Federal Agency for Education

State educational institution

Higher professional education

"St. Petersburg State

University of Engineering and Economics"

Department of Finance and Banking

Discipline report

Stocks and bods market

"Investment companies, their role and functions in the securities market"

Completed by: Gaman E.A.

3rd year student, study period 4 years 9 months

group no. 3341 record book no. 33371/04

specialty 060400 - Finance and credit

Lecturer: Matveeva N.S.

Job title:

Grade: ________________ Date: ______________________

Signature: __________________________________________

St. Petersburg 2007

INTRODUCTION

Investment institutions are professional participants in the securities market that carry out their activities with securities as an exclusive one.

It is investment institutions that are the financial intermediaries that launch the mechanism of the stock market, redistribute monetary resources from those who have money to those who need additional financial resources for the implementation of commercial projects.

Types of investment institutions: according to Russian law, they include: a) financial brokers, b) investment consultants, c) investment companies, d) investment funds.

An investment company - a professional participant in the securities market provides services under brokerage agreements and trust management agreements. The clients of the organization are legal entities and individuals.

Unlike a financial broker, this is a dealer, i.e. a legal entity operating on the securities market not at the expense of the client, but at its own expense. An investment company is a specialized enterprise for: a) organizing and guaranteeing the issue of securities, b) investing in securities, c) buying and selling securities as a dealer.

In Russian practice, a kind of substitution of concepts took place. What we call an investment company is, in American practice, an investment bank. What we call an investment fund is considered an investment company in the practice of the United States and other countries.

On the other hand, in Russian practice, they often try to call an investment bank - a financial company that raises funds by issuing shares or in other ways and invests them in a variety of objects - from securities, real estate, land, shares in various companies to joint venture agreements and art objects.

An investment company is an association (corporation) that invests capital through direct and portfolio investments and performs some functions of commercial banks. Investment companies are represented by holding companies, financial groups and financial companies.

A holding company is a parent company that owns a controlling stake in other joint-stock companies, called subsidiaries, and specializes in management. Financial holding company is a company, more than 50% of the capital of which consists of securities of other issuers and other financial assets.

This company has the right to carry out exclusively investment activities. A financial group is an association of enterprises connected into a single whole, but, unlike a holding, does not have a parent company specializing in management.

A financial company is a corporation that finances a narrow circle of other corporations selected according to some criterion and does not diversify investments typical of other companies, and, unlike a holding company, does not have controlling stakes in the corporations it finances.

INVESTMENT COMPANY ACTIVITIES

An investment company (in the Russian sense) has a specific turnover of funds. Its structure (the main articles are shown) explains well how it works and what is the main subject of its activity.

So, the main subject of activity of an investment company (in the Russian sense) is to determine the conditions and prepare new issues of securities, purchase them from issuers in order to then resell the securities to investors, guarantee placement, create syndicates by subscription or groups for the sale of new issues . However, just as in Western practice, the activity of an investment company cannot be limited to this. Investors are interested in maintaining an active secondary market for newly issued securities. Therefore, an investment company may retain a part of the issue for active trading in the secondary market as a "layout maker" (an investment company also has the right to work as a financial broker through a trading exchange).

At the same time, transactions with securities should be the exclusive activity of Russian investment companies.

The emergence of the first Russian investment companies

In Russia since the middle of 1991. - 1992 there were several large financial structures (VPIK - military-industrial investment company, RINAKO - Russian Investment Joint-Stock Company, NIPEC - People's Oil Investment and Production Eurasian Corporation, etc.). At the time of their formation, they collected significant monetary capital for that time (0.8 - 1.2 billion rubles), which in the highly inflationary environment of 1992. (inflation 2500-2600% per year), with a delay until the end of the year of large-scale privatization and a deep crisis during this period, the Russian securities market turned into a rapidly depreciating (25-26 times a year) paper money supply.

The structure of assets and operations of investment companies did not fully meet the requirements for these financial institutions, imposed by Russian law, as participants in the securities market. The fact is that both according to the original plan and due to inflationary necessity, these companies had to invest their money not only in securities, but also to make direct cash investments in real estate, in the capital of operating enterprises, and to a greater extent in short-term commercial projects.

Even such a strategy did not lead to tangible results: according to the results of 1992. NIPEC and RINACO did not pay dividends, having capitalized them (the possible level did not exceed 50-100% with inflation rates in 1992 of 2500-2600%), VPRP payments on dividends amounted to 8-55% for various categories of shareholders. 10-30% of investment capital companies in 1992. invested in joint ventures, 20-50% was put into trading operations, a certain part was invested in real estate, art, etc.

Thus, the first structures that called themselves investment companies as operating on the Russian market were not, by the nature of their activities, professional participants in the securities market and did not comply with the legal conditions established for them by Russian legislation.

On the other hand, since 1993 a group of professional financial intermediaries that were licensed to operate as investment companies was rapidly growing on the Russian market. By the end of 1994, 94% of professional participants in the stock market had such licenses (the absolute majority of them were combined with licenses of a financial broker and investment consultant, approximately 4% were purely investment companies).

Features of the investment company in comparison with other investment institutions.

In domestic practice, a model has been chosen for the simultaneous participation of banks, brokerage companies, investment companies and funds in professional activities in the securities market. At the same time, banks, in terms of their rights, financial base (size of capital, diversification of assets and operations with them), staffing and material support, are a completely unique participant in this market. At the same time, transactions with securities are not the main ones for banks, and they largely lose the advantages of specialization.

Since banks and investment companies perform the same type of operations in the securities market, competition for shares of this market should unfold between them.

Banks in this competition have advantages. On their side are factors such as:

a) greater financial reliability and stability, diversification of activities (transactions with securities are not exclusive);

b) great opportunities in guaranteeing the placement of securities;

c) comprehensive settlement and cash services for transactions with securities and other transactions.

The emergence of investment companies with significant authorized capital, introduced since the beginning of 1994. restrictions on banking transactions with securities, may to a large extent weakened these advantages of banks.

Underwriting is the basic function of an investment company.

Underwriting (in the sense adopted in the stock market) is the purchase or guarantee of the purchase of securities at their initial placement for sale to the public.

Underwriter (in the meaning accepted in the stock market) - an investment institution or a group of them, serving and guaranteeing the initial placement of securities, carrying out their purchase for subsequent resale to private investors. In this capacity, he assumes the risks associated with non-placement of securities.

Thus, securities underwriting (a term accepted everywhere in international practice) is the main task, the main function of an investment company, as defined by Russian legislative acts.

The functions of an investment company as an underwriter, universally accepted in international practice, are reflected in the following diagram:

INVESTMENT COMPANIES ON THE RUSSIAN SECURITIES MARKET

The largest Russian investment companies

KIT Finance is an independent Russian investment bank providing investment banking and financial services to companies, financial institutions and private investors.

KIT Finance is one of the leaders in the market of organization, placement and circulation of bonded loans, acting as a lead arranger, underwriter and market maker, paying agent, legal and investment consultant. KIT Finance is the organizer of sub-federal, municipal and corporate ruble bond issues, as well as issues of foreign currency debt instruments.

The brokerage business of KIT Finance is represented by KIT Finance (LLC), which conducts operations on the securities market for the benefit of the Group's companies, professional participants and individual investors. KIT Finance is focused on working with financial institutions, is accredited on all major trading floors and works with all exchange instruments. At the moment, KIT Finance is one of the largest brokers in Russia.

KIT Finance has many years of experience in asset management, which is carried out by the management company KIT Finance (OJSC). KIT Finance provides investment and strategic development services to Russian and foreign corporations, financial and industrial groups and government agencies. The range of services provided by the Bank includes the organization of mergers and acquisitions (M&A), privatization transactions, attraction of investments, project financing, leveraged buy-out and management buy-out, restructuring and pre-sale preparation of enterprises, creation of joint ventures. KIT Finance provides banking services to clients as part of the provision of a full range of investment banking services, which improves the quality and creates comfortable conditions for customer service. The banking business of KIT Finance includes settlement and cash services, lending and raising funds from customers, Internet acquiring, development of correspondent relations with partner banks, etc.

The group includes an investment bank (KIT Finance Investment Bank (OJSC)), a brokerage company (KIT Finance (OOO)), a management company (KIT Finance (OJSC)), a leasing company, a non-state pension fund KIT Finance, as well as a subsidiary European investment company and management company in Kazakhstan.

Assets under management - more than 13.5 billion rubles

The Bank's equity capital is 5.8 billion rubles (according to IFRS).

The Bank's balance sheet currency is over 35.3 billion rubles (according to IFRS)

Net profit of the Bank - more than 3 billion rubles (according to IFRS)

BrokerCreditService Company LLC has been operating since 1995 and holds a leading position in the Russian stock market. The company provides the following services: Internet trading, asset management, information and analytical support and financial consulting. According to the rating of the National Association of Stock Market Participants (NAUFOR), the Company "BrokerCreditService" has an individual reliability rating of "AA +" (very high reliability - the first level.

record highs in terms of turnover* (according to the results of 2006, the company's turnover will amount to 330 billion dollars)

largest customer base*

the most developed branch network

The group of companies "BrokerCreditService" includes: CJSC "Management Company BrokerCreditService" (asset management of mutual funds, non-state pension funds, pension savings of Russian citizens); BCS Consulting LLC (providing financial consulting services, primarily in the field of attracting investments in the development of Russian enterprises, as well as financial management, in the field of mergers and acquisitions, tax planning and business development); BrokerCreditService (Cyprus) Limited (broker licensed in the European Union; activities: the company provides a wide range of services in the European Union, including operations with various types of financial instruments - brokerage services, custody of securities and custodial services, provision of loans for securities transactions , consulting); Specialized depository LLC "MSD BCS" (activities: accounting and storage of property, as well as rights to securities of mutual funds and non-state pension funds, depositary services, maintaining registers of mutual fund shareholders); NPF "Russian Pension Fund" (activities: management of the funded part of the pension of citizens of the Russian Federation, voluntary pension insurance of citizens of the Russian Federation); IC "BASTRA" (activity: the company has a license for 35 types of insurance and provides a wide range of services in the insurance market of Russia); "BCS-IT" (activity: a wide range of software development services).

According to the results of 2005, the total turnover amounted to 3.22 billion rubles, and the number of the company's clients was 16,328.

Trends in the activity of investment companies in the securities market

Recently, there has been an increase in trading volumes of investment companies: both stock quotes and the number of clients of brokerage companies have been growing rapidly. As a result, the aggregate turnover of investment companies in all types of securities in the first half of 2006 amounted to 24.4 trillion rubles, which is 1.75 times more than in 2005. At the same time, the structure of the total turnovers of professional participants in the stock market looks like this: about 52% are exchange turnovers, and 48% - over-the-counter. That is, the total turnover on the exchanges for the first time in many years exceeded the turnover of the over-the-counter market.

There are several reasons for this. Leading exchanges have been doing a lot lately to attract companies to their trading floors and increase their activity. As a result, many investment companies that previously worked as sub-brokers* entered the exchanges directly and joined the ranks of participants in the organized market. This is due to the fact that the price of entering the stock exchange has decreased significantly in recent years, and the former sub-brokers themselves have reached a new level. Next year, this trend should intensify in connection with the regulation on the reporting of professional participants in over-the-counter transactions being developed by the FFMS. It is planned that from the middle of next year, exchanges will charge a fee for disclosing such information. And in this case, it will simply be cheaper for brokers to conduct transactions through the exchange.

The reduction in the over-the-counter sector was facilitated by a significant reduction in transactions with bills. At the same time, for companies that disclosed their data, the volume of transactions with promissory notes decreased by 10%. The value is small, within the measurement error. Nevertheless, there is a trend. If about three years ago almost every investment company made transactions with promissory notes in one volume or another, now the circle of promissory note operators has significantly decreased. And many leaders in this area are increasingly reorienting to bonds and stocks.

At the same time, the volume of trading in shares among companies that disclosed their data increased 2.5 times, and in bonds - 1.8 times.

IC "BrokerCreditService" (BCS) keeps the leadership with a constantly increasing margin. The volume of BCS transactions with securities amounted to 5.3 trillion rubles, almost the same as the companies that took second or third place - KIT Finance and Troika Dialog Group. At the same time, BCS and KIT Finance tripled their figures compared to the same period last year. Of the companies in the top ten, the Group of Companies "Region" distinguished itself with the same activity.

A number of large companies also showed growth, but their results were lower than the market average. Some companies (Uralsib Capital, Renaissance Group, IFC Metropol) even showed a decrease in turnover in the growing market. But there are also frank failures, when there was a drop in turnover by two or three times. This was partly due to the decline in bond turnover, but stock-oriented companies also experienced the same setbacks. This confirms the fact that the brokerage market remains highly competitive. And the position of market leaders cannot be considered unambiguously stable.

It should be noted that the total volume of brokerage operations in the first half of 2006 amounted to 21.2 trillion rubles, which is almost seven times more than the volume of dealer operations. Compared to the results of 2005, the gap between brokerage and dealer operations has widened. Companies increasingly prefer client operations to their own, thereby minimizing their market risks.

The increase in the volume of brokerage operations is also associated with an increase in the number of clients. Thus, for companies that disclosed their data, the total number of clients in the first half of the year compared to the same period last year increased by 1.8 times, exceeding 101,000. Almost 90,000 of them are individuals. At the same time, in the second quarter of 2006, about 20 thousand clients were added, almost 90% of which were individuals. These figures - taking into account the overall growth of the market - indicate that a mass investor has entered the market, although he still cannot ensure the growth of gross indicators.

CONCLUSION

So, investment institutions are professional participants in the securities market, carrying out their activities with securities as an exclusive one.

The main activity of an investment company is to determine the conditions and prepare new issues of securities, purchase them from issuers in order to then resell the securities to investors, guarantee placement, create syndicates by subscription or groups for the sale of new issues. Underwriting is the basic function of an investment company. Underwriting (in the sense adopted in the stock market) is the purchase or guarantee of the purchase of securities at their initial placement for sale to the public.

If we turn to the history of the emergence of investment companies, the first structures that called themselves investment companies as operating on the Russian market were not, by the nature of their activities, professional participants in the securities market and did not meet the legal conditions established for them by Russian legislation. And only much later did investment companies appear, in the full sense of the word.

Since banks and investment companies perform the same type of operations in the securities market, therefore, competition for shares of this market should unfold between them.

The leaders of the Russian securities market are such investment companies as IC BrokerCreditService (BCS) (the volume of BCS transactions with securities amounted to 5.3 trillion rubles), KIT Finance and Troika Dialog Group. If we talk about trends in the activity of investment companies, we can note the following:

slightly more than half of the turnover of investment companies is accounted for by stock exchanges;

the tendency to decrease in volumes of transactions with bills is found out;

the volume of brokerage operations exceeds the volume of dealer operations.

BIBLIOGRAPHY

1. Federal Law No. 39-FZ of April 22, 1996 "On the Securities Market"

2. Makarova S.A. Securities market and exchange business. - St. Petersburg: SpecLit, 2002.

3. Mirkin Ya.I. Securities and the stock market - M., Perspektiva Publishing House, 2000.

4. Golovtsov A., Gaidaev V. Mass involvement. // Kommersant-Money-2006.10. - P.15.

5. www. cit-funds. en

*Subbrokers provide brokerage services to their clients through a broker. The sub-broker does not have direct access to the exchange. The sub-broker provides clients with Internet trading services, which are provided by the broker. A sub-broker is a professional participant in the stock market, in turn, he himself is a client of the broker. Modern Internet trading technology allows you to build the following scheme of work: client - sub-broker - broker - exchange.

Good afternoon, dear reader!

I continue the story about the structure of the securities market and its participants. Certain structures are involved in this process, about which one can talk a lot and for a long time. Today I want to discuss who are investors in the securities market and what are their functions. So we start.

In short, investors are a group of persons (legal companies, credit institutions, mutual funds) or an individual who buys or owns securities on the basis of ownership rights. The trading process may involve borrowed or own money. The definition of investors also includes traders involved in trading in the market.

An investor tries to profitably invest money in securities in order to receive a good profit in the future.

Classification

Investors are classified into several types:

• for the purpose of investing in securities - strategic, portfolio;
• according to the degree of risk - conservative, moderately aggressive, aggressive, sophisticated, irrational;
• at the location - a resident investor and a non-resident;
• by status - individual, collective, corporate, state.

In order to understand, depending on what they are divided into groups, I propose to consider each classification in more detail.

By investment purpose

Portfolio and strategic market participants differ in the goals and methods of investment.

Strategic

The main goal of a strategic investor is to obtain a controlling stake in order to acquire ownership of the enterprise in the future. The income from this form of ownership is much greater than from ordinary paper ownership. Initially acquires a 30% stake, then becomes the sole owner of a controlling stake.

Portfolio

The tasks of a portfolio participant in the securities market include the formation of a profitable investment portfolio and its further management. He does not need control of the company. All a portfolio investor needs is to earn a return on stocks.

By degree of risk

Each investor behaves differently in the market. In this regard, there are several strategies of behavior.

Conservative

This market participant sets the main goal of the reliability of investments. For him, it is important not so much to get a lot of capital, but to save money. The object of investment is reliable and liquid assets, for example, shares of large enterprises (Gazprom, VTB). Investments are long-term, from 2 to 20 years. Such a passive strategy is appropriate in times of crisis.

Moderately aggressive

The investor tries to maintain a balance in the investment portfolio, for which he combines different securities with varying degrees of profitability and reliability. Prefers to save investments, but at the same time get the maximum income. Investment term from six months to several years. Moderate-aggressive type is an average profit and low risks.

Aggressive

This participant is a man with iron nerves. It doesn’t matter if the investment is reliable or not, the main thing is profitability. As a rule, these are traders whose investment period is from several minutes to a couple of days. Big risks, but also high income - sometimes up to 400% of net profit per month.

Sophisticated

A sophisticated participant in the financial system aims to get the maximum income. First they are aggressors, then conservatives, constantly changing roles. Even if there is a clear threat of capital loss, they still take risks in order to get the maximum profit.

Irrational

The most obscure type of investor. He does not have a clear goal, he does not know what income he wants to receive, what risks he is ready to take. Randomly buys a large number of securities of different enterprises for any period. Absolutely not amenable to logic, does not make informed decisions.

By location

Investors are divided into categories of residents and non-residents.

Residents

A resident is a natural or legal person who is registered in the territory of a certain state. It is fully subject to the legislative framework of this country.

non-resident

A non-resident may be an individual or a legal entity. It operates in the territory of one state, but is registered and resides in the territory of another.

By status

A participant in the securities market can be either one person or a group of people. Depending on this, investors are divided into several types.

Individuals

Only private funds are invested, the volume of capital investments is small. They make decisions on their own, based on their own ideas about the movement.

Collective

Collective investors are a group of people, such as insurance companies, mutual funds. They pool the money of small depositors and go public with large sums. The capital is managed by qualified managers with experience and knowledge, which helps shareholders outplay individuals.

Corporate

This group is represented by large and small non-state companies and firms investing free money in securities. Investing for them is not the main income, but additional.

State

The state, as a rule, does not invest in securities. On the contrary, it issues its own to finance the budget deficit.

The main problems of the Russian securities market and ways to solve them

The Russian securities market faces the following problems:

• the legal system cannot protect all participants in the transaction;
• small share of real capital;
• accounting norms and rules do not comply with international standards;
• there is no single system that would ensure the efficient functioning of the market.

Our market is unattractive for foreign companies.

To solve problems, it is necessary to create a single central depository, in which actions will be unified. We have many depositories with their own rules, the user must choose one. Due to the number of depositories, the transparency and availability of information is reduced.

It is necessary to revise tax legislation: introduce preferential rates, adjust legislation regarding the taxation of fast transactions. These measures will significantly increase the stability of the Russian financial market as a whole.

Conclusion

So you have learned who investors are in the securities market, how they are classified and what problems the Russian market faces. If you liked the material, leave comments and share the article on social networks. See you soon!

Only professional participants in the securities market can engage in activities on the stock market, their activities are related to the circulation and placement of the purchase and sale of securities.

Professional participants of the securities market:

• - establish a relationship between issuers and investors;
• - form the securities market, providing supply from issuers and demand from investors, as well as distribute and mitigate financial risks;
• - ensure the stability of the securities market and the economy as a whole, reducing price fluctuations;
• - participate in the formation and improvement of the investment climate in the country. Moreover, their lack of development can become a brake on the economy. Reform in the provision of infrastructure services is an important element in facilitating investment and enhancing Russia's economic growth opportunities.

Professional participants in the securities market are legal entities that carry out the following activities:

• 1) brokerage activities;
• 2) dealer activity;
• 3) securities management activities;
• 4) activities to determine mutual obligations (clearing);
• 5) activity on maintenance of the register of holders of securities;
• 6) depository activities;
• 7) activities for the organization of trading in securities.

This list can only be changed by law. Professional participants in the securities market may not combine their activities with other activities not related to the securities market. All types of professional activity in the securities market are carried out on the basis of a special permit - a license issued by the Federal Financial Markets Service. In accordance with part four of Article 39 of the Federal Law “On the Securities Market”, the activities of professional participants in the securities market are licensed by three types of licenses:

• 1) a license of a professional participant in the securities market;
• 2) stock exchange license;
• 3) a license to carry out the activities of maintaining the register.

The procedure for licensing establishes that a license to carry out professional activities is issued without limitation of validity. However, an applicant who previously did not have a license to carry out professional activities in the securities market is issued a license for a period of 3 years.

A professional participant, if he intends to continue his professional activities in the securities market, is obliged to apply for an extension of the license no later than 60 days before its expiration.

Investment company - a legal entity whose permanent activity is the provision of one or more investment services to third parties and / or the implementation of one or more types of investment activities on a professional basis. Let us briefly characterize the types of professional activities that investment companies can carry out.

Brokerage activity is the activity of making civil law transactions with securities on behalf of and at the expense of the client (including the issuer of emissive securities when they are placed) or on their own behalf and at the expense of the client on the basis of reimbursable agreements with the client. A professional participant in the securities market engaged in brokerage activities is called a broker.

Dealer activity - the execution by the bank of securities purchase and sale transactions on its own behalf and at its own expense by publicly announcing the purchase and sale prices of securities with the obligation to complete these transactions at the prices declared by it.

When carrying out brokerage and dealer activities in the securities market, professional participants are required to:

• 1) fulfill in good faith obligations under contracts for the sale and purchase of securities and other contracts directly related to the performance of professional activities in the securities market;
• 2) bring to the attention of clients and counterparties everything necessary, related to the fulfillment of obligations under the securities purchase and sale agreement;
• 3) not to manipulate prices on the securities market.

Price manipulation refers to the actions of a broker or dealer who is a bidder, i.e. having the right, in accordance with the rules of the trade organizer, to announce orders and make transactions with securities and financial instruments, including the announcement of orders for transactions with securities and / or financial instruments, the parties to which are the same person who led or could lead to destabilization of the securities markets and/or financial instruments, including changes in bid and offer prices, or the number of orders not caused by objective events affecting the securities market;

• 4) disclose information about their transactions with securities in the cases and in the manner prescribed by the legislation of the Russian Federation on the securities market;
• 5) make transactions of purchase and sale of securities on behalf of clients in a priority manner in relation to their own funds;
• 6) approve the rules for maintaining internal records of transactions with securities, including maintaining accounting registers and compiling internal reports.

One of the professional participants in the securities market are management companies, regardless of the specific legal form of their organization, but having a state license for securities management activities. Under the activity of management of securities is recognized the exercise by a legal entity on its own behalf for a fee for a certain period of trust management transferred to its possession and belonging to another person in the interests of this person or third parties indicated by this person:

• - securities;
• - cash intended for investment in securities;
• - cash and securities received in the course of securities management.

A professional participant in the securities market, carrying out securities management activities, is called a manager.

The trust management operations involve: the founders of the trust management (individuals or legal entities who have concluded a trust management agreement with the management company), the trust manager and the beneficiary (the person who receives income based on the results of management).

The economic meaning of the functioning of management companies and their activities in the securities market is that they provide:

• – better results from the management of clients' securities in comparison with the activities of the latter due to their professionalism;
• – lower costs for servicing transactions in the stock markets due to the scale of its activities;
• – efficiency of operations due to work simultaneously in many markets, in different countries.

The trustee may instruct another person to perform management activities on behalf of the trustee. The trustee is liable to the founder of the management and the beneficiary. In the event of losses, he compensates the founder of the management for losses, and the beneficiary - for lost profits.

Custody activity is the provision of services for the storage of certificates of securities and / or accounting and transfer of rights to securities. A professional participant in the securities market, carrying out depository activities, is called a depositary. Only a legal entity can be a depositary.

A necessary and obligatory condition for carrying out transactions with securities as a professional participant is the licensing of the activities of professional participants in the securities market. For this purpose, a licensing procedure has been developed and applied (including questions about the composition of documents submitted for obtaining a license; licensing requirements and conditions; the procedure for considering, issuing and refusing to issue licenses; suspending a license and canceling a license), regulated by the Decree of the Federal Commission for the Securities Market of November 23, 1998 . No. 50 and the order of the Federal Service for Financial Markets of March 16, 2005 No. No. 05-3/pz-n.

The requirements of the Regulations on the procedure for licensing various types of professional activities in the securities market of the Russian Federation apply to the conditions and procedure for issuing, suspending and revoking licenses for professional activities in the securities market, including professional activities with government securities, securities of constituent entities of the Russian Federation and municipalities.

Entry into the markets of professional participants in the securities market is limited by high requirements for license applicants and, subsequently, for the participants themselves. According to the Regulations on Licensing and other regulatory documents, all participants in the securities market must meet such requirements as compliance with a certain organizational and legal form, the amount of own funds (capital). The regulator establishes requirements for the level of qualification of specialists of these organizations, requirements for the provision of a registration form, requirements regarding the reporting of organizations - professional participants, restrictions are imposed on combining the professional activities of a market participant with other types of activities. As of July 1, 2006, according to the data of the Federal Financial Markets Service of Russia, 1,402 licenses for brokerage activities, 1,410 licenses for dealer activities, and 1,058 licenses for securities trust management were issued. In addition, according to the Bank of Russia, more than half (51.8%) of all Russian operating credit institutions were also professional participants in the securities market.

Also, investment companies can engage in non-professional activities in the securities market. There are the following types of non-professional activities of investment companies:

1) Information.

All information, including advertising brochures, addressed to existing or potential customers must be clear, genuine and not misleading. Advertising information should be easily recognized as such. Existing or potential clients should be provided with the following information in an understandable form:

• - description of the investment company and its services;
• - a description of the financial instruments and proposed investment strategies, including characteristics of the risks associated with investing in such instruments and/or with certain investment strategies;
• - description of the places of execution of transactions;
• - a description of the costs and fees charged.

Therefore, clients should be able to understand the nature and risks of the investment services offered and the particular financial instrument and subsequently make an informed investment decision. Such information may be provided in a standard format.

For example, the creation of the management company BCS was a logical step in expanding the business of the Brokercreditservice group of companies, which made it possible to expand the range of financial services and attract clients interested in professional money management. The close integration of BCS Management Company into the BrokerCreditService group of companies makes it possible to take full advantage of the group's advantages, such as advanced information technologies, high-quality brokerage services, as well as a wide branch network. High flexibility and manufacturability, as well as the introduction of advanced information technologies and a systematic approach to building a business, allowed the company to develop at a high pace and reach the highest positions in the ratings of professional participants. When making investment decisions, BrokerCreditService's clients can use the services of a personal financial advisor and the company's analytical service. "Financial Advisor" is a product that combines online contact with a company specialist who is constantly in the market, a wide range of analytical products and operational information You can get accurate recommendations in any market situation, at any time - how to act, what securities to buy / what to sell.Another important task of the "Financial Advisor" is to present investment ideas, in blue chips and in the second tier generated by the company's analysts.The service is intended both for those investors who independently monitor the situation on the market, and for those investors who do not have such an opportunity.

2) Consulting.

Investment advice - providing a personal recommendation to a client at his request or at the initiative of an investment company in relation to one or more transactions with financial instruments.

When providing investment advice or portfolio management services, the investment company receives the necessary information about the knowledge and experience of an existing or potential client in the field of investments, as well as a specific product or service, about the financial situation of the client and his investment goals, in order to be able to recommend investment services or financial instruments that meet the requirements of clients.

Zimin Vyacheslav Aleksandrovich Investment activity in the stock market

Investment activity is closely connected with the functioning of the capital market, which is also called the stock market. It represents the sphere of circulation of stock securities that create stock values ​​- money capital. Portfolio (financial) investments intended for the acquisition of these securities operate on this market. Mobilization of temporarily free funds and their investment in various activities are carried out through the circulation of securities on the stock market.

In the stock market, the subjects of investment activity are investment institutions, domestic and foreign individuals and legal entities.

Investment institutions in Russia are professional participants in the financial and stock market, engaged in attracting and accumulating financial resources for placement in the form of long-term investments and certain types of assets, ensuring the possibility of selling acquired assets for profit.

Investment institutions are legal entities in

any civil law form that carry out activities

in the securities market. Since 1991, there have been four main groups:

financial broker, investment company, investment fund,

investment consultant. The investment institution has the right

start business in any capacity after obtaining a license

Ministry of Finance of Russia. It is issued for separate types of activity or simultaneously for two or three types.

In accordance with the Decree of the President of the Russian Federation "On measures for state regulation of the securities market", since 1994 the following types of investment activities in the securities market have been regulated:

a) brokerage activity - making transactions with securities on the basis of an order and (or) commission agreements;

b) activities to organize trading in securities;

c) depositary activity;

d) settlement and clearing activities in cash;

e) dealer activity - the execution of securities purchase and sale transactions on one's own behalf and at one's own expense by publicly announcing the sale and purchase prices for securities at declared prices;

f) settlement and clearing activities in securities - determination of mutual obligations for the supply (transfer) of securities of participants in transactions with securities;

g) keeping the register of shareholders.

All these named types of activity could be carried out only by professional participants of the stock market and only on the basis of issued licenses.

In 1996, the Law "On the Securities Market" supplemented investment activities with another type - securities management activities, which consisted in the implementation of trust management of securities, funds intended for investment in securities, funds and securities received in securities management process. It is possible to fill certain positions in investment institutions only by employees who meet the

qualification requirements of the FCSM and having the relevant qualification certificates.

Legislative regulation of the activities of investment institutions is carried out by the Federal Commission for Securities and the Stock Market under the Government of the Russian Federation (FCSM) and the Central Bank of the Russian Federation. The activities of investment institutions are subject to mandatory licensing. It is carried out in accordance with the Law "On the Securities Market" in three types: a license of a professional participant in the securities market; a registrar's license and a stock exchange license.

The stock exchange belongs to the category of trade organizer. The legal status of stock exchanges is determined by the Federal Law "On the Securities Market". A stock exchange is understood to be an organization whose exclusive activity is to provide the necessary conditions for the normal circulation of securities, determine their market prices and properly disseminate information about them, and maintain the high professionalism of securities market participants.

The stock exchange is a non-profit organization, it does not pursue the goal of making a profit and is not entitled to pay income to its members. The income of the stock exchange is directed entirely to cover its expenses related to the expansion and improvement of its activities. These exchanges are established in the form of closed joint-stock companies. The activities of stock exchanges are subject to licensing.

Investment institutions in Russia can be roughly divided into two categories. The first category includes credit and financial institutions that mobilize long-term capital by issuing and placing debt obligations (shares) among investors, followed by the management of assets acquired with it, as well as accepting property in

trust management in order to ensure the growth of its value

through operations in the financial and stock markets. In accordance with the current legislation, this category includes united banking management funds (UFBU), mutual investment funds (UIF), companies licensed to carry out activities for the trust management of securities.

Since 1996, on the basis of the Decree of the President of the Russian Federation "On additional measures to improve the efficiency of the investment policy of the Russian Federation" (July 1995), the FCSM has adopted a package of documents regulating the activities of mutual funds. A unit investment fund sells shares to investors, the value of which changes according to the change in the value of the fund's assets. The investment activity of the Mutual Investment Fund is carried out by the management company of the Mutual Investment Fund, which has a license to conduct operations on trust management of the property of mutual investment funds. Depending on the statutory obligations for the frequency of redemption of shares, mutual funds are divided into open and interval. Mutual funds invest in certain types of assets, including real estate. There are restrictions on the maximum amount of assets of one issuer in the fund's portfolio and operations with certain types of assets, including industrial securities.

There are more than two hundred mutual funds operating in the Russian Federation with different amounts of capital and profitability. Table 1 shows the most successful mutual funds in terms of profitability at the beginning of 2014.

Top 20 most profitable mutual funds

Table 1 4

Name of fund Name of management company Share as of 31.08.2010 Share as of 30.08.2013 Growth, %

1. Raiffeisen - USA Raiffeisen Capital 8 202.46 14 156.51 72.59

2. Sberbank -Telecommunications Sberbank Asset Management 1,565.62 2,496.94 59.49

3. Nord Capital - Bonds of Nord Capital UK 1,055,328.21 1,605,118.29 52.10

4. Alfa Capital Neftegaz Alfa Capital 787.56 1 172.13 48.83

5. Maxwell Neftegaz Maxwell Capital Management 714.71 1,051.95 47.19

6. VTB - VTB Capital Telecommunication Fund Asset management 7.66 10.77 40.60

7. Petr Bagration Parma Management 28 151.62 39 371.27 39.85

8. Promsvyaz - Bonds Promsvyaz 1,815.23 2,537.11 39.77

9. Sberbank - Oil and gas sector Sberbank Asset Management 1,138.15 1,581.19 38.93

10. Alfa Capital High-tech Alfa Capital 932.86 1,278.54 37.06

11. TKB BNP Paribas - Russian Oil TKB BNP Paribas Investment Partners 2,774.30 3,772.49 35.98

12. Sberbank - Risk Bond Fund Sberbank Asset Management 1,732.84 2,352.63 35.77

13. BCS - Global Oil BrokerCreditService 1,320.78 1,785.24 35.17

14. VerbaCapital - Bonds of VerbaCapital 106.73 143.88 34.81

15. RGS - Neftegaz RGS Asset management 922.74 1,243.84 34.80

16. UralSib Fund Conservative UralSib 2 338.22 3 140.22 34.30

17. Interfin TELECOM Interfin Capital 4,169.67 5,596.64 34.22

18. VTB - Bond Fund plus VTB Capital Asset management 13.93 18.43 32.30

19. Volkhonka - Bond Fund of the Management Company of the Bank of Moscow 966.71 1,264.38 30.79

20. Sberbank - Ilya Muromets Bond Fund Sberbank Asset Management 17,806.45 23,256.45 30.61

These mutual funds controlled about 80% of the Russian market. The profitability of a mutual investment fund depends on the financial instruments in which its assets are placed.

Investing in mutual funds is a long-term project. Here, the minimum period before making a profit is one year, and with an increase in the term of investments in mutual funds, the potential profitability increases, since compound interest begins to work.

In our country, there are many different types of mutual funds, among which the main ones are: money and commodity market funds; Mutual investment funds of securities: bonds, stocks, mixed investments; real estate and mortgage funds; industry funds; credit and rental funds; index funds; venture funds; funds of artistic values.

Choosing mutual funds, you must first decide on the management company. It must be stable, reliable, have a positive experience in the market, hold the necessary amount of invested funds, and also have a good reputation.

The advantage of a mutual fund is the exemption from corporate taxes. In Russia, there is a significant number of interval mutual funds (funds that open for the purchase and redemption of a share only a certain number of times a year). These funds are required by law to invest depositors' money in low-liquidity securities. Investments in such securities are the most risky, as they are difficult to sell, but they bring solid profits in the long term. As of June 30, 2014, the value of net assets of mutual funds by types was in billion rubles: mixed - 85.2; shares - 77.9; bonds - 45.7; monetary - 2.6;

index - 2.3.

As the experience of recent years shows, in Russia the average term of investment in mutual funds is no more than eight months. It is more profitable for an investor to make investments if the stock market has been declining for a certain time than to acquire shares in a situation where the stock market has been constantly showing positive dynamics for several months. The best option for an investor, in our opinion, should be considered an installment plan by the investor of his investments. It is possible to buy shares for a certain amount every month after receiving wages. The shareholder, thus diversifying over time, can significantly reduce their risks.

On March 31, 2001, the Government of the Russian Federation approved the Regulation on Licensing the Activities of Specialized Depositories of Investment Funds and Mutual Investment Funds (No. 254) and the Regulation on Licensing Funds (No. 253).

Thus, the Regulation on Licensing the Activities of Investment Funds establishes the procedure for this licensing for legal entities, as well as licensing requirements and conditions, the fulfillment of which by the licensee is mandatory when carrying out investment activities.

In the activities of the united funds of banking management (UFBU), the trustee may be a credit institution, an individual entrepreneur or a commercial organization, with the exception of a unitary enterprise. OFBU is formed on a contractual basis from the property transferred to the trustee by the founder of management for a certain period, as well as the increase in property in the course of the implementation of trust management. Unlike a mutual fund, an OFBU can accept for trust management, in particular, derivative financial instruments owned by residents of the Russian Federation on the basis of ownership.

Investment companies are professional participants in the stock market, carrying out securities trading activities at their own expense (dealer activity) and operations with clients' securities and funds exclusively on behalf of clients (brokerage activity).

Banks can now also be classified as investment institutions, since the current legislation allows them to conduct operations with securities both at their own expense and using borrowed funds.

Investment activity is impossible without the creation of a structure that ensures the registration of property rights, accounting and storage of acquired assets. To ensure the registration of the rights of owners to the securities they have acquired in the structure of the stock market, there are holders of the register of shareholders (shareholders). The registry maintenance activity is carried out only by legal entities and is exclusive for them (i.e., cannot be combined with any other type of activity).

Depositary activity in the securities market involves the provision of services for accounting, storage and transfer of securities. In addition, depository companies can act as nominee holders of their clients' securities in shareholder registers, i.e. only one client appears in the register, in whose account there is a certain number of shares. When the clients of the depository conduct transactions of purchase and sale of securities in the nominal holding of the depository, the registration of the transfer of rights to securities occurs only using the accounts of nominal holding, without re-registration of the rights of the owners in the register, since the total amount of shares on the account of the nominal holder in the register does not change . Such operations are convenient for professional participants in the stock market, daily

conducting a large number of transactions for the purchase and sale of shares, since

re-registration of securities through nominee accounts takes much less time and its cost is much lower than the cost of similar services provided by registries.

The current legislation allows the combination of several types of activities by one professional participant in the stock market. Investment companies, subject to certain requirements, may obtain licenses to carry out several types of activities, including depository.

Investment activity in the stock market is diverse. Here, solid investors (banks, financial companies) usually implement large investment projects, or form an investment portfolio of several projects. The success of their investment activities largely depends on the reasonable distribution of investor funds by industry and asset types. The main criteria for evaluating investment projects are profit, return on investment index and risk.

Several companies or commercial firms can invest in the largest projects by creating a consortium (their temporary agreement on joint investment activities). The government of the Russian Federation sometimes participates in investment projects that are important from the point of view of national security and prestige.

Investing in general and in securities in particular requires a very serious analysis of investment projects. It should be carried out taking into account the economic situation in the country, the development of the sector of the economy (where the investment is made), as well as the enterprise whose shares are being acquired. The level of responsibility associated with the adoption of projects of investment volumes, respectively, 3 million rubles. and 3 billion rubles, different. Therefore, the depth of the analytical study of the project, which precedes the decision, should also be different.

In the developed countries of the world, the stock markets are seething with might and main: there is a lot of money spinning and working. In Russia, the corporate capital market began to revive in the early 2000s. Meanwhile, according to independent experts, every year the Russian economy “loses” billions of dollars in Western banks. Russia is moving too slowly towards the big powers.

Today, the specialists of the FCSM of Russia have prepared a detailed classification of violations of the rights of investors that take place on the Russian market. The country has a Coordinating Council for Corporate Governance. The state, by acquiring shares of a number of important enterprises, financing their development, supports socially significant priority sectors. It through the government securities market affects the volume of money supply, and also maintains the balance of the state budget.

Literature

1. See: Collection of Legislation of the Russian Federation. 1996. No. 17.

Subjects of the securities market

Topic 1. Concept, structure and participants of the securities market

The subjects of RZB are:

Issuers,

Private and institutional investors,

Professional participants of the RCB,

Self-regulatory organizations of professional market participants,

State bodies regulating RZB.

Issuer- a legal entity or state body that issues securities and bears on its own behalf an obligation on them to holders.

Investor- a legal or natural person acquiring securities on its own behalf and at its own expense.

Institutional investor- an organization that, by the nature of its activities, has a significant balance of temporarily free cash resources that are invested in securities:

Insurance companies;

pension funds;

Charitable foundations;

Investment companies;

Investment funds.

Professional members RZB are: financial brokers, dealers, depositories, registrars, settlement (clearing) organizations, trustees, organizers of trade.

Self-regulatory organization of professional participants of RZB is a membership-based non-profit organization established by professional participants of the RZB and operating under a license.

The objectives of the self-regulatory organization are:

Development and improvement of the system of functional regulation of the RZB;

Establishment of rules and standards for conducting operations with securities, ensuring efficient operation on the RZB;

Implementation of control and supervision over the activities of professional participants of the securities market;

Protecting the interests of securities holders and clients of professional RZB participants who are members of a self-regulatory organization;

Raising the standards of professional activity at the RZB, including standards of professional ethics;

Ensuring the conditions for professional activity at the RZB.

The number of members of a self-regulatory organization must be at least ten. Self-regulatory organizations carry out their activities on the basis of licenses. The license indicates the type of professional activity carried out by members of this self-regulatory organization.

Investment companies (funds)- a kind of financial institutions that accumulate investors' money by issuing their own securities (obligations) and placing them in the securities of other issuers.

The activity of an investment company is organizing the issuance of securities and issuing guarantees for their placement in favor of third parties, investing in securities, buying and selling securities on its own behalf and at its own expense, including by quoting securities (announcements for certain "ask price" and "buy price" securities at which the investment company undertakes to sell and buy them).

Investment companies form their resources only at the expense of their own funds (funds of the founders) and the issue of their own securities sold to legal entities. Investment companies do not have the right to form their attracted resources at the expense of the population.

Activity investment fund- this is the issue of shares in order to mobilize the funds of investors and their investment on behalf of the fund in securities, as well as in bank accounts and deposits. All risks associated with such investments, all income and losses from changes in the market valuation of such investments are fully borne by the owners (shareholders) of this fund and are realized by them by changing the current price of the fund's shares. These operations are the exclusive activity of the investment fund.

An investment fund can be formed in the form of a joint-stock or share fund.

Joint-stock investment funds in Russia were created on the basis of a regulatory framework adequate to the period of mass voucher privatization and the state of the stock market at that time. Currently, joint-stock investment funds are subject to the following requirements in accordance with the law. The activities of an investment fund may only be carried out by open joint-stock companies. The charter of an investment fund must contain:

The provision that the subject of his activity is investing in the securities indicated in his investment declaration or in securities and real estate and (or) rights to real estate;

An investment declaration that establishes the main directions, goals and limitations of the investment activity of the fund, the maximum shares of its property that can be invested in securities and real estate;

The procedure for attracting borrowed funds;

Prohibition to redeem their shares;

A ban on the issuance of other issue-grade securities, except for ordinary registered shares;

A ban on the implementation of activities other than investment;

Procedure, place and terms of payment of dividends.

The value of the assets of the investment fund must be at least 10,000 times the minimum wage.

According to the investment strategy, funds are also divided into two groups:

funds seeking to achieve control over joint-stock companies, having their representatives on the board of directors of enterprises actively participating in the management of enterprises. Quite often, such funds are members of financial and industrial groups;

funds that are portfolio investors of speculative orientation. Their portfolio is characterized by a high renewal rate and, accordingly, a larger share of highly liquid securities, some of which are oriented towards investments in government securities.

The rest of the funds, according to their investment strategy, are a combination of the above two groups.

There are two types of investment funds:

Closed;

Open.

Closed investment fund, in which funds are accumulated due to the placement at the time of the creation of the fund of common and preferred shares among a certain circle of investors. A closed-end investment fund has a fixed share capital, provides current income to shareholders and is not required to buy back shares until liquidation.

Open investment fund. Created by issuing ordinary shares. The share capital of the fund is not fixed, i.e. an additional issue of shares may be carried out, the shares of such a fund are freely bought and sold at prices corresponding to the current market value of the assets (such funds are also called joint, mutual).

A variety of an open investment fund is a mutual investment fund (UIF), the subject of which is trust management of the property constituting the fund.

The PIF model in Russia was developed using the experience of the so-called. contract investment funds common in Austria, Germany, Switzerland. The scheme of their activities:

1) the fund manager enters into a permanent agreement with clients on the management of attracted financial resources;

2) the contract is accompanied by the issuance of "certificates with cash value" (face-amount certifikation). The certificate specifies the face value equivalent to the value of the invested capital, the term of the management contract, the management conditions, the procedure for redeeming the certificate, paying income on it;

3) the agreement between the manager and the depositor is registered with the depository, which controls the use of funds by the manager, the direction of investments, and settlements with clients.

According to the same scheme, entrepreneurial trusts are created, common in the United States (business trust).

The legal basis for the functioning of such funds in Russia has been formed since 1995. According to Russian legislation, a mutual fund is a set of property transferred by investors to the trust management of a management company in order to increase this property, income from trust management of property is attributed to the increase in property. Trust management of the property constituting the fund is carried out by the fund manager (management company).

Mutual investment fund is based on the concept of share ownership. A fund contributor can be a legal or natural person. By joining the fund, the investor acquires an "investment share" and becomes a co-owner of the fund. Investment share- a registered security certifying the right of its owner to submit a redemption demand to the management company. The issue of investment shares is subject to mandatory state registration.

The activity of the fund manager is determined by the following basic rights and obligations:

The right to alienate and pledge property constituting the fund;

Act on their own behalf in the interests of investment unit holders;

The obligation to redeem investment units of the fund at the request of their owners.

In accordance with Russian legislation, mutual funds can be created in two main forms:

Open;

Interval.

The manager of an open mutual fund has the right to invest funds in the following assets:

Cash, including in bank accounts and deposits;

Government securities of the Russian Federation;

Securities of subjects of the Russian Federation;

Securities of Russian local authorities (municipal securities);

Securities of foreign states;

Securities of foreign commercial organizations (shares and bonds);

Securities of Russian JSCs of open type (shares and bonds).

The manager of such a fund is obliged to redeem investment units within a period not exceeding 15 working days from the moment the investor submits a redemption request.

The manager of an interval mutual fund has the right to invest funds(in addition to the above assets) in real estate and securities of Russian closed joint-stock companies that do not have recognized quotations.

The management company of such a fund determines the frequency (intervals) of redemption of investment shares of investors (at least once a year).

In order to ensure the liquidity of the assets of mutual investment funds, restrictions on their structure are envisaged. These restrictions include:

1. Limiting the share of the value of securities of one issuer in the total value of assets or the share of total assets of the fund placed in one type of assets;

2. Restriction on the proportion of securities of one issuer in the issued share capital of this issuer;

3. Restriction on the presence of quoted and unquoted securities in the fund's portfolio;

4. Restrictions on the presence of certain types of assets in the portfolio.

The main difference between a mutual fund and a stock fund consists in the fact that the increase in the property of the fund (obtained as a result of trust management) is not distributed among the owners of shares in the form of dividends, but is used to increase the value of the share. Thus, when selling shares, mutual fund investors receive a profit equal to the difference between the sale and purchase prices of a share, the current price of a share is determined by the manager based on an estimate of the value of the fund's net assets.

The value of the net assets of an open mutual fund is determined by the management company on a daily basis at the end of the working day. The value of the net assets of an interval unit investment fund is determined by the management company on the day preceding the day of the start of the next deadline for accepting applications for the acquisition and redemption of fund units.

The composition of the assets of the mutual investment fund, taken into account when determining the value of net assets, includes:

Financial investments (securities);

deposits;

Cash;

Settlements with debtors.

Liabilities taken into account in determining the net asset value of a fund include:

Settlements with creditors;

Reserves for future expenses and payments (amounts reserved as remuneration for the manager, specialized depository, registrar, independent appraiser and auditor, other expenses associated with trust management).