Investment markets

  Let's single out the major markets: Securities markets. Foreign exchange markets. Commodity. Real estate markets. futures market instruments
Stocks and bods market
  The securities market is part of a common financial market, which produces emissions (emissions this issue) and the purchase and sale of various securities.
It is usually divided into primary and secondary market.
  The primary market is called a market in which to place new securities. For example, you have a company and you issue shares, allowing other people to chip in your company, becoming co-owners of your business.
  You can say that you are your shares on the primary market.
  What is a stock?
  The action in plain language, this paper, confirming the ownership of part of the company.
  For example, if there is a LLC (limited liability company), then it is usually one or more of the co-founders (co-owners). For example, 2 people decide to start a business, chipped equally at the beginning and opened a company with a 50% share each.
If they are not thrown off in equal installments, one took off 30%, other 70%, they have a share of 30% and 70%, respectively.
  Subsequently, they can sell their shares to other people. For example, it wants to join the man, he takes off the money (to buy a stake), and contribute to the list of owners (co-founders).
This is a rather tedious process. In order to become a co-owner LLC, you need not only to make money. We must make the appropriate entries in the constituent documents, submit the data to the tax, etc. Whenever a change, add, or leave the co-founders, have to go quite a long procedure of change of securities for the entire company.
   And if so many people want to become co-owners of the company and have the money for this?         What then?
  Then the company it makes sense to release their stocks. Each share a share in the company. If they are released 1 million units, so one share is one million shares of the company.
Anyone, whether a large organization or a simple man in the street can freely buy shares through a securities exchange. And to become a co-owner of alarge company, respectively.
   If you go and buy shares of Sberbank, then you absolutely officially become a co-owner of the bank. Yes, most of the owners of shares not called ownersand shareholders. But actually it does not change.
  If the shares are sold in the primary market, ie sold for the first time, then the money goes to the company that sells its shares. Money for the sharesreceived are not owners of the company, their personal accounts, but at the expense of the company. And, accordingly, the company receives the influx of money from the sold shares. With this money she could expand their production, thereby increasing the volume of production, sales and profits,respectively.
In the secondary market, the stock is no longer sells the company and the owners of the shares who either once bought those shares at their issue, either themselves bought from other owners.
  One more question. What business owners to issue shares, if in fact it turns out that they sell their shares?
  In any business, once the moment comes when your own money is not enough. And businesses need not be unprofitable to do so. Quite the contrary.
  For example, you produce some unique food product. For example, potato chips, which will not get fat and lose weight, and at the same time they are very tasty and healthy. Women have them growing breasts, while the biceps of men.
  You started to produce them, built on all the money you have a small plant that operates at full capacity.
  Due to the fact that your chips are very popular with consumers, large wholesale companies from different cities pluck your phone and fill up your email with bids for the purchase of your chips with huge parties. In order to resell them to retail stores in other regions.
  You put a blank sheet in front of you, take a calculator, and after uncomplicated calculations realize that to meet the demand, you need to build at least another 3 plant. Only in the near future. But in general, you need one plant in each federal district. It is millions of dollars, which you do not.      

  However, there are orders, there is a demand.
  Banks are much money you will not, because you do not have collateral, such an appropriate scale.
  But with such prospects, you can sell part of its stake to the money to build factories. If your share is now worth 1 million, then when you have 10 plants, and they will be working at full capacity, your share could cost 1 billion. Accordingly, you can sell 50% of its shares are not 500 thousand dollars and over 100 million, if you can prove that your product really has great prospects.
  You more profitable to sell part of its stake, for example, 50%, and in a few years become the owner of shares in the business worth 500 million dollars, than to own 100% of the shares of their business worth 1 million. And to close, if there will be competitors who will copy your product and build a plant for you.
  That's why owners profitable to convert their shares into shares and sell them.
  I purposely brought on much exaggerated examples so you can understand the essence.

  Resale of Securities.
  The secondary market is the main place of purchase and sale of any previously issued securities. And it is with this market in most cases are dealt so-called private investors.
  If the primary market of securities of the co-founders of the company are interested to sell the shares for the highest possible price in order to attractmoney into the company, then in the secondary market shares are purchased mainly for two purposes:
1. Buy and wait when they become more expensive, and sell at a better price
to get the difference between the purchase and sale.
2. buy shares in an amount to have an interest sufficient to influence the management of the company.

  In either case, all are interested in to buy shares at a low price as possible. And so after buying the stock, they rose in price.
  In addition to the shares in the securities market and include bonds.Bonds are securities entitling their holders to produce within the specified period of their nominal value and fixed interest. Bonds are a form of cash loan. Sellers are the debtors, consumers creditors. Again, if quite simple, the bond a paper on which is written, that one person (one company) took (a) a loan from another person (organization).
  They can be registered. Where is written that Mr. Jons took from Mr. Povirt debt. But in the securities market are traded bearer bonds. Specify only the issuer of the bond, it is the organization that issued them. And it will make a profit on the one who presents the bond.
  Bonds are rated, ie interest-free and interest.

  For what they are necessary, if there are banks?
  Firstly, for the company that produces them this is a simplistic way of attracting credit. In fact it is the same loan. Only the buyer gives his bonds when the bond pays the cost. The company avoids the red tape associated with the lending bank. For large organizations, where there is a complex structure of loans, it can be problematic in the short term to get another loan. But to produce and sell the bonds, it is much easier.
  For buyers, bonds more profitable deposits only because of liquidity. Liquidity the ability to quickly sell anything. For example, if you put money in the bank deposit at 10% per annum, and want to remove them before, you will lose their interest. So your money is frozen for a year.
  And if you have tighter bonds to the amount you can sell them at a price slightly higher than you bought them. And still get a small profit. Or if you have the opportunity to invest more than just the money, you can sell some of the bonds, and some will be saved on these securities.
  Buy and sell stocks and bonds can be custom designed to exchanges. Exchange is a company that is engaged in trading organization. In fact it is a virtualmarket securities. They have the right to sell it only brokers and dealers.
  Brokers these are companies that take your application for the purchase of certain securities. You transfer the money to them, and they on your behalf and on your money buy them. When you need to sell a stock, you also make a claim, and sell securities on your behalf and the money credited to your account. Brokers work for a percentage.