Lesson 11. Stock market 2
So, in the previous chapters, we learned what the exchange and met with leaders of the world's stock exchanges. Now we will discuss the main participants of the Stock Exchange. You already know that the activities of the stock exchange can be carried out only by its members. So you know that to participate in the exchange they have to comply with the established laws and stock exchange requirements. The presence of a special license - one of these requirements. License issued by the Federal Financial Markets Service (FFMS). She is licensed implementation of operations on the stock exchanges. Dealers and brokers are the only members who can trade on the stock exchange. Let's see how they differ and what are their functions?
Dealers - professional participants of the stock exchange, which include banks and investment firms who trade securities. They do business on their own behalf, for my money and do not engage in brokering. Transactions they enter into with clients, brokers, and each other. On the difference between bid and ask prices, as well as on changes in securities prices and currency they make their profit.
Brokers - professional participants of the stock exchange, which have the right to make transactions with securities on behalf of the customer and at his expense. It intermediaries asking for transactions between buyers and sellers of currencies, securities and other financial assets. Do you know on what they earn? Simple! Their income - a commission for brokering activities, which they receive when making transactions with securities. Depends on the volume of transactions amount to be received by the broker as a reward. At the moment, the bulk of brokerage operations performed by large brokerage firms that have a large network of branches and links with the banking institutions.
Job broker is simple: the client gives him an order to buy or sell securities and the broker shall make this request in the market, which sought a counter claim, after which they both performed. In the broker's obligation is fair and accurate execution of client orders.
We found that the participants of the Stock Exchange are the dealers and brokers. Now accentuate the main difference from the broker dealer: dealer does business on its own behalf and at its own expense, while working as a broker on behalf of the client, and is, in fact, an intermediary. The dealer operates independently on the stock exchange and is not engaged in brokering activities - all invested in securities, metals and currency of the money belongs to him.
Along with the dealers and brokers, discussed in the previous chapter, the following members Stock Exchange: receptionist, clearing company and depository to ensure its functioning. Their activities are also subject to licensing by the Federal Exchange Commission. Let's see what are the main functions of these institutions and how they differ among themselves.
Registrar (or Registrar) - is party to the Stock Exchange, the activity of which is reduced to maintaining a register of all the owners of the securities. This activity is an exclusive, which means that the registrar can not provide other services and combine their activities. The collection, storage and transmission of documents and information about the personal accounts is the main function of the registrar. On the stock exchange through these accounts and keep records of the securities. Registrar shall:
provide information from the registry;
open personal accounts and perform operations on them;
check the authority of the persons signing the documents;
inform registrants about their rights and about the procedure and how to implement them.
Clearing Company - is a member of the stock exchange, which provides non-cash payments for sold and delivered goods and securities, as well as for services rendered, which are realized by mutual offset.
Clearing is the collection, verification, correction of information on market transactions and the preparation of the relevant accounting documents. So determined by the mutual obligations of the parties. Just clearing setoff and supply estimated.
The Registrar and the clearing company formed and exist to protect the interests of members of the exchange and their clients, and to ensure the financial integrity of the stock markets as a whole. Clearing Company reserves the buyer and seller of a free and independent of each other, as if breaking the direct link between them formed in the process of buying and selling. Thus, a single buyer or seller can be replaced with another, who also made a deal on the exchange, and was in contact only with the clearing company. You do not need any permission from the original partner in the transaction is made. Clearing Company is the guarantor of transactions and bears full responsibility.
Clearing companies prevent default by companies in various economic shocks or increased volume of speculative transactions, which may lead to termination of the stock market and the bankruptcy of its members.
The depositary is a legal person, a stock exchange that is based on the license of the professional leads depository activities. The activities of the Depositary shall:
in implementing the settlement of transactions by conducting operations in the exchange and over the counter market;
in the calculation and payment of dividends, the payment of taxes on income;
in accounting and storage of securities that may be in store as the depositary, and exist in the form of records;
in securities lending, as well as providing other services.
The responsibility of the depositary is to ensure the safety of securities or rights to them, and actions solely to the depositor (the person who has entered into an agreement with the depositary). The Depositary has no right to carry out transactions in securities, to dispose of or control them. Because the securities are not owned by the depositary, they can not be presented for collection by its obligations. At this point in our country's largest depositories are: Depository Clearing Company and the National Depository Center.
Taking into account the possibility of combining several types of professional activities, the organizational structure of each exchange is unique and quite complex. For example, the depositary may exercise at the same time dealer, clearing and brokerage activities.
We have examined the activities of professional participants of the stock market. We must not forget that the law governs all relations between them, and assigned to duty on the exchange only experienced, reliable and qualified participants allows licensing activities.
Along with the dealers and brokers, discussed in the previous chapter, the following members Stock Exchange: receptionist, clearing company and depository to ensure its functioning. Their activities are also subject to licensing by the Federal Exchange Commission. Let's see what are the main functions of these institutions and how they differ among themselves.
Registrar (or Registrar) - is party to the Stock Exchange, the activity of which is reduced to maintaining a register of all the owners of the securities. This activity is an exclusive, which means that the registrar can not provide other services and combine their activities. The collection, storage and transmission of documents and information about the personal accounts is the main function of the registrar. On the stock exchange through these accounts and keep records of the securities. Registrar shall:
provide information from the registry;
open personal accounts and perform operations on them;
check the authority of the persons signing the documents;
inform registrants about their rights and about the procedure and how to implement them.
Clearing Company - is a member of the stock exchange, which provides non-cash payments for sold and delivered goods and securities, as well as for services rendered, which are realized by mutual offset.
Clearing is the collection, verification, correction of information on market transactions and the preparation of the relevant accounting documents. So determined by the mutual obligations of the parties. Just clearing setoff and supply estimated.
The Registrar and the clearing company formed and exist to protect the interests of members of the exchange and their clients, and to ensure the financial integrity of the stock markets as a whole. Clearing Company reserves the buyer and seller of a free and independent of each other, as if breaking the direct link between them formed in the process of buying and selling. Thus, a single buyer or seller can be replaced with another, who also made a deal on the exchange, and was in contact only with the clearing company. You do not need any permission from the original partner in the transaction is made. Clearing Company is the guarantor of transactions and bears full responsibility.
Clearing companies prevent default by companies in various economic shocks or increased volume of speculative transactions, which may lead to termination of the stock market and the bankruptcy of its members.
The depositary is a legal person, a stock exchange that is based on the license of the professional leads depository activities. The activities of the Depositary shall:
in implementing the settlement of transactions by conducting operations in the exchange and over the counter market;
in the calculation and payment of dividends, the payment of taxes on income;
in accounting and storage of securities that may be in store as the depositary, and exist in the form of records;
in securities lending, as well as providing other services.
The responsibility of the depositary is to ensure the safety of securities or rights to them, and actions solely to the depositor (the person who has entered into an agreement with the depositary). The Depositary has no right to carry out transactions in securities, to dispose of or control them. Because the securities are not owned by the depositary, they can not be presented for collection by its obligations. At this point in our country's largest depositories are: Depository Clearing Company and the National Depository Center.
Taking into account the possibility of combining several types of professional activities, the organizational structure of each exchange is unique and quite complex. For example, the depositary may exercise at the same time dealer, clearing and brokerage activities.
We have examined the activities of professional participants of the stock market. We must not forget that the law governs all relations between them, and assigned to duty on the exchange only experienced, reliable and qualified participants allows licensing activities.
So, in the previous chapters, we learned what the exchange and met with leaders of the world's stock exchanges. Now we will discuss the main participants of the Stock Exchange. You already know that the activities of the stock exchange can be carried out only by its members. So you know that to participate in the exchange they have to comply with the established laws and stock exchange requirements. The presence of a special license - one of these requirements. License issued by the Federal Financial Markets Service (FFMS). She is licensed implementation of operations on the stock exchanges. Dealers and brokers are the only members who can trade on the stock exchange. Let's see how they differ and what are their functions?
Dealers - professional participants of the stock exchange, which include banks and investment firms who trade securities. They do business on their own behalf, for my money and do not engage in brokering. Transactions they enter into with clients, brokers, and each other. On the difference between bid and ask prices, as well as on changes in securities prices and currency they make their profit.
Brokers - professional participants of the stock exchange, which have the right to make transactions with securities on behalf of the customer and at his expense. It intermediaries asking for transactions between buyers and sellers of currencies, securities and other financial assets. Do you know on what they earn? Simple! Their income - a commission for brokering activities, which they receive when making transactions with securities. Depends on the volume of transactions amount to be received by the broker as a reward. At the moment, the bulk of brokerage operations performed by large brokerage firms that have a large network of branches and links with the banking institutions.
Job broker is simple: the client gives him an order to buy or sell securities and the broker shall make this request in the market, which sought a counter claim, after which they both performed. In the broker's obligation is fair and accurate execution of client orders.
We found that the participants of the Stock Exchange are the dealers and brokers. Now accentuate the main difference from the broker dealer: dealer does business on its own behalf and at its own expense, while working as a broker on behalf of the client, and is, in fact, an intermediary. The dealer operates independently on the stock exchange and is not engaged in brokering activities - all invested in securities, metals and currency of the money belongs to him.
Along with the dealers and brokers, discussed in the previous chapter, the following members Stock Exchange: receptionist, clearing company and depository to ensure its functioning. Their activities are also subject to licensing by the Federal Exchange Commission. Let's see what are the main functions of these institutions and how they differ among themselves.
Registrar (or Registrar) - is party to the Stock Exchange, the activity of which is reduced to maintaining a register of all the owners of the securities. This activity is an exclusive, which means that the registrar can not provide other services and combine their activities. The collection, storage and transmission of documents and information about the personal accounts is the main function of the registrar. On the stock exchange through these accounts and keep records of the securities. Registrar shall:
provide information from the registry;
open personal accounts and perform operations on them;
check the authority of the persons signing the documents;
inform registrants about their rights and about the procedure and how to implement them.
Clearing Company - is a member of the stock exchange, which provides non-cash payments for sold and delivered goods and securities, as well as for services rendered, which are realized by mutual offset.
Clearing is the collection, verification, correction of information on market transactions and the preparation of the relevant accounting documents. So determined by the mutual obligations of the parties. Just clearing setoff and supply estimated.
The Registrar and the clearing company formed and exist to protect the interests of members of the exchange and their clients, and to ensure the financial integrity of the stock markets as a whole. Clearing Company reserves the buyer and seller of a free and independent of each other, as if breaking the direct link between them formed in the process of buying and selling. Thus, a single buyer or seller can be replaced with another, who also made a deal on the exchange, and was in contact only with the clearing company. You do not need any permission from the original partner in the transaction is made. Clearing Company is the guarantor of transactions and bears full responsibility.
Clearing companies prevent default by companies in various economic shocks or increased volume of speculative transactions, which may lead to termination of the stock market and the bankruptcy of its members.
The depositary is a legal person, a stock exchange that is based on the license of the professional leads depository activities. The activities of the Depositary shall:
in implementing the settlement of transactions by conducting operations in the exchange and over the counter market;
in the calculation and payment of dividends, the payment of taxes on income;
in accounting and storage of securities that may be in store as the depositary, and exist in the form of records;
in securities lending, as well as providing other services.
The responsibility of the depositary is to ensure the safety of securities or rights to them, and actions solely to the depositor (the person who has entered into an agreement with the depositary). The Depositary has no right to carry out transactions in securities, to dispose of or control them. Because the securities are not owned by the depositary, they can not be presented for collection by its obligations. At this point in our country's largest depositories are: Depository Clearing Company and the National Depository Center.
Taking into account the possibility of combining several types of professional activities, the organizational structure of each exchange is unique and quite complex. For example, the depositary may exercise at the same time dealer, clearing and brokerage activities.
We have examined the activities of professional participants of the stock market. We must not forget that the law governs all relations between them, and assigned to duty on the exchange only experienced, reliable and qualified participants allows licensing activities.
Along with the dealers and brokers, discussed in the previous chapter, the following members Stock Exchange: receptionist, clearing company and depository to ensure its functioning. Their activities are also subject to licensing by the Federal Exchange Commission. Let's see what are the main functions of these institutions and how they differ among themselves.
Registrar (or Registrar) - is party to the Stock Exchange, the activity of which is reduced to maintaining a register of all the owners of the securities. This activity is an exclusive, which means that the registrar can not provide other services and combine their activities. The collection, storage and transmission of documents and information about the personal accounts is the main function of the registrar. On the stock exchange through these accounts and keep records of the securities. Registrar shall:
provide information from the registry;
open personal accounts and perform operations on them;
check the authority of the persons signing the documents;
inform registrants about their rights and about the procedure and how to implement them.
Clearing Company - is a member of the stock exchange, which provides non-cash payments for sold and delivered goods and securities, as well as for services rendered, which are realized by mutual offset.
Clearing is the collection, verification, correction of information on market transactions and the preparation of the relevant accounting documents. So determined by the mutual obligations of the parties. Just clearing setoff and supply estimated.
The Registrar and the clearing company formed and exist to protect the interests of members of the exchange and their clients, and to ensure the financial integrity of the stock markets as a whole. Clearing Company reserves the buyer and seller of a free and independent of each other, as if breaking the direct link between them formed in the process of buying and selling. Thus, a single buyer or seller can be replaced with another, who also made a deal on the exchange, and was in contact only with the clearing company. You do not need any permission from the original partner in the transaction is made. Clearing Company is the guarantor of transactions and bears full responsibility.
Clearing companies prevent default by companies in various economic shocks or increased volume of speculative transactions, which may lead to termination of the stock market and the bankruptcy of its members.
The depositary is a legal person, a stock exchange that is based on the license of the professional leads depository activities. The activities of the Depositary shall:
in implementing the settlement of transactions by conducting operations in the exchange and over the counter market;
in the calculation and payment of dividends, the payment of taxes on income;
in accounting and storage of securities that may be in store as the depositary, and exist in the form of records;
in securities lending, as well as providing other services.
The responsibility of the depositary is to ensure the safety of securities or rights to them, and actions solely to the depositor (the person who has entered into an agreement with the depositary). The Depositary has no right to carry out transactions in securities, to dispose of or control them. Because the securities are not owned by the depositary, they can not be presented for collection by its obligations. At this point in our country's largest depositories are: Depository Clearing Company and the National Depository Center.
Taking into account the possibility of combining several types of professional activities, the organizational structure of each exchange is unique and quite complex. For example, the depositary may exercise at the same time dealer, clearing and brokerage activities.
We have examined the activities of professional participants of the stock market. We must not forget that the law governs all relations between them, and assigned to duty on the exchange only experienced, reliable and qualified participants allows licensing activities.
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