Participants of the securities market
The securities market participants - these are physical and legal persons that enter into economic relations with regard to the transfer of the rights to securities, respectively.
Professional participants of the securities market are legal entities, including financial institutions, which carry out the following kinds of activity:
Depository;
keeping of the register of owners of securities;
the organization of trading on the securities market;
brokerage;
dealer;
management of securities;
determination of mutual obligations;
Further the participants of the securities market are divided into:
issuers engaged in the primary issuance of securities in circulation;
investors - purchasers of the securities;
stock of the middlemen traders, providing the connection between issuers and investors and having the state license for the relevant intermediary activities (brokerage and dealer services);
brokers are participants of the securities market, which carry out operations at the expense of funds of the customer (legal entities only).
dealers - participants of the securities market, carry out operations with securities for its own account (only legal entities, which is a commercial organization).
the infrastructure;
organizations regulation and control.
Issuers are professional participants of the securities market, which issue securities in circulation and bear obligations to their owners, usually they are legal entities. And on the the practice of issuers - this is the first sellers of securities, although in itself its publication does not necessarily have to be accompanied by a transaction of purchase and sale and in the concept of the «Issuer» the emphasis is not only on the issue of security, but also on the acceptance of the obligations by the Issuer on it, and it means, and to receive certain rights, connected with the security, the owner of it. Therefore, issuers are normally of legal persons, although some types of securities may issue and citizens.
Investors are participants of the securities market, legal entities and individuals who invest their available capital or savings in securities and investors will at the same time and issuers, if they carry out their own issues of securities, respectively.
Thus the investor will always be the purchaser of a security, although not every buyer it is the investor as well. At the same time the investor may be the Issuer, if he carries out the issue of securities and the Issuer is at the same time the investor, if he invests its funds in securities of other issuers. If the Issuer and can be with some degree of conventionality called the first seller of its securities, the investor, as a rule, never will be the «end» the buyer of a security. The investor has been acting in the role of the merchant, in a role of the buyer depending on the situation on the market, prices and yields. Correctly identify issuers only with the sellers of securities, and investors - only with their customers so.
Issuers and investors act together at the same time and sellers, and buyers of the securities market and the division of the market participants on issuers and investors will be made not by their position relative to the purchase and sale of the securities, and in relation to the property rights and obligations.
Stock intermediaries - are the professional participants of the securities market, providing the link between issuers and investors and with the state license for this activity.
Brokers are stock brokers who carry out operations with securities for the account of the customer's funds in accordance with the agreements of Commission or of the Commission and the broker receives income in the form of commissions for their work.
Dealers - the stock exchange intermediaries, producing operations with securities for its own account. The income of the dealers is the difference between the sale price and the purchase price of the securities on the market.
Management company - stock intermediaries operating in the trust management of securities securities or cash, released from the sale of securities or destined for their procurement, on behalf and in the interests of their clients, they can be only legal entities can be formed in various organizational-legal forms, must be available for them the state license.
