There are different approaches to interpreting the concept "financial instrument". In its most general form, a financial instrument is understood as any contract (agreement) under which there is a simultaneous increase in the financial assets of one enterprise and the financial liabilities of another enterprise. In our course we will consider only the tools available to individuals - individual citizens. In this case, the wording will look like this: financial instruments are negotiable financial documents with the help of which transactions are carried out between you (an individual) and another person (individual or legal) on the financial market. In practice, this means that you did not just transfer cash from hand to hand (which also has its own risks and security measures), but carried out the transaction through official market participants (banks, payment systems), documenting it.

1.1. Classification of financial instruments.

The entire variety of financial instruments can be classified according to certain qualities. The main one is the market in which they operate or, as financiers say, trade.

1.1.1 Classification by financial markets.

• Credit market instruments– this is money and payment documents (this includes bank cards, which we will talk about in more detail in Section 2);
• Tools fundnew market– various securities;
• Foreign exchange market instruments– foreign currency, settlement currency documents, as well as certain types of securities;
• Insurance market instruments– insurance services;
• Precious metals market– gold (silver, platinum), purchased to form reserves.

1.1.2. Based on the type of circulation, the following types of financial instruments are distinguished:

• Short term(circulation period up to one year). They are the most numerous and serve operations on the money market.
• Long-term(circulation period more than one year). These also include “perpetual” loans, the repayment period of which is not set. They service operations on the capital market (we will not consider these).

1.1.3. Based on the nature of financial liabilities, financial instruments are divided into the following types:

• Instruments for which no subsequent financial obligations arise (instruments without subsequent financial obligations). They are, as a rule, the subject of the financial transaction itself and, when transferred to the buyer, do not incur additional financial obligations on the part of the seller (for example, the sale of foreign currency for rubles, the sale of a gold bar, etc.).
• Debt financial instruments . These instruments characterize credit economic relations between various legal entities and individuals that arise when transferring value (money or things defined by generic characteristics) on the terms of return or deferred payment, usually with the payment of interest. Depending on the object of lending - commodity capital or money - there are two main forms of credit: commercial (commodity) and bank. relations between their buyer and seller and oblige the debtor to repay their nominal value within the stipulated time frame and pay additional remuneration in the form of interest (if it is not part of the redeemable nominal value of the debt financial instrument). An example of debt financial instruments are bonds (Latin obligatio - obligation) - a security issued by joint-stock companies and the state as a debt obligation. O. confirms that its owner contributed funds to purchase the security and thereby has the right to present it for payment as a debt obligation, which the organization that issued O. is obliged to reimburse at the nominal value indicated on it. This compensation is called repayment. O. differs from a share (see) in that its owner is not a member of the joint-stock company and does not have voting rights. In addition to the redemption during the period predetermined upon the issue of the O., the issuer is obliged to pay its owner a fixed percentage of the nominal value of the O., or income in the form of winnings or payment of coupons for the O., bills (German: Wechsel - exchange) - a written promissory note of a strictly established by law, a form issued by the borrower (issuer of the bill) to the creditor (holder of the bill), granting the latter an unconditional, legally supported right to demand from the borrower payment by a certain date the amount of money specified in the V.V. are: simple; transferable (draft); commercial, issued by the borrower against the security of goods; banking cards issued by banks of a given country to their foreign correspondents (foreign banks); treasury bills issued by the government to cover its expenses. A simple V. certifies the obligation of the borrower, the drawer, to pay the lender, the holder of the bill, the debt due for repayment within the agreed period. A transitional bill, called a draft, is issued by the holder of the bill (drawer) in the form of a written order, an order to the maker of the bill (drawee) to pay the borrowed amount with interest to a third party (remittor). Thus, the remittor becomes the new holder of the bill. For example, the creditor Ivanov lent money to Sidorov, but transferred the bill received from Sidorov to the name of a third party - Mikhailov, to whom Sidorov must repay the debt. In this situation, Ivanov is the primary holder of the bill, drawer, Sidorov is the drawer, drawee, and Mikhailov is the secondary holder of the bill, remitee, checks (English, check, American check) - a monetary document containing an order from the owner of the current account to the bank to pay the amount specified in it to a specific person or bearer, or make non-cash payments for goods and services. Such a check operation is preliminarily provided for by the check agreement between the bank and the drawer. The bank can also pay the check as a loan to the drawer. There are several types of Ch.: bearer, registered and order. The bearer Ch. is issued to the bearer, its transfer is carried out by simple delivery. A personal name is issued to a specific person. A warrant is issued in favor of a specific person or on his order, i.e. the holder of a check can transfer it to a new owner by means of an endorsement, which performs functions similar to those of a bill of exchange endorsement. For settlements between banks, bank checks are used. and so on.
• Equity financial instruments. Such financial instruments confirm the right of their owner to a share in the authorized capital of their issuer - a credit organization (branch) that issues bank cards, securities or other negotiable financial instruments. and to receive appropriate income (in the form of dividends, interest, etc.). Equity financial instruments are, as a rule, securities of the corresponding types (shares, investment certificates, etc.)

1.1.4. Based on their priority importance, the following types of financial instruments are distinguished:

1.1.5. According to the guaranteed level of profitability, financial instruments are divided into the following types:

• Fixed income financial instruments. They have a guaranteed level of profitability upon their repayment (or during their circulation period) regardless of fluctuations in the financial market.
• Financial instruments with uncertain returns. The level of profitability of these instruments may change depending on the financial condition of the issuer (common shares, investment certificates) or in connection with changes in financial market conditions (debt financial instruments, with a floating interest rate “tied” to the established discount rate, the rate of a certain “fixed” foreign currency, etc.).

1.1.6. According to the level of risk, the following types of financial instruments are distinguished:

• Risk-free financial instruments. These usually include government short-term securities, short-term certificates of deposit from the most reliable banks, “hard” foreign currency, gold and other valuable metals purchased for a short period.
• Low-risk financial instruments. These include, as a rule, a group of short-term debt financial instruments serving the money market, the fulfillment of obligations under which is guaranteed by the stable financial condition and reliable reputation of the borrower (characterized by the term “first-class borrower”). Such instruments include checks and bills from large banks and government bonds.
• Financial instruments with a moderate level of risk. They characterize a group of financial instruments, the level of risk for which approximately corresponds to the market average. An example is the shares and bonds of large companies, the so-called “blue chips”.
• Financial instruments with a high level of risk. These include instruments whose risk level significantly exceeds the market average. These are shares of smaller and less stable companies.
• Financial instruments with a very high level of risk (“speculative”). Such financial instruments are characterized by the highest level of risk and are usually used to carry out the riskiest speculative transactions in the financial market. An example of such high-risk financial instruments are shares of “venture” (risky) enterprises; high-interest bonds issued by an enterprise with a financial crisis; option and futures contracts, etc.

The above classification reflects the division of financial instruments according to the most significant general characteristics. Each of the considered groups of financial instruments, in turn, is classified according to individual specific characteristics, reflecting the features of their issue, circulation and redemption.

Details of the description of each financial instrument can be found in specialized literature or on the Internet (for example,)

1.2 Risks and profitability. What can't happen without what?

Risk is a concept that characterizes the likelihood of some event that has a positive or negative impact on the expected result. As a rule, for private investors and depositors, only the risk of negative events is of interest, i.e. events affecting a decrease in income or even a refund. Therefore, to begin with, let’s build a visual graph, where we will mark the growth of profitability along the horizontal axis, and the growth of risks along the vertical axis. We deliberately do not depict the time axis, although we understand that the further in time the expected event is, the more factors can influence it, which means the risk increases.

Let’s remember the basic formula: “the higher the yield offered, the riskier the instrument.” This means that you can be promised an income of both 90% and 250% per annum, but the probability of this event (payment of income) will rapidly fall with the growth of promises. Whatever they say about reliable investments and promising projects, it will be like creating a “pyramid”, well known from MMM, where money is paid for a short time and not to everyone!

What conclusion should be drawn from this? There is no high income without the risk of losing part of the investment, and sometimes (as was the case during the crisis years) almost the entire amount. In Diagram 1, financial instruments are placed relative to each other in assessing profitability/risk. So deposits up to 700 thousand rubles. guaranteed to be returned by the state even if the bank goes bankrupt (it is possible that a new level of 1 million rubles will soon be set). Profitability by state The bonds are also guaranteed by the state, although I remember 1998, when the declared default canceled all guarantees.

Product Protocol is an open source protocol for crowdfunding/crowdlending campaigns based on digital asset issuance, integration with all business processes, fund management and financial transactions.

Please note that the cash in the scheme is placed with a negative return, but with a positive risk. The first is explained by inflation, which depreciates the value of your “non-working” money, the second is explained by the risks of losing it physically (stolen, chewed, burned...)

So what tools are available to you? It depends on what funds you have at your disposal (see Table 1). Let's assume that you fall into one of the categories - A (over 300 thousand rubles), B (from 100 to 300 thousand rubles), C (from 10 to 100 thousand rubles) and D (up to 10 thousand). rub.)

Table 1. Risk-return ratio for financial instruments.

what is possible	(over 300 thousand rubles)	(100 - 300 thousand rubles)	(10 - 100 thousand rubles)	(up to 10 thousand rubles)
stock trading		possible, but limited
mutual investment funds
investments in precious metals metals			yes, but dubious necessity
bank deposits
investments in foreign currency				Maybe
current deposit				Maybe
cash rubles				reality

If you belong to category A and B, then you should already know the addresses of brokerage companies and mutual funds. There you will be offered investments for every taste (i.e. risk and profitability). If you are a conservative investor, i.e. if you prefer reliability over the risk of losses, then you will be offered a portfolio of bonds (including government bonds) and, conversely, if you are a “risk player” and are ready to lose part of your investment, but at the same time have the opportunity to receive excess income, then You will be offered a portfolio of shares of fresh companies, a cocktail of currency futures, options to buy/sell oil, gold and other exchange commodities. I give yellow and orange colors conditionally, because... an investment portfolio can be formed in such a way that it is no more risky than a “green” dollar or extremely risky, like playing in a casino for “red”.

In the case when you belong to category B and D, it is better to maintain a conservative strategy and operate with tools colored green.

The concept of “credit” comes from the Latin word “creditum”, which means “loan, debt”. In the economic literature, credit is usually defined as a system of economic relations that arise in the process of providing money or other material resources by a lender for temporary use to a borrower on the terms of repayment, urgency and payment. If the provision of funds is irrevocable and open-ended, then it is called financing.

The forms of credit are closely related to the essence of credit relations. Depending on the loaned value, there are commodity, monetary and mixed (commodity-money) forms of credit. Depending on who is the creditor in the transaction, the main forms of credit are distinguished: commercial (economic), banking, consumer, state and international credit.

A commercial (business) loan is a loan provided by supplier enterprises to buyer enterprises through deferred payment for goods sold, or by buyers to sellers in the form of an advance or prepayment for goods supplied. As a result, a business entity can simultaneously act as a lender and a borrower.

A bank loan is a loan provided by banks to their customers in cash. The clients are economic and financial structures (legal entities) and citizens (individuals). A consumer loan is a loan provided to the population in commodity and monetary forms for the purchase of land, real estate, vehicles, and other personal goods. The role of lender here includes both specialized financial and credit organizations and banks, as well as any legal entities that sell goods or services.

These are funds lent to the state (represented by central and local authorities) to cover its expenses, or loans provided by the state itself as a creditor (the second option is less common). The emergence of government spending is associated with the implementation of economic and social programs for the development of society and the formation of a budget deficit. The population, economic and financial structures act as creditors of the state. State credit refers to the provision by the state of guarantees for the borrowed obligations of legal entities and individuals. State loan

International credit is a loan in commodity and monetary forms provided to each other by foreign commercial partners and states. Commodity, or intercompany, loans are used in the construction of large national economic facilities. Cash loans are provided by banks, consortiums of banks and international financial institutions and are intended for production and stabilization purposes. In modern conditions, the main form of credit is a bank loan.

The role of credit is revealed in its functions. - redistribution function. Credit operations are associated primarily with the accumulation of temporarily free funds of society, the redistribution of which allows you to invest free money capital in any sector of the economy. From industries with a low rate of profit, capital is released in the form of money, and then in the form of credit is directed to industries with a high rate of profit; - function of advancing the reproductive process. On the basis of credit, the continuity of the circulation of capital in society and the acceleration of the circulation of capital of each borrower are ensured, which allows him to overcome temporary gaps between the need for funds and their surplus without freezing funds in “liquidity reserves”. This function of credit involves the active use of all forms of credit and their flexible transformation into each other;

The function of creating credit circulation. Since its inception, credit has replaced full-fledged money with credit instruments: bills, banknotes and checks. Their use in non-cash payments and monetary obligations significantly reduced cash turnover, and therefore the circulation costs associated with the production, conversion, transportation and storage of cash. Currently, the issue of money by central banks and the banking system occurs on a credit basis. Lending by banks to clients and their refinancing by Central banks determine the scale of the release of money into economic circulation, and repayment of loans leads to the withdrawal of money from circulation.

At the same time, credit products are a special type of financial assets. Here, they are primarily distinguished from other financial assets by the repayable nature of the placement of funds, which allows us to speak of them as debt products. Credit products are characterized by the movement of value from the lender to the borrower and in the opposite direction.

From a functional point of view, the credit market is a set of economic relations regarding the purchase and sale of loan capital in order to ensure the continuity of the reproduction process, as well as meet the needs of the state and the population. In such a market, free funds (resources) of business entities, the state, as well as personal savings of citizens are accumulated, which are then transformed into an object of sale (loan capital) and redistributed on the terms of repayment, urgency and payment in accordance with the supply and demand for them.

From an institutional point of view, this is a set of credit and financial institutions, currency and stock exchanges that mediate the movement of temporarily free funds from sellers (owners) to buyers (users). In the credit market, borrowers act on the money demand side, and lenders act on the money supply side, who are the main participants in the credit market.

1 the accumulation function of the credit market lies in its ability to accumulate temporarily free funds of business entities, the state and the population (including small amounts) and transform them into loan capital, bringing their owners income in the form of interest; 2, the redistribution function of the credit market is closely related to its first, accumulation, function, when mobilized financial resources through various channels are sent directly to those who currently need them, for productive or consumer purposes. Thanks to this function of the credit market, resources are redistributed (the flow of free capital) from one area of ​​activity to another, between regions and territorial districts of the country. This ensures the redistribution of capital to dynamically developing sectors of the economy and priority investment projects; 3, the stimulating function of the credit market is to create appropriate conditions for involving free funds in the economy in credit circulation to perform the capital-creative function of credit;

4, the investment function of the credit market is a development of the redistribution function of credit, since currently the main demand in the credit market is for long-term resources that determine technical progress in various sectors of the economy, and, accordingly, economic growth in the country. As for individuals, they also have a great need for investment loans related to the development of land plots, dachas, construction of housing (urban and suburban real estate), garages, etc. 5 the regulatory function determines the ratio of supply and demand for temporarily free resources, creating the basis for alternative investments, for example, in government securities, insurance policies, foreign currency, and precious metals. 6 The social function of the credit market is to differentiate sellers and buyers of resources, creating opportunities to achieve social justice in the national economy (for example, preferential lending to small businesses, individual consumer needs of the population, etc.). 7 information function - acts as a source of information, knowledge, information about the market interest rate, types of credit products, their price, as well as the conditions for obtaining and methods of processing loans.

Bank credit market Credit market of non-bank financial institutions Credit market Credit market of non-financial organizations (market for commercial inter-business loans) State credit market Figure 1 – Structure of the credit market

Accordingly, the credit market is an independent segment of the financial market, which is a set of economic relations regarding purchase and sale under the influence of demand and supply of temporarily free funds of economic entities, carried out through financial intermediaries by concluding credit and deposit transactions.

Deposit market Bank credit market for deposits Market of interbank loans and deposits Market of bank client lending Market of corporate bank loans Market of bank lending to individuals Market of bank loans for the state and financial organizations Figure 2 - Structure of the bank credit market

The market for bank deposits (deposits) as part of the bank credit market is a market for banks to attract free funds into their circulation for further placement. In this market, the lenders are business entities, financial organizations, government agencies, and the population, and the borrowers are banks that compete with each other for the volume and cost of attracting client money, using deposit, interest and marketing policies for this. The bank corporate lending market is the most developed segment of the bank credit market, since in the total loan debt of banks, loans to the non-financial sector of the economy account for the lion's share - more than 65%. The main borrowers in this segment of the banking credit market are: commercial and non-profit enterprises and organizations that are in various forms of ownership (federal, state (except federal) and private property, i.e. non-state), and in different organizational and legal forms, different industry affiliations, as well as entrepreneurs without forming a legal entity, non-residents (legal entities).

Market of bank consumer loans. In recent years, the market for bank lending to individuals has been actively developing in Russia (the bank market for consumer loans). By type of borrower, these are loans provided to: all segments of the population, certain age or social groups, VIP clients, students, young families. The main credit products in this market are: mortgage loans (for the construction or purchase of housing, purchase of land, construction of country real estate, garages, outbuildings), loans for education, treatment, purchase of durable goods (household appliances, cars, furniture, funds small mechanization), luxury goods, antiques.

The market for bank loans for government financial bodies is insignificant both in terms of its volume and the share it occupies in the bank credit market. The main credit products of this segment of the banking credit market are: - loans for the cash gap between budget income and expenses; - a loan to cover the budget deficit; - loans to finance targeted programs for the socio-economic development of regions.

Interbank credit is an economic relationship between banks regarding the purchase and sale of resources on the terms of repayment, urgency and payment. Transactions are carried out in one of the segments of the banking credit market - the interbank lending market. Interbank lending is carried out, as a rule, within the framework of existing correspondent relationships between banks. A feature of the interbank credit market is that banks periodically act on it either as creditors or as borrowers (debtors), depending on the prevailing circumstances. Another feature of the interbank credit market is that loans are issued only in the form of non-cash money.

Chapter 2. Foreign exchange markets

2.1. The concept of the foreign exchange market and its structure

2.2. Main participants of the foreign exchange market and their operations

2.3. Foreign exchange transactions on the national foreign exchange market

2.4. Basic financial instruments of the foreign exchange market and strategies of market participants

2.5. Regulation of open currency positions of banks by the Bank of Russia

Literature

Chapter 3. Credit market and its segments

3.1. Credit as a special financial instrument

3.2. Credit market, its main characteristics and classification

6. By the nature of the creditors’ activities:

3.3. Banking credit market: its segments, participants, credit products and credit technologies

3.3.1. Market of bank deposits (deposits)

3.3.2. Bank corporate lending market

3.3.3. Banking market for consumer and other loans

3.3.4. Interbank credit market

3.3.5. Infrastructure of the banking credit market and its regulation

3.4. Prospects for the development of the banking credit market

3.5. Mortgage lending market

3.5.1. Structure of the mortgage lending market, features of its functioning

3.5.2. Features of the pledge of certain types of real estate in the Russian Federation

3.5.3. Mortgage lending instruments and mortgage technologies

3.5.4. Basic models for attracting resources to the mortgage lending market

3.5.5. Housing mortgage lending market in the Russian Federation

Microcredit (microfinance) market

Literature

Chapter 4. Securities market

4.1. The concept of the securities market and its functions

4.2. Types and classification of securities

4.3. Mortgage-backed securities

4.4. Institutional structure of the securities market

4.5. Securities market regulation

4.6. Current trends in the development of the securities market in the Russian Federation

Literature

Chapter 5. Insurance market

5.1. The essence of insurance, its forms and types

5.2. Insurance market, its structure and functions

5.3. Insurance market participants

year 2009

2010

5.4. Insurance products and operating technologies of insurance companies

5.5. State regulation of insurance activities in the Russian Federation

5.6. The current state of the Russian insurance market and prospects for its development

Chapter 6. Gold market

6.1. The gold market as a special segment of the financial market

6.2. Gold market participants and its functions

6.3. Main types of banking operations with precious metals and technologies for their implementation

Literature

1Instruction of the Bank of Russia dated January 16, 2004 No. 110-i “On mandatory standards for banks.”

1 Davidson E., Sanders E, Wolf L. L. et al. Securitization of mortgages: world experience, structuring and analysis: Per. From English M.: Vershina, 2007.

Literature

Federal Law of the Russian Federation “On Currency Regulation and Currency Control” dated December 10, 2003 No. 173-FZ.

Burenin A. N. Hedging with futures contracts of the RTS Stock Exchange. M.: Scientific and Technical Society named after. acad. S. I. Vavilova, 2009.

Burenin A. N. Forwards, futures, exotic and weather derivatives. M.: Scientific and Technical Society named after. acad. S. I. Vavilova, 2005.

International monetary, credit and financial relations / Ed. L. N. Krasavina. – M.: Finance and Statistics, 2007.

International financial market / Ed. V. A. Slepova, E. A. Zvonovoy. M.: Master, 2009.

Smirnov I. E., Zolotarev A. N. Exchange rate as the most important concept of the foreign exchange market system. St. Petersburg: Publishing house of St. Petersburg State University of Economics and Economics, 2007.

Chapter 3. Credit market and its segments

3.1. Credit as a special financial instrument

The concept of “credit” comes from the Latin word “creditum”, which means “loan, debt”. At the same time, many economists associate it with another, similar in meaning, term “credo”, i.e. “I believe”, and accordingly, a loan is seen as a debt obligation directly related to the trust of one entity who has transferred a certain value to another. In economic literature, credit , as a rule, it is defined as a system of economic relations that arise in the process of providing money or other material resources by the lender for temporary use to the borrower on the terms of repayment, urgency and payment. If the provision of funds is irrevocable and open-ended, then it is called financing.

The forms of credit are closely related to the essence of credit relations. Depending on the value lent, there are commodity, monetary And mixed (commodity-money) form of credit. The commodity form historically preceded the monetary form. In modern practice, the commodity form is not fundamental; the predominant form is the monetary form of credit. The commodity form is used both when selling goods in installments, and when renting property (including equipment leasing), and renting things.

Depending on who is the creditor in the transaction, the main forms of credit are distinguished : commercial (economic), banking, consumer, government And international loan.

Commercial (household) loan is a loan provided by supplier enterprises to buyer enterprises through deferred payment for goods sold, or by buyers to sellers in the form of an advance or prepayment for goods supplied. As a result, a business entity can simultaneously act as a lender and a borrower.

Bank loan – It is a loan provided by banks to their customers in cash. The clients are economic and financial structures (legal entities) and citizens (individuals).

Consumer loan is a loan provided to the population in commodity and monetary forms for the purchase of land, real estate, vehicles, and other goods for personal use. The role of creditor here is played by both specialized financial and credit organizations and banks, as well as any legal entities that sell goods or services.

State loan- these are funds loaned to the state (represented by central and local authorities) to cover its expenses, or loans provided by the state itself as a creditor (the second option is less common). The emergence of government spending is associated with the implementation of economic and social programs for the development of society and the formation of a budget deficit. The population, economic and financial structures act as creditors of the state. State credit refers to the provision by the state of guarantees for the borrowed obligations of legal entities and individuals.

International loan is a loan in commodity and monetary forms provided to each other by foreign commercial partners and states. Commodity, or intercompany, loans are used in the construction of large national economic facilities. Cash loans are provided by banks, consortiums of banks and international financial institutions and are intended for production and stabilization purposes. In modern conditions, the main form of credit is Bank loan.

The role of credit is revealed in its functions. In the theory of credit, there is no consensus on the number and content of credit functions. However, in most cases these include the following:

● redistributive function. Credit operations are associated, first of all, with the accumulation of temporarily free funds of society, the redistribution of which allows you to invest free money capital in any sector of the economy. From industries with a low rate of profit, capital is released in the form of money, and then in the form of credit is directed to industries with a high rate of profit. Thus, credit acts as a mechanism for leveling the rate of profit. With the emergence of banks, the processes of redistribution of funds in the economy received the most adequate mechanism;

● function advances for the reproductive process. On the basis of credit, the continuity of the circulation of capital in society and the acceleration of the circulation of capital of each borrower are ensured, which allows him to overcome temporary gaps between the need for funds and their surplus without freezing funds in “liquidity reserves”. This function of credit involves the active use of all forms of credit (commercial, banking, consumer, etc.) and their flexible transformation into each other;

● function creation of credit circulation. Since its inception, credit has replaced full-fledged money with credit instruments - bills, banknotes and checks. Their use in non-cash payments and monetary obligations significantly reduced cash turnover, and, therefore, the circulation costs associated with the production, conversion, transportation and storage of cash. Currently, the issue of money by central banks and the banking system occurs on a credit basis. Lending by banks to clients and their refinancing by central banks determines the scale of the release of money into economic circulation, and repayment of loans leads to the withdrawal of money from circulation.

A prominent representative of the capital-creative theory of credit, J. Schumpeter, introduced the provision of innovative essence of credit relations, which, in his opinion, is primary, while loans to support the current activities of companies are secondary, based on the innovative basis of credit relations, and were the product of the activities of large banks to manage the demand for credit resources. In his opinion, from a historical and logical point of view, credit is necessary specifically for innovation, it was for them that companies introduced it into their activities. They needed a loan to create a business, and at the same time its mechanism, which appeared in the process of introducing innovations, affected the old combinations of their work 1 . According to J. Schumpeter, it is this essence of credit (issuing a loan for a project) that is the basis of the modern credit market.

In general, supporters of capital-creative theories of credit, who developed their views in different socio-economic systems, were united by the idea of ​​credit as a tool for stimulating production, the independence of credit and its dominant role in relation to industrial capital. Based on the wide possibilities they identified for the impact of credit on production, they argued for the active role of banks and credit in stimulating economic growth. They talked about the primacy of the innovation and investment component of the bank loan market (understanding by it the lending of fixed capital of companies, leading to an increase in product supply and not accompanied by an increase in inflation) in comparison with loans for working capital. The loan here is intended to advance future capital expenditures of companies ( in modern terms– issued for a project without being secured by the borrower’s assets), and for banks it is important to assess the future prospects of the company’s activities and control its business for the period of lending. It is thanks to the financing of fixed capital that bank credit stimulates non-inflationary growth of the national economy, which is of great practical importance in modern conditions.

For modern science, it is more typical to study the properties of credit through credit products of credit market participants than its economic content through the role and functions of credit in the economy, the permissible limits of its involvement in the turnover of borrowers, based on their industry characteristics 1 . In Western and domestic literature and in IFRS, credit products are considered today as financial instruments, i.e., as a relationship based on an agreement between the parties, as a result of which one party (the lender) has a financial asset, and the other party (the borrower) has a financial liability.

At the same time, credit products have both characteristics common to other financial assets and individual properties. The general properties of credit products include:

the creditor has a claim on the debtor’s income or property after the loan is issued;

sale by creditors of credit products in order to obtain economic benefits, which can be expressed in the form of increased income (due to interest and commissions on loans, the possibility of selling other products related to credit products), increased customer confidence, improved image of creditors, etc.;

provision of resources by creditors with the intention of retaining them in their portfolio until their repayment period or with the intention of subsequent sale (assignment) to third parties;

return by borrowers of received resources in cash or other financial assets.

At the same time, credit products act special type of financial assets. Here, first of all, they are distinguished from other financial assets returnable nature placement of funds, which allows us to talk about them as debt products. Credit products are characterized by the movement of value from the lender to the borrower and in the opposite direction. This requirement determines the temporary nature of the funds being in the borrowers’ circulation and the need for both lenders and borrowers to provide conditions for debt repayment. Accordingly, lenders must assess the fulfillment of these conditions and take measures to reduce risks by assessing the likelihood of loan repayment. This involves identifying (taking into account the purpose of lending) sources of loan repayment, assessing their reliability and adequacy and, further, structuring loan products (taking into account the purpose and sources of loan repayment and the structure of the resources of the lenders themselves). It is important that incorrectly selected conditions for the provision of credit products only increase the risks of the parties due to the possible non-completion of credit transactions.

An integral condition for the repayment of loans is also a system of trust between the participants in the credit transaction, which for lenders ensures the transparency of borrowers, for borrowers - an understanding of the approaches of credit management of lenders and, as a result, allows them to correctly interpret each other’s intentions, develop optimal credit decisions taking into account the financial needs of the borrower, risks and the profitability of the loan transaction for lenders.

Equity products (unlike debt products) do not imply a return flow of invested value to the investor, but entitle him to a share in the income (loss) of the investee and a share in its net assets. At the same time, it should be noted that if lenders assume most of the risks of a credit transaction (typical for project lending and project financing), credit products acquire the features of equity (equity) financing. Here, creditors are already involved in the distribution of profits from investment projects in proportion to their share in their financing.

The repayable nature of the loaned value presupposes the determination by the lender of clear conditions for its repayment, which, first of all, are expressed in the establishment of repayment terms milestone payments and principal (which are not the case for shares and other equity instruments) and can be determined by a specific date or the occurrence of certain events. This expresses principle of urgency of lending. Here we support the traditional classification of credit products based on their division into short-term (with a repayment period of up to one year), medium-term (from one to three years) and long-term (more than three years), since a loan term of up to three years is usually insufficient for payback of large investment projects carried out using borrowed loans.

The terms of loans act as a limiter on the availability of borrowed funds in the circulation of borrowers, stimulating them to carefully justify the size and duration of attraction of resources, their effective use, and at the same time as a condition for ensuring the liquidity and solvency of creditors. The terms of loans are determined by the timing of completion of the activities being financed, which requires their justification by borrowers, and are initially taken into account by lenders when structuring loans, and subsequently, after issuing loans, when monitoring them in order to identify problem loans in order to take the necessary measures in a timely manner. Thus, short-term loans can be provided without collateral and at a lower interest rate; long-term loans (as more risky) - secured and at a higher interest rate. At the same time, in terms of structuring investment loans, it is necessary to allocate periods of development and recoupment of costs to establish a deferment in loan repayment for the period of development of costs, followed by a phased repayment as the facilities are put into operation.

The next principle of lending is payment, implemented through the interest rate mechanism and representing for lenders the meaning of creating financial assets, a means of preserving the loaned value and compensating for their risks, and for borrowers - a cost measure of attracting “foreign” resources, the need for their productive use to achieve proper return on investment.

The repayment of loans has an important impact on the financial management of borrowers in terms of choosing the optimal sources of financing from the position of balancing price and non-price factors. We include the following as non-price factors (from the perspective of borrowers – legal entities):

lenders' requirements for the business reputation, creditworthiness of the borrower, and its accounting (financial) statements;

speed of loan provision;

the opportunity for borrowers to maintain the existing management structure;

the possibility of reflecting a loan on the balance sheet and attributing the costs of raising funds to the cost of manufactured products (works, services);

receiving additional services and a special individual approach from lenders;

formation of the company’s credit history in the market.

The principle of payment is reflected in the internal regulations of lenders (for example, in documents on credit and interest policies), in agreements with borrowers, which determine the interest rate on loans, various commissions, as well as penalties for non-fulfillment or improper fulfillment of contractual obligations by borrowers.

The price of credit products reflects the general relationship between supply and demand in the loan capital market and depends on a number of factors, in particular: the stability of money circulation in the country and inflation expectations, the cost of resources provided by lenders to borrowers for loans, the creditworthiness of borrowers, the terms of loans and the quality of their collateral . However, objectively, it has lower and upper limits: the lower limit is the lenders’ costs of attracting resources, administrative costs and the minimum rate of profit required for business development, and the upper limit is the rate of profitability for the relevant sector of the economy and the level of income of individual borrowers. At the same time, for loans for servicing the working capital of companies, this is the rate of profitability of their current economic activities, and for loans for the implementation of investment projects, this is the level of profitability of specific projects.

The lending principles presented above receive a special interpretation in relation to such a segment of the credit market as syndicated loan market, due to the presence of several creditors. So, the principle of repayment involves a comprehensive assessment of credit risk not by one lender, but by several lenders - members of the syndicate in accordance with the individual methodology of each. This predetermines the high reliability of syndicated loans. Therefore, they are usually provided without being secured by the borrowers’ existing assets, but with the latter’s obligation not to attract new loans on more favorable terms for new lenders (in particular, against collateral). Information about the credit transaction becomes known to a wide range of people, which forms the public credit history of the borrower and significantly increases the importance of timely loan repayment for him.

For the principle of urgency, along with the term for providing the loan, the period of creation of the syndicate is important due to the duration of this procedure. For this reason, syndicated loans cannot be provided promptly to meet the current needs of borrowers, but are issued, as a rule, to finance their medium- and long-term capital costs 1, combining large amounts and long terms of placement of funds with a flexible loan repayment schedule. The specificity of the next principle - payment - is manifested in the establishment of the interest rate on the loan by agreement between creditors, i.e., based on the diversification of their resources, the distribution of credit risks between them and their public reputation as members of the syndicate. Thus, interest rates on them act as indicators of market prices for the purchase and sale of long-term resources. In relation to ordinary, non-syndicated loans, it is considered that they are provided on market terms to borrowers not related to the lenders, and vice versa, on preferential terms to persons related to them.

In addition to the above lending principles, we highlight two more principles for organizing syndicated loan products. This:

partnership and respect for the interests of syndicate participants - syndicate participants act as partners, the interests of each of them are not infringed upon by others, they avoid conflicts of interest among themselves within the syndicate (for example, when, as a paying agent of the syndicate, a participant can become a financial consultant to the borrower or become part of one financial -industrial group with him);

publicity of a credit transaction – information about the transaction is known to a wide range of people, and not just to lenders and the borrower. This is determined by the fact that the participant - the organizer of the syndicate and the borrower invite a large circle of lenders to participate in the transaction, not all of which will ultimately join the syndicate, but will receive information about each other. In addition, the parameters of transactions in the syndicated loan market are publicly available (for example, on the websites of information and analytical agencies). The openness of the transaction forms the business reputation of all syndicate participants in the market.

Based on the above, a loan by its economic essence is a special financial instrument. In addition, credit transactions must be concluded on the basis of formal norms of the legislation of the Russian Federation, the rules of the Central Bank of the Russian Federation, the Federal Financial Markets Service and business traditions. Considering the economic essence of credit, the distinctive features of contractual relations in the credit market should be:

bilateral “creditor-borrower” relations based on the economic interests of the parties, which must be formalized in writing;

provision of funds on loan on the terms of repayment, urgency and payment, which must be reflected as the essential terms of the relevant agreements (credit agreement, loan agreement, agreement for the purchase and sale of debt securities, leasing, financing against the assignment of a monetary claim, repo, novation, etc.) d.). This involves stipulating in contracts the amount and conditions for providing loans (the purpose of the loan, the timing of its repayment, ways to ensure that the borrower fulfills his obligation), the borrower’s obligation to repay the loan and pay interest (the amount of the interest rate, the procedure for calculating and paying interest, methods of repaying the loan), other rights and obligations of the parties and the procedure for resolving disputes. At the same time, the agreements must provide for the repayment by the borrower of the loan and interest on it in cash and (or) other financial assets, and the terms for their repayment must be established taking into account the timing of the receipt of income by the borrower;

registration of the creditor's rights to ensure the fulfillment of the debtor's obligations in the ways provided for by the Civil Code of the Russian Federation (Part I, Chapter 23) and acceptable in relation to a specific creditor, borrower and a specific credit transaction (pledge, surety, bank guarantee, their combination with each other, etc.);

the obligation of the borrower to use the funds received for the intended purpose specified in the agreement, which must ensure the return of funds to the lender;

the right of the parties to refuse to issue/receive a loan in the presence of circumstances indicating non-repayment of the loan, its misuse, and other circumstances provided for by the agreement.

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The concept of “credit” comes from the Latin word “creditum”, which means “loan, debt”. At the same time, many economists associate it with another, similar in meaning, term “credo”, i.e. “I believe”, and accordingly, a loan is seen as a debt obligation directly related to the trust of one entity who has transferred a certain value to another.

In economic literature credit, as a rule, it is defined as a system of economic relations that arise in the process of providing money or other material resources by the lender for temporary use to the borrower on the terms of repayment, urgency and payment. If the provision of funds is irrevocable and open-ended, then it is called financing.

The forms of credit are closely related to the essence of credit relations. Depending on the value lent, there are commodity, monetary And mixed (commodity-money) form of credit. The commodity form historically preceded the monetary form. In modern practice, the commodity form is not fundamental; the predominant form is the monetary form of credit. The commodity form is used both when selling goods in installments, and when renting property (including equipment leasing), and renting things.

Depending on who is the creditor in the transaction, highlight the main forms of credit : commercial (economic), banking, consumer, government And international loan.

Commercial (household) loan is a loan provided by supplier enterprises to buyer enterprises through deferred payment for goods sold, or by buyers to sellers in the form of an advance or prepayment for goods supplied. As a result, a business entity can simultaneously act as a lender and a borrower.

Bank loan - It is a loan provided by banks to their customers in cash. The clients are economic and financial structures (legal entities) and citizens (individuals).

Consumer loan is a loan provided to the population in commodity and monetary forms for the purchase of land, real estate, vehicles, and other goods for personal use. The role of creditor here is played by both specialized financial and credit organizations and banks, as well as any legal entities that sell goods or services.

State loan- these are funds loaned to the state (represented by central and local authorities) to cover its expenses, or loans provided by the state itself as a creditor (the second option is less common). The emergence of government spending is associated with the implementation of economic and social programs for the development of society and the formation of a budget deficit. The population, economic and financial structures act as creditors of the state. State credit refers to the provision by the state of guarantees for the borrowed obligations of legal entities and individuals.

International loan is a loan in commodity and monetary forms provided to each other by foreign commercial partners and states. Commodity, or intercompany, loans are used in the construction of large national economic facilities. Cash loans are provided by banks, consortiums of banks and international financial institutions and are intended for production and stabilization purposes. In modern conditions, the main form of credit is Bank loan.

The role of credit is revealed in its functions . In the theory of credit, there is no consensus on the number and content of credit functions. However, in most cases these include:

● redistributive function. Credit operations are associated, first of all, with the accumulation of temporarily free funds of society, the redistribution of which allows you to invest free money capital in any sector of the economy. From industries with a low rate of profit, capital is released in the form of money, and then in the form of credit is directed to industries with a high rate of profit. Thus, credit acts as a mechanism for leveling the rate of profit. With the emergence of banks, the processes of redistribution of funds in the economy received the most adequate mechanism;

● function advances for the reproductive process. On the basis of credit, the continuity of the circulation of capital in society and the acceleration of the circulation of capital of each borrower are ensured, which allows him to overcome temporary gaps between the need for funds and their surplus without freezing funds in “liquidity reserves”. This function of credit involves the active use of all forms of credit (commercial, banking, consumer, etc.) and their flexible transformation into each other;

● function creation of credit circulation . Since its inception, credit has replaced full-fledged money with credit instruments - bills, banknotes and checks. Their use in non-cash payments and monetary obligations significantly reduced cash turnover, and, therefore, the circulation costs associated with the production, conversion, transportation and storage of cash.

A prominent representative of the capital-creative theory of credit, J. Schumpeter, introduced the provision of innovative essence of credit relations. In his opinion, from a historical and logical point of view, credit is necessary specifically for innovation, it was for them that companies introduced it into their activities. They needed a loan to create a business, and at the same time its mechanism, which appeared in the process of introducing innovations, affected the old combinations of their work. According to J. Schumpeter, it is this essence of credit (issuing a loan for a project) that is the basis of the modern credit market.

It is more typical for modern science studying the properties of credit through credit products of credit market participants. In Western and domestic literature and in IFRS loan products are being considered today as financial instruments, i.e., as a relationship based on an agreement between the parties, as a result of which one party (the lender) has a financial asset, and the other party (the borrower) has a financial liability.

At the same time, credit products have both characteristics common to other financial assets and individual properties.

Credit products are special type of financial assets. Here, first of all, they are distinguished from other financial assets returnable nature placement of funds, which allows us to talk about them as debt products. Credit products are characterized by the movement of value from the lender to the borrower and in the opposite direction.

The repayable nature of the loaned value presupposes that the lender defines clear conditions for its repayment, which, first of all, are expressed in establishing deadlines for the return of interim payments and the principal debt (which is not the case for shares and other equity instruments) and can be determined in the form of a specific date or the occurrence of certain events. This expresses principle of urgency of lending .

The next principle of lending is payment, implemented through the interest rate mechanism and representing for lenders the meaning of creating financial assets, a means of preserving the loaned value and compensating for their risks, and for borrowers - a cost measure of attracting “foreign” resources, the need for their productive use to achieve proper return on investment.

In modern conditions, banks provide their clients - non-financial organizations - with a variety of types of loans (loan products), which can be classified according to various criteria:

● by borrower groups: loans to industry, trade and supply organizations, agriculture, transport enterprises, construction industry, etc.;

● by lending purposes: loans for current needs (serve the needs of companies for working capital) and loans for investment purposes (to finance companies' investments in fixed assets);

● by terms of provision means:

· demand loans;

· urgent loans, which are divided into: short-term (up to one year), medium-term (from one to three years) and long-term loans (more than three years). As a rule, loans that form working capital are short-term, and loans involved in the renewal, expansion, reconstruction of fixed assets are medium- and long-term;

● to size: large loans (the amount of which exceeds 5% of banks’ own funds (capital), medium-sized (from 1 to 5% of banks’ own funds) and small loans (of less than 1% of banks’ own funds);

● for ensuring:

· unsecured (blank) loans;

· secured loans, which by the nature of the collateral are divided into: secured loans, loans secured by guarantees of third solvent parties and bank guarantees, insured loans;

● by currency of provision funds: loans in national currency, loans in foreign currency, loans with the right of the borrower to choose the loan currency (multi-currency loans);

● by methods of issuing and repaying loans (lending methods): one-time, term loans, credit lines, overdrafts, syndicated loans;

● in the direction of issue: loans issued to the borrower’s settlement (current) account, and loans issued directly for making payments (payment loans (not allowed by the rules of the Central Bank of the Russian Federation));

● by types of interest rates: loans with a fixed interest rate and loans with a floating interest rate;

● according to repayment frequency: loans repaid in one lump sum (on a certain date, usually at the end of the contract term) and repaid in installments (in installments - even or uneven, within the terms agreed with the bank);

● according to risk level: standard loans, non-standard loans, doubtful loans, problem loans and bad loans 1.

The composition of credit products for each bank is determined by the target groups of clients and the specifics of their financial needs, which, first of all, differ in the field of servicing current activities and business development. Therefore, the basic types of credit products are short-term (for current needs) and investment products. They must provide an individual approach to borrowers during standard bank lending procedures.

Two types of characteristics can be distinguished that make it possible to qualify a particular procedure or operation as related to a financial instrument: the basis of the operation must be financial assets and liabilities; the transaction must take the form of a contract.

1. Financial instruments. Essence and classification of financial instruments

When analyzing investment activity in general, and investment processes in the securities market, in particular, it is necessary to include the concept of a financial instrument among the basic terms.

International financial reporting standards define a financial instrument as any contract that simultaneously creates a financial asset for one party and a financial liability or equity instrument for the other party.

The definition of a financial instrument refers only to those contracts that result in a change in financial assets and liabilities. These categories are not of civil law, but of economic nature.

Financial assets include:

· cash (cash at the cash desk, as well as in settlement, foreign currency and special accounts);

· a contractual right to claim cash or another financial asset from another company (for example, accounts receivable);

· contractual right to exchange financial instruments with another company on mutually beneficial terms (for example, an option on bonds);

· equity instrument of another company (shares, units). A financial obligation is any obligation under a contract:

· exchange financial instruments with another company.

An equity instrument is a way of participating in the capital (authorized capital) of an economic entity.

In addition to equity instruments, a significant role in the investment process is played by debt financial instruments - loans, loans, bonds - which have specific features, which, in turn, entail corresponding consequences for the issuers of these instruments (lenders) and holders of instruments (borrowers).

So, we can distinguish two types of characteristics that allow us to qualify a particular procedure or operation as related to a financial instrument:

· the basis of the transaction must be financial assets and liabilities;

· the transaction must take the form of a contract.

Thus, financial instruments are by definition contracts and can be classified accordingly. All financial instruments are divided into two large groups - primary financial instruments and derivatives.

2. Primary financial instruments

Primary financial instruments are instruments that definitely provide for the purchase (sale) or delivery (receipt) of some financial asset, resulting in mutual financial claims of the parties to the transaction. In other words, the financial assets resulting from the proper execution of these contracts are predetermined. Such assets can be cash, securities, accounts receivable, etc.

Primary financial instruments include:

· loan agreements;

· loan agreements;

· bank deposit agreements;

· bank account agreements;

· financing agreements for assignment of monetary claims (factoring);

· financial lease agreements (leasing);

· surety agreements and bank guarantees;

· contracts based on equity instruments and cash.

Loan agreement. Under a loan agreement, one party (the lender) transfers money or other things into the ownership of the other party (borrower), and the borrower undertakes to return to the lender the same amount of money (loan amount) or an equal number of other things received by him of the same kind and quality.

A loan agreement is a specific version of a loan agreement, the creditor of which is a bank or other credit organization. At the same time, the loan agreement has certain features: the subject of the loan agreement can only be money; A mandatory element of the contract is the condition of paying interest for using the loan.

Bank deposit agreement. Under a bank deposit agreement, one party (the bank), having accepted the amount of money (deposit) received from the other party (depositor), undertakes to return the deposit amount with interest on the terms and in the manner prescribed by the agreement. Such an agreement is also a type of loan agreement, in which the depositor acts as the lender and the bank acts as the borrower. The bank deposit agreement does not allow settlement transactions for goods (work, services), and at the end of the agreement, the deposit amount is returned to the lender.

Financing agreement for the assignment of a monetary claim (factoring). Under a factoring agreement, one party (financial agent) undertakes to transfer funds to the other party (client) to meet the monetary claim of the client (creditor) to a third party (debtor), arising from the provision by the client of goods (performance of work or provision of services) to a third party, and the client undertakes to assign this monetary claim to the financial agent.

Financial lease (leasing) agreement. Under a leasing agreement, the lessor undertakes to acquire ownership of the property specified by the lessee for a fee for temporary possession and use.

Surety agreements and bank guarantees. What was common to all the contracts described above was that the result of their execution was a direct change in the assets and liabilities of the counterparties. Equity instruments and money. In previous classifications, equity instruments and cash were classified as financial instruments.

3. Derivatives

A derivative financial instrument is an instrument that provides for the possibility of purchasing (selling) the right to acquire (delivery) an underlying asset or to receive (pay) income associated with a change in some characteristic parameter of this underlying asset. Therefore, unlike the primary financial instrument, a derivative instrument does not imply a predetermined transaction directly with the underlying asset.

The basis of many financial instruments and transactions with them are securities. A security is a document certifying, in compliance with the established form and required details, property rights, the exercise or transfer of which is possible only upon presentation of this document. Derivative financial instruments include:

· futures contracts;

· forward contracts;

· currency swaps;

· interest rate swaps;

· financial options;

· REPO operations;

· warrants.

Forward and futures contracts are contracts for the purchase and sale of a commodity or financial instrument for delivery and settlement at a future date. The owner of a forward or futures contract has the right to: buy (sell) the underlying asset in accordance with the conditions specified in the contract and (or) receive income in connection with changes in prices for the underlying asset. Thus, the subject of bargaining in such agreements is price.

Futures contracts are essentially a development of forward contracts. Depending on the type of underlying asset, futures are divided into financial and commodity.

Forward and futures contracts are essentially so-called hard trades, i.e. each of these contracts is binding on the parties to the contract. However, these two types of contracts may differ significantly in their objectives. A forward contract is most often concluded for the purpose of actual sale (purchase) of the underlying asset and insures the supplier and buyer against possible price changes, i.e. The main motive for the transaction is the parties' desire for greater predictability of the consequences of the transaction. In the case of a futures contract, what is often important is not the actual sale (purchase) of the underlying asset, but the gain from price changes, i.e. arrived. Thus, futures contracts are characterized by speculativeness and a greater amount of risk. On the other hand, a forward contract has a more hedging nature. Hedging (as opposed to speculation) is understood as a purchase and sale operation of special financial instruments, with the help of which losses from changes in the value of the hedged object (asset, liability, transaction) are partially or fully compensated.

In addition, there are other differences between futures and forwards. A forward contract is “tied” to an exact date, and a futures contract is tied to the month of execution, and prices for goods and financial instruments specified in the contract change daily throughout the entire period until their execution. Forward contracts are specified, futures contracts are standardized. In other words, any forward contract is tailored to suit the specific needs of individual clients. Therefore, forward contracts are mainly objects of over-the-counter trading, and futures contracts are traded on futures exchanges, i.e. There is a permanent liquid futures market. Therefore, if necessary, the seller can always adjust its own obligations for the delivery of goods or financial instruments by repurchasing its futures. The efficiency of the futures market, its financial stability and reliability are ensured by a clearing system, within which market participants are recorded, the status of their accounts is monitored and they deposit guarantee funds (in the form of collateral), and the amount of winnings (losses) from participation in futures trading is calculated. All transactions are processed through a clearing house, which becomes a third party to the transaction - thus, the seller and buyer are released from obligations directly to each other, but for each of them obligations arise to the clearing house.

Futures contracts are most widespread in the field of trading in agricultural products, rolled metal, petroleum products and financial instruments.

An option (the right to choose) is a contract concluded between two parties - the seller (issuer) and the buyer of the option (its holder). The option holder receives the right, within the period specified in the terms of the option, to execute the contract, either sell them to him (put option), sell the contract to another person, or refuse to execute the contract.

An option is one of the most common financial instruments in a market economy. Formally, options are a development of futures, but unlike futures and forward contracts, an option does not require the sale (purchase) of the underlying asset, which, under unfavorable conditions, can lead to significant losses.

A special feature of an option is the fact that as a result of the transaction, the buyer does not acquire the actual financial assets or goods, but only the right to purchase (sell) them. Depending on the types of underlying assets, there are several types of options: on corporate securities, on government debt obligations, on foreign currency, commodities, futures contracts and stock indices.

The right to preferential purchase of company shares (share option) is a specific derivative financial instrument, the introduction of which was initially associated with the desire of shareholders to increase the degree of control over the joint-stock company and counteract the decrease in the share of income due to the emergence of new shareholders with an additional issue of shares. This security specifies the number of shares (or part of a share) that can be purchased for it at a fixed price - the subscription price. A similar procedure is important, for example, when transforming a closed joint stock company into an open company. Rights to preferential purchase of shares as securities are traded on the stock market independently, while their market price may differ significantly from the theoretical one, which is primarily due to investors’ expectations regarding the investment attractiveness of the shares of a given company. If the shares are expected to rise in price, the the market value of the right to purchase, in which case investors can receive additional income. The main significance for the issuing company of a financial instrument of this type is due to the fact that the process of purchasing shares of this company is intensified.

A warrant is a security that gives the right to buy (sell) a fixed amount of financial instruments within a certain time. In the literal sense, a warrant means guaranteeing an event (in this case, the sale or purchase of a financial instrument). Thus, the purchase of a warrant can be regarded as the investor’s implementation of a strategy of caution and a desire to reduce risk in the case where the quality and value of the securities, in the investor’s opinion, are insufficient or difficult to determine.

There are different types of warrants in the stock market. A typical option is for the potential holder of a warrant to purchase the ability to buy a specified number of shares at a specified price and during a specified period. In addition, there are perpetual warrants, which provide the opportunity to purchase a financial instrument at any time. The warrant has no maturity date or value. A warrant does not give its owner the right to interest, dividends, and its owner does not have the right to vote on decisions, unlike the owner of a share. A warrant can be issued simultaneously with other financial instruments, and thereby increase their investment attractiveness, or separately from them. In any case, after some time, the warrant begins to circulate as an independent security - in this case, possible transactions with it can bring both income and loss. Unlike purchase rights, which are issued for a relatively short period, a warrant can last for several years. As a rule, warrants are issued by large companies and relatively rarely - usually warrants are issued together with a bond loan of the issuing company, which ensures both the attractiveness of the loan and the possibility of increasing the authorized capital of the company in the event of the exercise of the warrants.

Swap (exchange) is an agreement between two financial market entities to exchange obligations or assets in order to reduce the risks and costs associated with them. The most common types of swaps are interest rate and currency swaps. Swaps provide the opportunity to combine the efforts of two clients (enterprises) to service received loans in order to reduce the costs of each.

REPO transactions are an agreement to borrow securities against a guarantee of funds or to borrow funds against securities. This agreement is sometimes called a securities repurchase agreement. This agreement provides for two opposing obligations for its participants - the obligation to sell and the obligation to buy. A direct repo transaction involves one party selling a package of securities to the other party with an obligation to buy it back at a pre-agreed price. Repurchase is carried out at a price higher than the original one. The difference between prices, reflecting the profitability of the transaction, is usually expressed in annual percentages and is called the repo rate. The purpose of a direct REPO operation is to attract the necessary financial resources. A reverse repo transaction involves the purchase of a package with the obligation to sell it back; the purpose of such an operation is to allocate free financial resources. REPO operations are carried out mainly with government securities and relate to short-term operations - from several days to several months. In a certain sense, a repurchase agreement can be considered as a secured loan.

Analysis of the main financial instruments allows us to draw the following conclusions regarding their purpose: financial instruments are designed to implement the following four main functions:

· hedging;

· speculation;

· mobilization of sources of financing, including investment activities;

· assistance in operations of a current nature (primary financial instruments dominate).

conclusions

International financial reporting standards define a financial instrument as any contract that simultaneously creates a financial asset for one party and a financial liability or equity instrument for the other party.

The definition of a financial instrument refers only to those contracts that result in a change in financial assets and liabilities. These categories are not of civil law, but of economic nature.

Thus, financial instruments are by definition contracts and can be classified accordingly. All financial instruments are divided into two large groups - primary financial instruments and derivatives.

Primary financial instruments are instruments that definitely provide for the purchase (sale) or delivery (receipt) of some financial asset, resulting in mutual financial claims of the parties to the transaction.

A derivative financial instrument is an instrument that provides for the possibility of purchasing (selling) the right to acquire (delivery) an underlying asset or to receive (pay) income associated with a change in some characteristic parameter of this underlying asset.

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