scholarly journals Financial policy regarding the categorization of individual investors in Russia and the area of protecting their interests

2020 ◽  
Vol 18 (4) ◽  
pp. 19-35
Author(s):  
Irina G. Gorlovskaya
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Securities Market ◽  
Financial Policy ◽  
Individual Investors ◽  
Financial Risks ◽  
Financial Instruments ◽  
Basic Principles ◽  
The Face ◽  
Areas Of Protection

Development of modern economy and financial market is impossible without involving the mass investor in investment processes. This is the goal of the state's financial market policy. The need to preserve savings in the face of a reduction in the key rate, and therefore a decrease in interest, encourages individuals to invest more actively in securities. New investors come to the securities market, but they are not always able to adequately assess the risk of investing in securities. To reduce the risks of individual investors, there is used a categorization mechanism, which divides them into qualified and unqualified investors, but requires improvement. Based on the analysis, it is proved that the categorization of investors cannot be limited by the regulation of the criteria for their differentiation and requires specifying the areas of protection of the interests and rights of investors. The study is based on the pragmatic Solow-Williamson methodology and a systematic approach. The indicators of investor activity and indicators characterizing the degree of investor protection in the Russian securities market are analyzed. As a result, the problems of modern categorization of individual investors in the Russian Federation are identified and analyzed. The main areas of protection of investors' interests and rights are identified, including: the choice of a financial instrument; ensuring ownership of financial instruments; transactions with financial instruments; protection from misseling; disclosure of information by issuers and professional subjects of financial markets; illegal actions of professional subjects of financial markets in relation to financial risks and protection tools. Areas of protection of investors' interests and rights are correlated with risks and protection tools. There were defined basic principles of categorization of investors-individuals.

scholarly journals The Architecture of Financial Networks and Models of Financial Instruments According to the “Just Transition Mechanism” at the European Level

2020 ◽  
Vol 13 (10) ◽  
pp. 235
Author(s):  
Otilia Manta ◽  
Kostas Gouliamos ◽  
Jie Kong ◽  
Zhou Li ◽  
Nguyen Minh Ha ◽  
...  
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Research Priorities ◽  
Financial Instruments ◽  
Global Level ◽  
European Level ◽  
Support Tool ◽  
Eu Directive ◽  
Transition Mechanism ◽  
European Investment

At the global level and in particular the European level, challenges related to climate change and the transition to green transactions have created an imperative where identifying or developing innovative financial instruments, appropriate for these priorities, have become our research priorities and objectives. Starting from the analysis of the European Investment Plan for green transactions, as well as the EU Directive 2018/410 of the European Parliament and of the Council, in conjunction with ongoing efforts to identify innovative financing tools, research is presented based on hypotheses using concepts and models of green financing. The paper aims to analyze the main concepts and phenomena that could be considered generative factors for current financial market trends, as well as the inventory of facts and acts that provide a picture of the financial market. Based on these investigations, this paper suggest how we can best analyze the economic environment, processes, and resources in terms of their predictions regarding the sustainability of financial markets in the context of current challenges. Moreover, our paper aims to highlight in our empirical research the above-mentioned aspects, including the analysis of the emergence of new financial instruments at the global level with a direct impact on financial sustainability at the European level, including reflecting certain particularities of financial markets Romania. This research will be both a scientific contribution to the specialized literature and a possible support tool for the practical activities of entrepreneurs in their economic endeavor of developing sustainable businesses.

scholarly journals TESTING THE EFFICIENCY MARKET HYPOTHESIS: AN EXAMPLE OD BOSNIA AND HERZEGOVINA

2019 ◽  
Vol 17 (1) ◽  
Author(s):  
Tijana Šoja ◽  
Zumreta Galijašević ◽  
Emina Ćeman
Keyword(s):  
Financial Markets ◽  
Bosnia And Herzegovina ◽  
Financial Market ◽  
Capital Market ◽  
Strong Influence ◽  
Weak Form ◽  
Financial Instruments ◽  
Price Movement ◽  
Run Test ◽  
Available Information

Governments of many countries, companies and business organizations last decades increasingly pay attention and recognize the importance of the capital market for economic growth and development. One of the factors that has strong influence on the capital market, as a platform for long-term borrowing and obtaining funds, is the price movement of financial instruments traded on capital market. The price movement of financial instruments is linked to the efficiency of the market, and is under strong influence of all available information about companies, which quickly reflect on the prices of financial instruments.Fama (1965) was one of the first economist who used term „efficient financial market“. He conducteda research on the financial market and pointed out that in an efficient market, on average, competition would cause that all effects of the latest market information will be included through the value of shares traded. The hypothesis of an efficient financial market suggests that the price of the shares, financial instruments, reflects all available information, so investor cannot realize extra profits if he has some certain insider information or on the basis of publicly available historical data and information. Many investors are trying to find those securities that are underestimated, and for which is expected to growth in the future. In a case of efficient financial market, it is quite impossible to find underestimated securities because information quickly incorporated into the price of securities. Ttesting of the efficiency of financial market is largely present in the developed markets, while somewhat weaker tests have been carried out on the examples of transitional financial markets. In published researches it is most often confirmed that transition countries have or have had poorly performing financial markets, especially in the initial stages of their development (Bahmani-Oskooee et al, 2016; Kvedaras and Basdevant, 2002).In this research we are testing the efficient market hypothesis for the financial market in Bosnia and Herzegovina. We tested hypothesis that the financial market is weakly efficient. For this test we are using stock index data from the Sarajevo and Banja Luka Stock Exchange, SASX10, BIRS and BATX index. The analysis includes daily, weekly and monthly index movements from 2006 to August 2018, for SASX 10 and BIRS indices, while BATX data is available from 2009 until August 2018. In the first step we calculate returns for all periods (deily, weekly and montly) between indicies and in another step we tested autocorrelation between their returns.Efficient market hypothesis has been tested through three statistical tests: autocorrelation test, run test and variance test. The results obtained by applying different tests do not give a single answer to the question whether financial market in Bosnia and Herzegovina perform at a low level of efficiency. Auto-correlation tests reject the hypothesis of weak form market efficiency,while the run test and the test of variance ratios confirm the weak form of market efficiency. Such findings suggest that it is not possible, with sufficient precision, to predict trends in the financial market in Bosnia and Herzegovina.

Financial Risk Management

2016 ◽  
pp. 301-311
Author(s):  
Mirela-Madalina Stoian ◽  
Rares-Gabriel Stoian
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Markets ◽  
Financial Risk ◽  
Liquidity Risk ◽  
Financial Risks ◽  
Basic Principles ◽  
Financial Risk Management ◽  
Management Framework ◽  
Risk Management Framework

The present paper intends to serve as an introduction into the financial risk management universe. It starts with the basic assumption that performance of an organization is inseparable from the risks it is facing. Any organization should have in place the necessary tools to identify, assess and constantly measure the risks it is exposed to. The paper focuses in defining the basic principles in creating a viable risk management framework that keeps track of three major categories of identified financial risks: market risk, credit risk and liquidity risk. Emphasis is put on the models to measure these types of risks but also on the tools an organization can use in order to reduce them. The second part of the paper is dedicated to recent events that shaped and shocked financial markets and illustrate the consequences faced by organizations when risks are not properly assessed and the risk management models in place are based on dangerously unrealistic notions.

scholarly journals Modification of Personal Investment Tools from the Perspective of Digital Finance and Its Influence on Ukrainian Finance Market

2021 ◽  
Vol 6 (521) ◽  
pp. 205-212
Author(s):  
V. O. Melnyk ◽  
Keyword(s):  
Financial Market ◽  
Financial Services ◽  
Individual Investors ◽  
Financial Instruments ◽  
Finance Industry ◽  
Current State ◽  
Personal Investment ◽  
Brokerage Service ◽  
Effective Use

Drastic changes in the financial services market under the influence of digitalization determine the relevance of research of the modern structure of this market, taking into account the emergence and development of the FinTech innovations. The increase in new investment instruments is attracting the attention of an increasing number of individual investors in the digital finance industry. Considering these tools, the preferences of individual investors require a separate study. The article is aimed at studying the financial market in digital finance and analyzing such types of investments as cryptocurrencies and crowdfunding, as well as the characterizing the online brokerage as a way to obtain investment services among individual investors. As a result of the study, the place and role of cryptocurrencies, crowdfunding and online brokerage in the investment activities of individuals is substantiated; the main mechanisms of work of these financial instruments are allocated and features of their development in Ukraine are characterized. The main disadvantages and advantages of crowdfunding and cryptocurrencies are defined and further steps are proposed regarding the prospects for their development in Ukraine. In addition, the article analyzes the current state of functioning of the online brokerage service in Ukraine and proves the relevance of the allocation of these financial instruments at the legislative level. Prospects for further research in this direction are the analysis of other digital instruments of personal investments, as well as a detailed study of the specifics of functioning of crowdfunding, cryptocurrencies and online brokerage in Ukraine. For the more efficient functioning of investment instruments in the sphere of digital finance, as well as effective use in practical activities, it becomes necessary to closer define these concepts at the legislative level and to substantiate the specifics of their work in detail.

scholarly journals PROBLEMS AND PROSPECTS OF THE SECURITIES MARKET DEVELOPMENT: DOMESTIC AND INTERNATIONAL EXPERIENCE

2021 ◽  
Vol 80 (1) ◽  
pp. 216-221
Author(s):  
N.E. Dabyltaeva ◽  
◽  
D.E. Galymzhan ◽  
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Main Tool ◽  
Developed Countries ◽  
International Experience ◽  
Securities Market ◽  
Market Development ◽  
Foreign Experience ◽  
Modern Process ◽  
The Republic

The securities market is considered as a part of the financial market. Today, the securities market has become the main object of research for many economists and scientists. One of the main reasons for this trend is that in the context of globalization of the world's economies, the main tool for the development of the financial sector of the state's economy is the development of the securities market. As a result of the modern process of globalization, the financial markets of States are becoming closer and more dependent on each other. The formation and organization of the securities market of the Republic of Kazakhstan began after the country gained its sovereignty. One of the main features of the formation of the domestic securities market during this period is the use of foreign experience of developed countries by the state

scholarly journals Cognitive Modeling of Sustainability of the Russian Financial Market

2019 ◽  
Vol 10 (6) ◽  
pp. 145
Author(s):  
Nemer Badwan ◽  
Elena Panfilova
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Cognitive Modeling ◽  
Foreign Exchange Market ◽  
Cumulative Effect ◽  
Financial Policy ◽  
Constant Attention ◽  
Priority Direction ◽  
The Stability ◽  
Near Future

Object: The stability of the financial market is one of the most important components of the inflow of capital into the country and ensuring economic growth. Cognitive modeling of stability of the Russian financial market is carried out.Purposes: Drawing up a cognitive map of the Russian financial market, impulse modeling of changes in its segments in order to find the main factors of stability of the national financial market.Methodology: Cognitive research methods: cognitive analysis and cognitive modeling.Result of research: The stability of the financial market is formed due to the cumulative effect of all its segments. However, the Russian financial market is most sensitive to changes in the money market, foreign exchange market, corporate and government borrowing market. Despite the sanction’s restrictions, the domestic market remains dependent on international financial markets.Application: The results are applicable in the formation of financial and monetary policy of the country.Summary: Achieving stability in the financial market requires constant attention from the regulator for liquidity in the market, stability and predictability of the national currency. The priority direction of development of the state financial policy in the near future should be the establishment of relations with leading players in the world financial markets and international financial institutions.

scholarly journals Certain aspects of current state of domestic financial market

2021 ◽  
Vol 11/3 (-) ◽  
pp. 8-12
Author(s):  
Maryna BORMOTOVA ◽  
Tetiana MASHOSHYNA ◽  
Olena TROINIKOVA
Keyword(s):  
Stock Market ◽  
Financial Market ◽  
Securities Market ◽  
Financial Resources ◽  
National Commission ◽  
Financial Instruments ◽  
Global Indices ◽  
Banking Institutions ◽  
High Level ◽  
Investment Process

Introduction. The financial market, as a combination of exchange and redistribution relations associated with the processes of purchase and sale of financial resources is a complex system that is an indicator of the development of the economy as a whole. In the context of global challenges, the development trends of the financial market and its components are expanding. The securities market today occupies an increasing segment of the financial market, despite the fact that it is under development. Recently, it is characterized by a high level of dynamism. And already now it has positive results for the participants. Purpose. A study of the securities market, the structure of its financial instruments and the circle of participants. Results. Modern financial processes are characterized by the emergence of new financial instruments and technologies, which expands and forms an alternative to the placement and attraction of financial resources outside of banking institutions and increases the circle of participants. An example is the emergence of Internet trading. Internet trading is a system of securities work that gives the investor access to exchange information, and also makes it possible to conclude transactions on the purchase and sale of securities on the exchange in real time using a special certified program installed on a personal computer. The expansion of the range of financial instruments that contribute to the increase of the circle of participants in the financial process in the stock market occurred at the expense of Bonds of Internal Government Loans of Ukraine, whose income rates are higher then bank. They became the first hryvnia instruments included in the global indices of debt securities MVIS (MV Index Solutions. Also in October this year, the National Commission on Securities and Stock Market decided to allow the circulation of foreign securities in Ukraine. As a result, today Ukrainian investors can use the opportunity to invest in 85 securities of foreign issuers. All this makes it possible to obtain additional financial resources for both individual (households) and collective entities (communities). Conclusion. Domestic government bonds are effective financial instruments for the majority of participants in the investment process in the stock market are the first hryvnia instruments to be included in the the global MVIS debt securities indices. There is also a tendency to expand the circle of participants and the structure of financial instruments of the Ukrainian stock market due to the possibility of purchasing state securities by territorial communities, as well as admission of foreign securities by the Cabinet of Ministers of Ukraine.

scholarly journals The Essence and Significance of Financial Instruments for Enterprises in Poland in 2010-2018

2020 ◽  
Vol 3 (27) ◽  
pp. 109-124
Author(s):  
Marta Paduszyńska
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Capital Investments ◽  
Financial Instruments ◽  
Financial Leverage ◽  
Central Statistical ◽  
Central Statistical Office ◽  
The Subject ◽  
Key Indicators

The purpose of the article/hypothesis: The aim of the study is an attempt to show the degree of use of financial instruments by non-financial enterprises operating on the Polish market and to determine whether their application translates into the financial results achieved by these enterprises. The hypothesis was adopted that the importance and use of financial instruments by enterprises on the Polish market is not significant, however, as a result of global transformations and the growing importance of financial markets, the activity of entities in this respect will increase. Methodology: In order to determine the degree of use of financial instruments among enterprises, the data published by the Central Statistical Office (GUS) for the years 2010–2018 were used and the key indicators illustrating the involvement of enterprises in the instruments available on the financial market were calculated. The literature on the subject was also reviewed and analyzed. Results of the research: The conducted considerations that non-financial enterprises in the polish market showed an increase in involvement in financial activities, as evidenced by the growing share of financial instruments, both on the active and passive side. On the passive side, the use of credits and loans in financing the activities of entities increased. This increase, however, did not translate into the use of the effects of financial leverage in the surveyed enterprises and an increase in the profitability of equity. In the case of assets, in the analyzed period there was an increase in the involvement of free funds in investments, mainly due to an increase in equity financial instruments. However, the analysis of financial revenues in total revenues may suggest that greater involvement in the financial sphere does not translate into profitability of assets and the results of the surveyed entities. It should be emphasized, however, that the development of the financial market and the increasing availability and variety of financial instruments strengthen the interest of enterprises in capital investments.

Financial Risk Management

2018 ◽  
pp. 162-173
Author(s):  
Mirela-Madalina Stoian ◽  
Rares-Gabriel Stoian
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Markets ◽  
Financial Risk ◽  
Liquidity Risk ◽  
Financial Risks ◽  
Basic Principles ◽  
Financial Risk Management ◽  
Management Framework ◽  
Risk Management Framework

The present paper intends to serve as an introduction into the financial risk management universe. It starts with the basic assumption that performance of an organization is inseparable from the risks it is facing. Any organization should have in place the necessary tools to identify, assess and constantly measure the risks it is exposed to. The paper focuses in defining the basic principles in creating a viable risk management framework that keeps track of three major categories of identified financial risks: market risk, credit risk and liquidity risk. Emphasis is put on the models to measure these types of risks but also on the tools an organization can use in order to reduce them. The second part of the paper is dedicated to recent events that shaped and shocked financial markets and illustrate the consequences faced by organizations when risks are not properly assessed and the risk management models in place are based on dangerously unrealistic notions.

scholarly journals FINANCIAL RISKS OF THE BANK ON THE STOCK MARKET

2019 ◽  
Vol 7 (2) ◽  
pp. 71-75
Author(s):  
Вадим Макаров ◽  
Vadim Makarov
Keyword(s):  
Stock Market ◽  
Commercial Banks ◽  
Investment Strategy ◽  
Securities Market ◽  
Financial Risks ◽  
Financial Instruments ◽  
Composition And Structure

The article describes the role of commercial banks as professional participants of the stock market and presents an analysis of the activities of PJSC "SBERBANK" in securities market. As part of the analysis, the composition and structure of the Bank's assets were considered, the risks of the investment strategy were determined; the Bank's investments in financial instruments were evaluated, grouped by portfolios and by types of securities. Based on the study, priority directions of the investment strategy of PJSC "SBERBANK" on the stock market is determined.

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