The global financial market: the main aspects

The global financial market is considered as a single loan market residents of different countries.He began to take shape in the 60's, when especially active began to conclude the deal between representatives of different countries, that is, there has been the development of international operations.

in the process of merging many companies from different countries began to form international organizations, companies and firms which are free to carry out their activities at the international level.This, in turn, contributed to the convergence of the domestic markets, and subsequently formed a single world financial market.This happened thanks to the legislative government revenues and mitigate its borders.And the development of economic relations between the two countries carried out in the market, due to the constant improvement of computer technology and the development of new means of communication.

global financial market and its structure.

If we consider the term "global financial market", as the treatment of financial assets at the international level, it is conventionally divided into external and internal.Domestic financial markets are divided into two categories: market operations in foreign currency and national.The latter, of course, occupies a large part of the country of operations, that is, the transaction of sale and purchase of any securities or other assets are made only in the currency of that country.The market, which are securities transactions in a foreign currency are not so large-scale operations like the previous one, also subject to strict control by the state.

global financial market and includes such components as foreign markets.External to the country considered to be the market of other countries in which the movement of financial assets in the currency of that State.It is conventionally divided into foreign and international and Euromarket.In the international market are transactions in foreign currency, does not belong to the country of the issuer of the securities.However, it is not necessary to draw a parallel name "Euromarket" with its geographic location, or tie it to a single currency, which is considered an international in Europe.

Global financial markets are sometimes seen in terms of circulation term financial assets.According to this classification can be identified as money market instruments with maturities less than a year.A assets, which can be carried out or that the operation more than one year, as a rule, are traded on the capital market.Real short-term monetary instruments allow different companies and firms to maintain its own solvency and liquidity.For example, if you want to increase the authorized capital, the board of the bank decides to increase the number of shares.This establishes a balance of equity and does not have to resort to borrowing from other banks or organizations.

on the equity basis of the global financial market is divided into primary and secondary.Under the primary mean a market in which assets are traded directly issued by the issuer.In the secondary market the securities sold by other economic entities who have already purchased their previously issuers.

structure of the world market depends largely on the organizational trait, according to which it is divided into the exchange and unorganized.On the informal market transactions can be carried out through an intermediary or directly between the parties, without going through an additional check.Dividends on such transactions, tend to be higher than it would be in the stock market, as there is a fairly high risk of default funds.In organized financial markets, each security is thoroughly tested, called listing.That is why the owners of assets can be assured of their reliability and the risk of such transactions are much lower, which explains the low income.