those who attract investments by issuing securities (issuers), those who wish to invest in financing investment projects (investors, owners), and those who operate in the market (professional participants).

2 . Clsecurities market assification

1. Depending on the stage of circulation of the security.

Primary security market- this is a relationship regarding the issuance of a security in circulation.

Secondary market is the circulation of securities between investors.

2. According to the type of securities, this market is divided into relatively independent markets for each individual security: markets for shares, bonds, bills, etc. In turn, the market for an individual security can be subdivided into the market for this security itself and the markets for instruments dependent on it: the market for secondary securities and the market for derivative financial instruments based on term contracts for securities.

3. By type of issuer: the government securities market is the securities market, the issuer of which is the state represented by the relevant state executive authorities. In turn, the government securities market in our country is divided into the federal securities market, the securities market of the constituent entities of the Russian Federation and the municipal securities market. The corporate securities market is the market for securities issued by commercial entities ("corporations").

4. From the point of view of the sectoral division of the economy, the sectoral securities market is a market for all types of securities issued by commercial structures of this industry. For example, the securities market of metallurgical companies or oil companies, etc.

5. In terms of scale, the securities market is divided into the world market and national markets.

6. Depending on the degree of concentration (concentration) of relations between issuers and investors in terms of place, time, processes, etc.

The securities market is divided into: the exchange market is a market that has the legal status of an exchange. The economic basis of the exchange as a market is high degree concentration (concentration) of transactions of the same type (purchase and sale transactions) with securities in a certain place (including in a certain electronic trading system) and for a discrete time interval. The over-the-counter (non-exchange) market is a market characterized by the randomness of the process of concluding purchase and sale transactions with securities in time and space, and in organizational and legal terms, this market is dispersed throughout the country and among participants.

7. From the point of view of the presence of firmly established rules of trade, fixed, up to their approval by the state. An organized market is a market that operates according to the rules binding on all its participants. An unorganized market is a market without rules and without government regulation.

8. Depending on the way transactions are concluded. A public market is a market in which the sale and purchase of securities is carried out publicly, i.e. usually in the presence of professional trading market participants. An electronic (computerized) market is a market in which the process of buying and selling securities is carried out by electronic contact (via electronic networks) between sellers and buyers.

2 . 1 Ughsecurities market functions

The securities market is a market in general and a financial market in particular. Therefore, all its functions can be conditionally divided into general market and specific ones.

General market functions of the securities market:

a commercial. The purpose of any market is to make a profit (net income) or increase the capital invested in the market. Investors in the securities market seek to increase their capital;

evaluative (value, measuring). Any commodity in the market, including a security, receives its own market price;

informational. Information about market events should be identified and communicated to in due course to all its participants;

regulatory. The market operates according to the rules it develops, which its participants are obliged to comply with voluntarily or by virtue of their legislative consolidation.

Functions of the securities market as a financial market:

redistributive. Through financial markets, the redistribution of savings or free cash in general from their simple monetary forms to various forms capital. Buying an income security means that the investor's money has turned into capital;

protective or anti-risk. Financial markets provide their participants with tools to protect capital from certain risks.

The function of the redistribution of capital, or money in general, performed through the issuance and circulation of securities, means the redistribution of funds between industries and areas of activity; between territories and countries; between the population and enterprises, i.e. when citizens' savings take a productive form; between the state and other legal and natural persons, which takes place, for example, in the case of deficit financing state budget on a non-inflationary basis.

The risk redistribution function is the use of securities market instruments (primarily the so-called derivative instruments based on securities) to protect the owners of any assets (commodity, currency, financial) from adverse changes in prices, value or profitability of these assets. This function can also be called the risk protection (insurance) function or, more precisely, the hedging function. However, hedging is not possible unilaterally: if there is someone who wants to hedge against the risk, then there must be another party who considers it possible for himself to take this risk. With the help of the securities market, you can try to shift the risk from your asset to a speculator who wants to take risks. Therefore, the essence of hedging in the securities market will be the redistribution of risks. This function is a relatively new function of the securities market, which appeared in its modern form only in the early 1970s. Thanks to it, the securities market has significantly increased its stability, on the one hand, and its significance, on the other, since the risk redistribution function, based on the same cash redistribution function, sharply accelerates and even simplifies the transfer of free (or released) financial capital .

2.2 Types of securities

Securities existing in modern world practice are divided into two large classes:

1 class - basic securities;

Class 2 - derivative securities.

Principal securities- these are securities, which are based on property rights to any asset, as a rule, to goods, property, various kinds of resources, money, capital, etc.

The main securities are divided into two subgroups: primary and secondary securities.

Primary securities are based on assets that do not include the securities themselves. These are, for example, stocks, bonds, bills, mortgages.

Secondary securities are securities issued on the basis of primary securities; these are securities for the securities themselves: warrants for securities, depositary receipts.

Derivative security- this is a non-documentary form of expression of a property right (obligation) arising in connection with a change in the price of the exchange-traded asset underlying this security. Or a derivative security is a security for any price asset: for the prices of goods (usually, exchange goods: grain, meat, oil, gold, etc.); on the prices of underlying securities (usually, stock indices, bonds); on credit market prices ( interest rates); on the prices of the foreign exchange market (exchange rates).

Derivative securities include: futures contracts (commodity, currency, percentage, index, etc.) and freely tradable options. Under the type of securities we will understand such a set of them, for which all the features inherent in securities are common, the same.

There are classifications of securities and classifications of types of securities. Classification of securities is the division of securities into types according to certain characteristics that are inherent in them. Classifications of types of securities are groupings of securities of the same type; This is the division of types of securities into subspecies. In turn, subspecies can in some cases divide even further. Each lower classification is part of a higher classification. For example, a share is one of the types of securities. But the share can be ordinary and preferred. An ordinary share may be single-voted or multi-voted, with par value or without par value, etc.

A security has a certain set of features. Temporary signs: the period of existence of the security: when it was put into circulation, for what period of time or indefinitely; origin: whether a security originates from its primary basis (commodity, money) or from other securities. Spatial features: form of existence: paper, or, legally speaking, documentary form or paperless, non-documentary form; nationality: domestic or foreign security, i.e. foreign; territorial affiliation: in which region of the country the given security is issued. Market characteristics: the type of asset underlying the security, or its initial basis (commodities, money, total assets of the company, etc.); ownership order: security to bearer or to a specific person (legal, natural); release form: emission, i.е. issued in separate series, within which all securities are exactly the same in their characteristics, or non-issue (individual); form of ownership and type of issuer, i.e. the one who issues securities to the market: the state, corporations, individuals; the nature of negotiability: freely traded on the market or there are restrictions; economic essence in terms of the type of rights that a security provides; risk level: high, low, etc.; availability of income: some income is paid on the security or not; form of investment: money is invested in debt or for the acquisition of property rights. The main types of securities in terms of their economic nature are:

Promotion- a single contribution to the authorized capital of a joint-stock company with the ensuing rights;

Bond- single promissory note to return the invested amount of money after a specified period with or without payment of a certain income;

bill of exchange- a written monetary obligation of the debtor to repay the debt, the form and circulation of which are regulated by special legislation - the bill of exchange law;

bank certificate- a freely circulating certificate of a deposit (savings) deposit in a bank with the obligation of the last payment of this deposit and interest on it after a specified period;

futures contract- a standard exchange contract for the sale and purchase of an exchange-traded asset after a certain period in the future at a price set at the time of the transaction.

Bill of lading- a document (contract) of a standard (international) form for the carriage of goods, certifying its loading, transportation and the right to receive it;

Check- a written instruction of the drawer of the check to the bank to pay the payee of the check the amount of money specified in it;

Option - an agreement in accordance with which one of the parties has the right, but not the obligation, within a certain period of time to sell (buy) from the other party the corresponding asset at the price established at the conclusion of the agreement, with the payment of a certain amount of money for this right, called a premium;

Warrant - a) a document issued by the warehouse and confirming the ownership of the goods in the warehouse; b) a document giving its owner a pre-emptive right to purchase shares or bonds of a company for a certain period of time at a set price;

Term securities- These are securities that have a period of existence established at their issue. Typically, term securities are divided into three subspecies: short-term, with a maturity of up to 1 year; medium-term, having a circulation period of more than 1 year within up to 5-10 years; long-term, having a maturity of up to 20 - 30 years.

perpetual securities- these are securities, the circulation period of which is not regulated by anything, i.e. they exist "forever" or until the moment of redemption, the date of which is not indicated in any way when the security is issued. Classic shape the existence of a security is a paper form in which the security exists in the form of a document. The development of the securities market requires the transition of many types of securities, primarily equity securities, to a non-documentary form of existence.

Investment (capital) securities- securities that are an object for capital investment (stocks, bonds, futures contracts, etc.). Non-investment securities - securities that serve cash settlements in commodity or other markets (bills, checks, bills of lading). The ownership of a security can be nominal or bearer. A bearer security does not fix the name of its owner, and its; circulation is carried out by a simple transfer from one person to another. A registered security contains the name of its owner and, in addition, is registered in a special register. If a registered security is transferred to another person by making an endorsement (endorsement) on it, then it is called an order security.

Government securities- it's usually different kinds bonds. Non-government securities are securities that are issued into circulation by corporations (companies, banks, organizations) and even individuals. The main types of securities are marketable, i.e. can be freely bought and sold on the market. However, in a number of cases, the circulation of securities may be limited, and the security cannot be sold to anyone other than the person who issued it, and then after a specified period. Such securities are non-marketable. From the point of view of profitability, securities are usually profitable, but they can also be non-profitable, when the amount of income to its owner is not specified when issuing a security.

The division of securities into debt and ownership shares basically reflects two possible ways of using funds: either for the acquisition of an asset in the property, or for temporary use. If securities are issued for a limited period with a subsequent return of the invested amounts, then they are debt securities. These are bonds, bank certificates, bills of exchange, etc. Ownership securities give ownership of the relevant assets. These are shares, options, bills of lading, etc.

Equity securities are usually issued in large series, in large quantities, and within each series all securities are completely identical. These are usually stocks and bonds. Non-equity securities are issued individually or in small lots.

security primary share

2.3 Participants in the securities market

Participants in the securities market may be individuals and legal entities that enter into economic relations regarding the transfer of rights to securities.

Professional participants in the securities market - legal entities, including credit institutions that carry out the following types activities:

brokerage;

dealer activity;

securities management activities;

activities to determine mutual obligations (clearing);

depository activity;

activity on maintenance of the register of holders of securities;

activity on the organization of trade in the securities market.

Participants in the securities market can be grouped into five main groups:

issuers - carry out the primary issue of securities into circulation;

investors are always buyers of securities;

stock intermediaries are traders that provide communication between issuers and investors and have state licenses for the relevant intermediary activities (brokerage and dealer services);

brokers are participants in the securities market who carry out operations at the expense of the client (a broker can only be a legal entity).

dealers - participants in the securities market, carry out transactions with securities at their own expense (only a legal entity that is a commercial organization can be a dealer).

infrastructure organizations;

organization of regulation and control.

Issuers- professional participants in the securities market that issue securities into circulation and are liable to their owners. Issuers are usually legal entities.

In practice, issuers are the first sellers of a security, although the issue itself need not be accompanied by a purchase and sale transaction. In the concept of "issuer", the emphasis is not only on the issue of a security, but also on the issuer's acceptance of obligations under it, and hence on obtaining certain rights associated with a security, its owner, buyer. Issuers are usually legal entities, although some types of securities may also be issued by citizens (individuals).

Investors- participants in the securities market, legal entities and individuals who invest their free capital or savings in securities. An investor will simultaneously be an issuer if he carries out his own issue of securities.

An investor will always be an acquirer (buyer) of a security, although not every buyer of it is an investor. An investor can simultaneously be an issuer if he issues his own securities, and an issuer becomes an investor at the same time if he invests his capital in the securities of other issuers. If the issuer can, with a certain degree of conventionality, be called the first seller of his security (in fact, it is often not the issuer who sells it, but a person authorized by him), then the investor, as a rule, will never become the “final” buyer of the security. He constantly acts either as a seller or as a buyer, depending on the situation on the market, prices and profitability of various securities. Therefore, it is wrong to identify issuers only with sellers of securities, and investors - only with their buyers.

Both issuers and investors act simultaneously as sellers and buyers in the securities market. The division of market participants into issuers and investors is made not according to their position regarding the purchase and sale of a security, but in relation to property rights and obligations for each security.

Fund intermediaries- professional participants in the securities market providing communication between issuers and investors and having state licenses for the relevant intermediary activities (brokerage and dealer services).

Brokers- these are fund intermediaries that carry out transactions with securities at the expense of the client in accordance with commission or commission agreements. The broker receives income in the form of a commission.

If a broker provides services for the placement of emissive securities, the broker shall have the right to purchase at his own expense securities not placed within the time period stipulated by the agreement.

Dealers- stock intermediaries that carry out operations with securities at their own expense. Their income is the difference between the sale price and the purchase price of the security.

Management companies- these are fund intermediaries that carry out activities for the trust management of securities and / or funds released from the sale of securities or intended for their acquisition, on behalf of and in the interests of their clients.

Fund intermediaries can only be legal entities, they can be formed in various organizational and legal forms, they must have a state license for the appropriate type of mediation.

Infrastructure organizations the securities market can be conditionally divided into two groups: organizations serving only this market are settlement centers, depositories, registrars; and organizations that serve many markets at once, including the present one, are electronic systems information, newspapers, magazines, legal services, etc.

Organizers of the securities market are organizations that facilitate the conclusion of purchase and sale transactions with securities.

Organizers of the securities market include stock exchanges and over-the-counter market organizers.

Settlement centers- These are banking-type organizations that specialize in maintaining settlement accounts of participants in the organized securities market and making all settlements on transactions with securities.

Registrars maintain registers of holders of registered securities, if their number for a given security exceeds 500;

Depositories provide services for safekeeping of securities and accounting and transfer of ownership of securities from one owner to another.

Organizations for the regulation and control of the securities market are represented by state bodies and organizations of the market participants themselves.

These organizations are represented either by the relevant authorities of the state, or organizations of the market participants themselves, who are granted the right to control and regulate both by the state and by the market professionals themselves.

3. Regulation of the securities market

The Law of the Russian Federation "On the Securities Market" determines that the main state body regulating the securities market in Russia is federal Service on Financial Markets (FFMS), which has the right to give some regulatory functions to organizations of professional participants in the market under consideration by giving them the status of self-regulatory organizations of the Russian securities market.

The purpose of state regulation is to ensure investor confidence in the securities market, which guarantees the latter's performance of their economic functions and regulation of the activities of market participants as relevant organizations, as well as the establishment of rules for their conduct of any operations in the securities market.

The securities market regulation system includes:

Regulators ( government bodies and self-regulatory organizations - voluntary associations of professional participants in securities);

Functions and procedures of regulation (licensing, legislative, registration, supervisory);

Legislative norms in force on the securities market;

Ethical standards of the stock market (rules for doing honest business);

Traditions and customs.

In international practice, there are the following models of regulation of the securities market:

the main regulatory role belongs to the state (this is how the RZB is regulated in France);

a combination of state regulation and the activities of self-regulatory bodies (an example is the RZB in the UK).

The main goal of state regulation of RZB is to support the financial security of the country.

The following functions of the state in the securities market can be distinguished:

1. ideological - development of a concept for the development of the securities market;

2. legislative - the development of laws regulating the "rules of the game" in the market;

3. control - supervision over compliance with legislative and ethical standards, control over the financial condition of investment institutions;

4. informational - creation of a system of information on the state of the securities market and ensuring its openness to investors;

5. protective - the formation of a system to protect investors from losses, the creation of state and mixed investment insurance schemes.

It should also be noted that the state acts on the securities market as the largest issuer (issuing government securities), as well as an investor, owning the securities of enterprises and banks. Represented by the Central Bank, the state is the largest dealer in the government securities market. Finally, it uses the instruments of the securities market to carry out macroeconomic policy.

Conclusion

Summing up the work done, we can highlight a number of key points related to the problem of circulation of securities in the Russian Federation:

1. The securities market with its main elements (over-the-counter and exchange transactions) is a mechanism that is functionally included in the loan capital market. The securities market develops and moves according to its own laws, determined by the specifics of fictitious capital, but is closely linked to the capital market.

2. Today, there are many types and varieties of securities, such as shares, bonds, bills of exchange, certificates of deposit, government obligations, and others that are widely used in Russia.

3. The securities market performs a number of functions, among which the most important are the function of redistribution of capital and the function of insurance of the risk of capital investment. In general, the functioning of capital in the form of securities contributes to the formation of an efficient and rational economy, since it stimulates the mobilization of free monetary resources and their distribution in accordance with market needs.

4. The securities market is subject to regulation both by the state and by independent organizations of professional participants in the securities market.

5. The formation of the securities market in Russia is largely associated with the pace of privatization in the country and the creation of a class of owners.

6. A feature of domestic practice is that the primary securities market still prevails.

most painful and weak side the securities market is its acute susceptibility not only to economic, but also to political shocks, forcing it to work at faster speeds than the capital market and other market mechanisms.

But despite the many problems that the Russian stock market is currently facing, it should be noted that this is a young, dynamic and promising market that is developing on the basis of positive processes taking place in our economy: mass issuance of securities in connection with the privatization of state-owned enterprises , rapid creation of new commercial formations and holding structures raising funds on a shareholder basis, etc. In addition, the securities market plays an important role in the redistribution system financial resources state, as well as necessary for the normal functioning of a market economy. Therefore, the restoration and regulation of the development of the stock market is one of the priorities facing the government.

Listliterature

1. Galanov V.A. The securities market, textbook. Moscow: INFRA-M, 2007, 378 p.

2. Starodubtseva E.B. The securities market, textbook. Moscow: Publishing House "FORUM" - INFRA-M, 2006, 174 p.

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Introduction………………………………………………………………………... 3-4

1. The history of the development of the Russian securities market…………………......5-8 2. The content, structure and essence of the securities market 2.1. Essence and functions of the securities market……………………………. 9-11 2.2. Structure of the securities market………………………………………….. 11-25 2.3. Ways of organizing securities trading………………… 25-27 3. Participants of the securities market 3.1. Dealers, Brokers and Brokers………………………………………………………………28-34 3.2. Banks as the main participant in the securities market…………………..34-35 3.3. Funds and commodity exchanges in the securities market…………………...35-37

4. Stock market – 2013: “near zero” again? ....38-44

Conclusion…………………………………………………………………...45-46

Bibliography…………………………………………………………. 47-49

Applications…………………………………………………………………..50-56

Introduction In a modern market economy, the securities market occupies a special and very important place. The securities market covers both credit relations and co-ownership relations, expressed through the issuance of special documents (securities) that have their own value and can be sold, bought and redeemed. A security is a document that reflects the property rights associated with it, can independently circulate on the market and be the object of purchase and sale and other transactions, serves as a source of regular or one-time income, and acts as a kind of money capital. The securities market is a part of the financial market and, in a developed market economy, performs a number of important macro- and microeconomic functions. It plays the role of a regulator of investment flows, providing a structure for the use of resources for society, and it is through the securities market that the main part of the process of capital flow to industries that provide the highest return on investment is carried out. This topic is quite relevant today, because in a developed market economy, securities and their market play a huge role in mobilizing free cash for the needs of enterprises and the state. The securities market is fairly well covered in the scientific literature. I would especially like to point out following books Kozlovskaya E. A., Kochergin E. I. “Financial securities market”, Makarova S. A. “Securities market and exchange business” and Mirkin Y. M. “Securities and stock market”. The purpose of this course work is: to study the features of the securities market in Russia, its state.

To do this, it is necessary to solve the following tasks:

consider the formation of the securities market, its infrastructure;

study the subjects of the securities market;

consider the current market situation.

1. History of the development of the Russian securities market

In the history of the formation and development of the securities market of Tsarist Russia, three main periods can be distinguished:

I. 1769-50s of the 19th century.

This period is considered the period of emergence and the beginning of the formation of the securities market. It is characterized by the fact that at that time government securities were predominantly circulating.

In 1769, for the first time, securities appeared in the form of an external bonded loan of Russia, which was placed outside of Russia for a period of 10 years at 5 percent per annum.

II. 60s of the 19th century - 1897.

This period is characterized by intensive development of the securities market.

In parallel with the circulation of government securities, securities developed in conjunction with the activities of economic entities.

III. 1897-1913

This period is considered the period of formation of the "mature" securities market.

In 1897, a monetary reform was carried out in Russia. During its preparation, a number of new bond issues were issued, the issuer of which was the State Bank of Russia. In addition, other types of government securities were issued. So, for example, in the history of Russian securities, a special place was occupied by government securities of railway loans, which were an instrument of the government's investment policy.

This period was characterized by increased state regulation of the stock market and active trading in securities through stock exchanges. By the beginning of the First World War, Russia ranked fifth in the world in terms of exchange turnover after England, the USA, France and Germany.

After 1917, all operations with securities in Russia were prohibited. Bonds of internal and external government loans were cancelled. Joint-stock companies ceased to exist in the process of nationalization. Their shares and bonds have become null and void. As a result, corporate securities were withdrawn from economic circulation.

In order to attract free cash to restore the economy, the Soviet government issued a wide variety of loans during 1922-27, but all of them were characterized by a low rate and high yield. Bond holders had a number of additional benefits: they could receive bank loans secured by bonds, use bonds when paying taxes. This ensured high liquidity of government securities.

In 1926, the Instruction of the State Bank on the accounting of bills was adopted. Joint-stock companies appeared, and hence the corporate securities market. The revival of various instruments of the securities market objectively led to the formation of stock exchanges. The first Soviet exchange opened in 1921. In 1924, there were already 10 stock departments at commodity exchanges. (13)

By the end of 1924, instead of the official fixed price, government securities began to be placed at the market rate. Beginning in 1927, state-owned enterprises were required to place all reserve funds in government securities, cooperative and joint-stock companies - 60% of reserve funds.

The rejection of the New Economic Policy (NEP) led to the fact that the market for corporate securities (stocks, bonds, bills) ceased to exist.

The Great Patriotic War demanded huge financial resources. During 1942-45, four "war loans" were issued for a total of 72 billion rubles. In 1948, a new conversion loan was issued - a state two percent loan for the exchange of loan bonds issued before 1947. The exchange was carried out by savings banks. From 1946 to 1957, five loans were issued for the restoration and development of the national economy for a period of 20 years. Income was paid only in the form of winnings.

But, the current costs of servicing government loans began to exceed the proceeds from the placement of new loans, in connection with which the further issuance of new loans ceased, winning runs ceased to be carried out and the repayment of previously issued loans was delayed for 20 years.

Only in the 90s of the 20th century did Russia embark on the path of reviving the securities market. Privatization played a decisive role in the revival of the securities market.

In Russia, a mixed model of the stock market has been chosen, in which both commercial banks, which have all the rights to deal with securities, and non-bank investment institutions are present simultaneously and with equal rights.

In accordance with the Program of State Domestic Borrowings of the Russian Federation for 2016, approved by federal law"On the federal budget for 2016 and for the planning period of 2017 and 2018", in 2016, state internal borrowings through government securities (OFZ and GSO) are provided for a net volume of 1340.6 billion rubles. (in 2016 - 838.6 billion rubles). In the context of the approved state budget deficit, the Government of the Russian Federation set in 2016 the maximum volume of the issue of government securities denominated in rubles in the amount of 1,744.8 billion rubles.

Characteristics of government borrowings through OFZ for 4 months of 2016

According to the plan: the nominal volume of placement at auctions - 680 billion rubles; number of auctions in the primary market - 31 pcs.

In fact: the nominal volume of placement at auctions - 599.5 billion rubles; number of auctions in the primary market - 31; repayment amount - 171.5 billion rubles; the volume of coupon payments - 70 billion rubles.

In 4 months of 2016, all of the 31 OFZ auctions planned by the Russian Ministry of Finance took place. At the same time, the issuer did not place the new kind government securities - short-term zero-coupon OFZ1, replacing them with medium-term issues. In addition, individual mid-term and long-term OFZ issues planned for placement were replaced by issues with other parameters (terms, issue volumes). The average maturity of the placed OFZs was 5 years.

In order to increase the liquidity of the government bond market, the average issue volume of issues placed at auctions in January-April 2016 was increased to 24.2 billion rubles. compared to 18.4 and 19.5 billion rubles. in the first and second half of 2015, respectively. For individual issues, the issue volume for 4 months of 2016 was from 10.0 to 53.2 billion rubles, in 2015 - from 4.0 to 45.0 billion rubles.

Depending on investor demand, the issuer placed OFZ issues at a premium or discount to their yield on the secondary market. At auctions held over 4 months of 2016, 80.0% of the total volume offered for placement was sold (10.8 - 100.0% of the declared volume for individual issues).

The nominal volume of issues of government securities circulating on the market for 4 months of 2016 increased and increased by 428.0 billion rubles. (in 2015 - by 377.6 billion rubles). This change occurred due to the excess of placement volumes over the volumes of redemption of government bonds.

In accordance with the payment schedule, two issues of OFZ-PD (25059 and 25062) and 1/4 of the nominal value of the OFZ-AD issue (46002) were redeemed, and coupon income was paid on 39 issues of OFZ. According to the results of 4 months of 2016, the duration of the OFZ market portfolio decreased by 33 days.

At the end of 2016, the shares of portfolios of resident dealers (banks and financial companies), Russian bank investors and non-residents increased by 3.2; 0.3 and 0.6% - up to 61.2; 1.3 and 3.4% respectively. By the end of April, the share of the portfolio of investors - non-banks at face value decreased by 2.3% - to 27.6% of the nominal volume of the market portfolio of government bonds.

There was no qualitative change in the composition of investors in the OFZ market. The main investors are still a limited number of banks with state participation and the Pension Fund of the Russian Federation. The share of the Pension Fund's portfolio in the OFZ market portfolio decreased by 15.5%.

In January-April 2016, companies' issuing activity remained high in the domestic corporate bond market.

110 new issues of corporate bonds with a total volume of 540.5 billion rubles were placed on the MICEX Stock Exchange. One issue of corporate bonds in the amount of 1.4 billion rubles was placed on the RTS. On the over-the-counter market - four issues of ruble-denominated corporate bonds with a total issue volume of 7.1 billion rubles.

The high supply of securities in the primary market was due not only to the need of companies in various sectors of the economy for investment resources, but also to the attractive cost of borrowings in the bond market.

Table 1 - Characteristics of the primary market for corporate bonds on the MICEX Stock Exchange

In January-April 2016, the average rate of the first coupon of bonds placed on the MICEX Stock Exchange amounted to 8.7% per annum, having decreased by 1.2 and 0.2%. The maturity of the bonds increased to 6 years.

For 4 months of 2016, the attitude of investors towards the level of acceptable risk has changed somewhat. In 2015, the securities of issuers accounted for about 80% of the total volume of corporate bonds placed on the MICEX Stock Exchange, for 4 months of 2016 their share decreased to 50%.

Bonds of investment quality issuers (rated “AAA”, “BBB- / BBB+”) accounted for 17.4% of the primary market volume, bonds of speculative quality (rated “BB- / BB +”, “B- / B +”) - 32.6%.

As a result of the excess of the volume of placement of corporate bonds over the volume of redemption, the volume of the portfolio of bonds circulating on the domestic market increased by 11.8%.

Following the results of 4 months of 2016, the MICEX index decreased by 1.3% and at the close of trading amounted to 1666.59; the RTS index increased by 7.7%, amounting to 1906.71. market valuable financing debt

Due to increased uncertainty and instability in the global financial market in 4 months of 2016, investment demand for Russian instruments with a high level of risk remained more restrained.

In the course of public offerings on Russian and foreign stock exchanges, Russian issuers raised $9.3 billion in 4 months of 2016 (in the first and second half of 2015 - $3.3 and $2.9 billion). issues of Russian shares amounted to 14.

Analysis of the secondary securities market.

For 4 months of 2016, the activity of participants in the secondary market of the state domestic bond market was the highest in the entire history of its operation. The volume of exchange transactions in the main and off-system OFZ trading modes increased significantly.

Due to a more significant increase in the turnover of secondary trading compared to the increase in the government bond portfolio, OFZ turnover increased.

At the end of 2016, the largest volume of transactions was carried out with OFZs with maturities from 1 to 5 years (73% of the total volume of transactions). The share of transactions with government bonds up to 1 year decreased from 10 to 8%, over 5 years - increased from 17 to 19%.

The policy of the issuer in the OFZ market for 4 months of 2016 contributed to the growth of OFZ yield. The range of OFZ fluctuations was very narrow (7.24 - 7.64%).

Over 4 months of 2016, the OFZ yield curve remained increasing, its position changed insignificantly. The slope of the OFZ yield curve slightly increased, which means that there is uncertainty in the price expectations of OFZ market participants.

4 months of 2016 is characterized by a record increase in the volume of the market portfolio of government bonds and the turnover of secondary OFZ trading with a slight reduction in the duration of the government bond portfolio. The issuers placed large volumes of medium- and long-term OFZ issues, offering investors an attractive level of profitability, keeping the cost of borrowings fairly low.

For 4 months of 2016, the activity of participants in secondary trading increased significantly. The total and average daily volumes of transactions in the secondary corporate bond market on the MICEX Stock Exchange increased by 20.0% and 32.2% compared to 2015, to 2,677.1 and 22.7 billion rubles.

The share of corporate bonds of 20 leading issuers for 4 months of 2016 accounted for more than 55% of the total trading turnover (in the first and second half of 2015 - 70 and 55%).

The structure of secondary trading in corporate bonds on the MICEX Stock Exchange by issuers for 4 months of 2016: Russian Railways - 6.71%; MTS OJSC - 4.68%; OAO Mechel - 4.54%; Vnesheconombank - 4.24%; OJSC Gazprom Neft - 3.74%; OAO AK Transneft - 3%; VK-Invest LLC - 2.99%; EvrazHolding Finance LLC - 2.95%; OJSC AFK Sistema - 2.58%; OJSC Rosselkhozbank - 2.48%; AHML OJSC - 2.36%; SIBMETINVEST LLC - 2.34%; OAO LUKOIL - 2.06%; CJSC AK ALROSA - 2%; OJSC WBD PP - 1.92%; OAO ANK Bashneft - 1.6%; JSC FGC UES - 1.51%; JSC VTB Bank - 1.55%; OJSC Bratsk Aluminum Plant - 1.39%; OAO Severstal - 1.17%; OAO Gazprom - 1.04%; OJSC MDM Bank - 1.03%; OAO NK ALLIANCE - 1.01%.

For 4 months of 2016, the yield of corporate bonds mainly decreased. As a result, the average yield of bonds in the secondary market decreased to 7.34% per annum from 9.15% and 7.66% per annum.

The largest sectoral segment of the secondary market for ruble corporate bonds was the segment of bonds of credit institutions and financial companies. The share of these instruments amounted to 33% of the total volume of secondary exchange trades in corporate bonds on the MICEX Stock Exchange.

High investor demand for corporate bonds and low borrowing costs contributed to an active increase in debt burdens on the part of issuers. In the secondary market the greatest interest represented issues of bonds of issuers of the "second tier", as in the conditions of a favorable conjuncture of the domestic financial market, corporate bonds with a higher yield are in demand.

In the secondary equity market, the total trading volume increased compared to the second half of 2015, primarily due to an increase in the volume of transactions on the leading Russian stock exchange, the MICEX Stock Exchange.

At the end of April 2016, the capitalization of the stock market in the RTS increased by 7.8% compared to the end of 2015, amounting to USD 1,067.9 billion.

Following the results of 4 months of 2016, the growth rates of quotations of liquid Russian shares varied from -18.7% to +20.7%. The shares of the largest issuers of the oil and gas sector (by 1.8 - 20.7%), telecommunications (by 19.7%), chemical industry(by 15.4%), as well as the metallurgical sector (by 1.5%). Shares of the largest issuers of the electric power industry - JSC RusHydro and the banking sector - JSC VTB Bank and JSC Sberbank of Russia fell by 18.7; 14.6 and 4.1%.

Table 2 - The volume of secondary trading in shares on the main Russian stock exchanges, billion rubles.

Over 4 months of 2016, the speculative activity of market participants in the Russian stock market increased, carrying out short-term transactions with securities, which created conditions for significant fluctuations in Russian stock quotations.

As one of the successful leaders of the Russian securities market, we will cite the company LLC BrokerCreditService (BCS).

BCS Company LLC (BrokerCreditService) is one of the largest national brokers, a long-term leader of the Russian securities market in terms of turnover. Included in the category "AAA" (maximum reliability) in the rating of the National Rating Agency (NRA).

BCS investment company was founded on June 20, 1995 in Novosibirsk. In February of the following year, the company was already providing brokerage services to its first clients. In March 2000, BCS was one of the first on the Russian market to offer investors the service of online trading. The company's Moscow office was opened in July 2000.

Today FG BCS is one of the leaders of the Russian market of brokerage services. Has an extensive branch network -by state as of December 31, 2011, 54 offices and more than 60 agency points in the largest cities of Russia, including Perm. FG BCS is one of the leading operators of the Russian stock market in terms of the size of the client base - more than 100,000 clients who are brokerage services. At the same time, the company is the absolute leader among Russian brokers in terms of the number of clients of legal entities - more than 3.7 thousand companies operate on the stock market through BCS.

For 21 years of work on the stock market, FG BCS has gained a well-deserved reputation as a reliable partner, both among investors and in the professional community.