Objectives of the stock exchange. Purchase and sale of securities
Transactions related to investment units, shares and bonds take place on the stock exchange. This is a specially organized and equipped platform for transactions in the stock market. In general, the processes on the site can be described as trading assets at the actual cost.
Professional intermediaries are between buyers and sellers: brokers, banks, investment companies. All activities of the above-mentioned entities in the Russian Federation are subject to the law “Concerning the Securities Market”.
By the way, asset trading also takes place outside of specialized platforms and is called over-the-counter. At the same time, the mediators do not disappear. But such activities involve risks for the buyer and the seller. Therefore, the investor should still contact the stock exchanges.
The main marketplaces of Russia are Saint Petersburg International Commodity Exchange and Moscow Exchange. Moscow is trading in securities, commodities (e.g. gold), currency, futures and options. In Saint Petersburg, they buy and sell raw materials (such as oil), as well as futures.
Objectives of the stock exchange. Who issues securities?
The Issuer of assets is not only a company, as it may seem at first glance. For example, bonds are issued by firms, countries, regions and cities. In short, everyone who needs funds for development and who undertakes to return them in a specific time.
Bonds are essentially ordinary promissory notes that can be traded. If the purchaser of the securities offered in the equity and the management of the company, this is shares.
The Issuer determines the parameters of the security. In particular: number, cost of one asset, period of validity. The issue of securities is necessarily marked at the state level in the relevant register.
So, the investor is the owner of free funds that he decided to invest to earn. The mediator is ready to help in this. There are many brokerage firms and banks: they are all licensed by the state.
It should be noted that the broker is authorized to withhold from your brokerage account income tax of 13%.
Each investor is responsible for trading on the stock exchange, so it is recommended to develop own strategy. The broker will only execute the investor’s decisions. And for inexperienced users, there are trust managers. This is the name of the state-licensed organizations it is possible to discuss the trading strategy with on the stock exchange. The main task of the manager is to bring profit to his client. The investor in this case remains dependent on the decisions of the Trustee – the right ones, and those that will lead to possible losses of funds.