Sructure of investment process

Posted on June 20th, 2008 by admin, under Structure of investment process.

Investment process is a mechanism of bringing together of investors (having temporally free funds) and sellers of financial instruments (actions, bonds) – having needs for money. It is possible on stocks.

Financial markets is a mechanism, taking together “sellers” and “buyers” by means of mediators (exchange stocks). There are a several types of financial markets - stock market, bonds, market of futures and options.

Investors participate in financial operations on markets both directly and through “financial institutes” – banks, insurance and pension companies (funds), investment funds.

The most important participant in financial markets is, as a rule, state - as a seller of government bonds, as investor (placing temporarily free funds) and as a regulatory organ.

Companies typically act as nets-borrowers. Private individuals supply considerable part of free funds to the market in order to get profit.