17. Securities market

Security market is an economic institute that deal with security. Shows interconnected between sallers and buyers.

Econ. Agent can:

-to buy and sell securities

- to transfer real assets into financ.

- to invest money in long term project, receive profit.

Functions:

1. Commercisal

2. Informative

3. Regulation –creates a rules of trade.

Levels of market: Primary (Is a part of the capital markets that deals with the issue of new securities. The process of selling a new assues to investors is called underwriting) Secondary (also known as aftermarket, where nearly issued securities are bought and sold. Stock Exchange.)

3. Business

Business is the organization designed to provide goods and services, or both to the customers. The goal of the business activity is to receive the profit and satisfy customers needs. Business may be owned by government or privately-owned. One definition of business is the production, distribution, and sale of goods and services for a profit.

Business is a combination of all these activities: production, distribution and sale. A major goal in the functioning of an business company is making a profit. Profit is the money that remains after all the expenses are paid.

A business may be privately owned in three different forms. These forms are: the sole proprietorship, the partnership and the corporation.

The sole proprietorship is a for-profit business owned by one person and may to employ other. Is the simplest organizational form. First of all they are services industries, such as beauty shops, different repair shops, restaurants. The owner of the business has unlimited liability for the debts incurred by the business.

A partnership is for-profit business owned by two or more people. When the owners of the partnership have unlimited liability, they are called general partners. And limited liability partnership.

The advantages of this form are obvious: it can provide a big capital, diversified management, tax benefits from the government.

A business corporation is limited liability business that has a separate legal personality from its members. It is operated by individuals. Corporation can be either privately-owned or government-owned, and privately-owned corporation can organize for-profit or non-for-profit. A person who owns a stock certificate is called a stock-holder. The advantages of this form are the following:

1) the ability to attract financial resources;

2) the possibility to invest the capital in plants, equipment and research;

3) the possibility to offer higher salaries and attract talented managers and specialists.

Cooperative is a limited liability business that can organize for-profit or non-profit. A for-profit cooperative differs from a for-profit corporation in that it has members, as opposed to shareholder, who share decision making authority.

Forms: agriculture- extraction, business, information, service, manufacture, real estate