Financial market as a constituent of social and economic sphere of state

Abstract

The interconnection of social and economic life with activity of financial market of the state is exposed in the article.

State of by deepening of processes of privatizing and development of enterprise, expansion of infrastructure of market relations cause the necessity of further perfection of credit and monetary relations. It also causes the necessity of creation of special sector of ménage that is connected with the circulation of securities, credit resources, currency assets and other financial instruments.

Financial market belongs undoubtedly to the spheres of social and economic life of the country. Market of equities is the unchanging constituent in the structure of the financial market.

In the economy of every country, there is a constant rotation of financial resources. The enterprises, organizations, private firms, corporations, state, individual managers, various financial institutes are its main subjects. Thus, some subjects have a requirement in additional funds while the others accumulate savings, which can be used for investing. The aim of financial market can be determined as the accumulation and effective placing of savings in the economy of country.

Thus, a financial market is defined as money relations that arise in the process of purchase and sale of financial assets under the acts of demand and supply on the borrowed capital. Its circulation is implemented in securities.