What is finance ?
Finance -under this term is understood as the totality of all material resources ( in cash - Modern interpretation!), Which are in possession of the subject of the economy: individual, organization, business or state.
Finance and money - closely interrelated concepts. There would be no money - the concept of finance would not exist. Thus, the term "financing" means "to provide money". The "Finance" is often used in everyday life as synonymous with the word "money".
Finance- generalizing economic term, meaning both 1) cash, financial resources considered in their creation and movement, distribution and redistribution, use and 2) economic relations due to mutual calculations between economic entities, cash flow, cash circulation, use money". (Raysberg B. A., Lozovsky L. Sh., Starodubtseva E. B.Sremenny Economic Dictionary. 5th ed., Pererab. And add. - M.: Infra-M.2007. - 495 c)
Finance is an economic category reflecting the economic relations of funds funds. " "Big Economic Dictionary" N.N.Azrilyna (Publisher: Institute of New Economics, Omega-l, groupComp Angy, Int-t new, ek., Instit. New, eq., In-t new ek., 2004) -
Finance (from lat. financia. - Cash, income) - a set of economic relations arising in the process of formation, distribution and use of centralized and decentralized cash flow funds. Usually we are talking about the target funds of the state or economic entities (enterprises). The most important concept in the field of finance is budget.
There is also the eponymous economic science - finance.
Finance like science
Scientific discipline finance He studies money and socio-economic efficiency related to the formation, distribution and use of material resources. Finance is an applied to the economic Discipline.
Traditionally, finances are divided into public involved. The first group includes: state finance authorities (local finances). In the second group allocate:
personal Financial Finance Finance;
finance of small business, corporate finance (finance of enterprises, business finances), bank finance (banking), finance of non-profit organizations.
For public finances, expenses are primary, since funding is made clearly regulated problems and functions of public education. For private finances, incomes are primary, all activities are aimed at receiving the receipt, which is subsequently used at the discretion of the person.
General skill (and perhaps even art) to manage finance studies science financial management. Financial Management Basis - Science banking. Financial markets Learn science financial economics. Financial statistics It is studied within the framework of a small selection of statistics. Processing Methods Financial INFORMATION Effects Applied Matter financial mathematics. Control over financial flows is studied within the framework of the discipline financial control.
Subject of financial theory
Financial theory(FinanceTheory.) in a broad sense - This is the science of how people manage spending and the receipt of limited monetary resources (i.e. make financial decisions) over a certain period of time.
Financial solutions (FinancialSolutions) are characterized by the fact that the costs and receipts of cash resources: 1) are separated in time and 2) as a rule, they cannot be accurately predicted by neither those who make decisions none else.
Financial solutions are implemented using the financial system.
Financial system(FinancialSystem) is a totality of markets and other institutions used to conclude financial transactions, the exchange of assets and risks.
This system includes:
markets of money, shares, bonds and other financial instruments;
financial intermediaries (such as banks and insurance companies), firms offering financial services (for example, financial and consulting companies);
authorities governing all financial institutions.
Financial intermediaries They call firms whose main role is to provide financial services and the sale of financial products. These include banks, investment and insurance companies. The number of financial services includes the opening of check accounts, issuing commercial loans, mortgage loans, providing access to a wide range of insurance contracts and participation in mutual funds.
The modern financial system is global. Financial markets and intermediaries are interconnected with each other through a comprehensive international telecommunications network, thanks to which payments and securities trade are made almost around the clock. Thus, if a large corporation, located, say, in Germany, decides to finance a new project, then it considers any investment opportunities, including, for example, the release and sale of shares on London or New York stock exchanges or receiving a loan in any Japanese Pension Fund. Moreover, in the latter case, the loan can be represented both in German brands and in Japanese yen or in US dollars.
Briefly we can say that finance science studies Movement of cash flows in the economy and the formation of funds funds from various economic entities. Depending on their species, allocate:
macrofinance, i.e. Monetary flows of the state, which in turn are divided into blocks: balance of payments, budget balance, bank balance;
microfinance, i.e. Cash flows of enterprises (corporate finance), non-profit organizations (public finances), banks (bank management).
In widesense to the theoryfinance Believe:
Theory of money, monetary policy, the doctrine of central banks (according to the International Classifier Journal (JournalConomicLiterature) - section in the group E - Macroeconomics and monetary policy;
The theory of taxes and budget (JEL is sections in the group N - public sector public sector in PublicConomics),
Theory of investment, portfolio theory, corporate finance theory (JEL is partitions of the group G - financial economy)
Banking, Financial Institutions, Pension Funds, Financial Markets, Financial Accounting (FINANCIALACCOUNTINTINTINTINTING) (JEL - Group M - Business - Administration)
International Finance (by Jel - section in the group A International Economics).
Subject of modern finance theory
If until the XIX century the theory of finance developed as the theory of public finances, then in the XX century. She became the theory of capital markets, since their significance for the development of the economy increased sharply.
For example, in the "Money and Finance dictionary" McMillana says that the main focus of analysis in the modern theory of finance is the work of capital markets and the cost of financial assets. " The New Palgrave Dictionary of Money & Finance. ED. NEWMAN P. Milgate M. Eatwell J. 1-3. Macmillan. 1992.
Tools of modern theory of finance - Actuar Mathematics (financial mathematics), financial (V.T.C. banking) statistics, financial law, financial programming.
The reason is two trends.
Mathematicalization of the economy, i.e. The description of its laws in the model form requires an accurate determination of its parameters, which, as a rule, have a value of money form.
The use of theoretical results in the practice of managing economic processes (business administration) and in economic policies requires an increase in the accuracy of the model description of cash flows and assessing the risks of the theoretical models.
Evolution of financial theory
This is one of the most important, complex and controversial economic categories. The correct understanding of the essence of this category is very important. It allows you to form a financial sphere and implement financial management adequately to the level of development of the national and international economy. Finance have both apparently and a little hidden form of manifestation.
The visibility of finance is manifested in cash flows, which move between subjects of financial relations, form the content of funds providing economic transactions. The hidden side of the concept of finance is associated with exchange and distributional relations that arise during the formation, distribution and redistribution of the existing gross domestic product.
Study of Finance Development Problems
The study of theoretical problems of finance development, clarifying the economic essence of finance devoted their attention to many leading domestic and foreign scientists-economists. At the same time, many aspects of finance theory are not sufficiently covered today. This is due to the fact that the field of finance is developing in parallel with the development of the global economy. Globalization processes that have covered the world economy recently, the creation of information economics models in the most developed countries of the world, inevitably bring new aspects of financial relations that were not previously observed. Evidence of the acquisition of human awareness of phenomena and processes occurring in the financial sphere is the global financial crises of 1998 and 2007. Therefore, research concerning the establishment of the deep essence of finance is and will always be relevant.
Today, among scientists there is no unity regarding the interpretation entities of Finance and the functions of the finance that they perform. It is possible, for example, to notice the existing disagreements in views on the concept and essence of finance in foreign researchers who used various approaches to finance research, in particular their consideration on the macro and microeconomic levels. Most of these scientists at the macroeconomic level were mainly focused on the fiscal aspect of finance.
Another part of foreign scientists conducted research on micro levels, in particular they studied finance firms, enterprises. These scientists interpret the term "Finance" as a set of specific tools and techniques with which you can form funds of funds in the enterprise. So, according to E. Nikbacht and A. Gropelley, finance is the use of various techniques to achieve maximum welfare of business or the total cost of capital, which is invested in the case.
Of course, these narrow fins of finances undoubtedly reflect the individual essential aspects of the underlying economic category, but do not disclose its essences at the general level.
Regarding the domestic features of financial science, there are several approaches here. A sufficiently common among a significant part of domestic scientists is the so-called distribution concept of finances. For example, M. Romanovsky, a well-known representative of the St. Petersburg Financial Financial School, for the macro-level formulates this as follows: "The connection of two foundations - states and taxes in cash formulates the so-called - the phenomenon of public finances, with all the attributes inherent in them, such as: taxes, The state budget, as well as public debt. Public finances are a combination of redistributive monetary relations regulated by the state and related to the formation and use of basic (public) cash funds (income), which are necessary to the state to further fulfill their functions. We are acknowledgment in fact of this concept. The definition of V.M. Oparin "Finance is a set of economic relations that are associated with the exchange, or distribution and redistribution in the cash value of the gross domestic product (GDP), and under certain conditions of development and national wealth." On the micro level, to the frame X of the same approach, consider the concept of "finance of enterprises", under which the combination of economic relations, closely related to the movement of cash flows, their subsequent formation, distribution and use of the enterprise's received income and cash funds in the process of economic activity.
Interpretation of Definition - Finance
You can give some more similar definitions that are given in financial literature, in particular, the following are noted. features of Finance:
The concept of finance is a combination of objectively caused links, economic relations with a distributional nature, a special monetary form of expression, materialized in cash aggregate incomes and accumulations that accumulate and focus in state structures and business entities with the aim of expanded reproduction, as well as material incentives for employees. , satisfying the various social needs of society.
Some other aspects of the concept of "finance" are allocated in such definitions.
Finance is a business element related to the involvement, distribution and use of financial resources obtained to ensure entrepreneurial activities.
Finance - in their essence, are an integral part of cash relations, an economic tool for the distribution and redistribution of the entire gross domestic product and national wealth, an instrument for the education and targeted use of cash funds.
From the above list of definitions of the concept of "finance", which are given in domestic literature, one can make a summary conclusion that the category "Finance" is mainly interpreted as economic relations related to the creation, distribution and redistribution of GDP in cash. Relationships of such a plan are determined by financial law and, obviously, it is too narrowly to understand the essence of money throughout the spectrum of possible aspects. Therefore, it is not surprising that a number of authors noted the staticity of the distribution concept, while one of the characteristic signs of the financial sphere is the dynamics, and the movement of funds. And it is difficult to disagree with them.
Without a doubt, as a result of economic transactions, which were accompanied by the movement of funds, certain economic relations arise between participants. But the financiers are those specialists who know how not only to take into account the norms of financial law, but also within these norms to regulate and measure the streams of funds on the macro, and of course on the micro level. Relations arising from this is a consequence of interaction between business entities, the state, but they are difficult to evaluate quantitatively.
Summarizing the existing positions, you can formulate the following definition of the concept of finance. Finance is Adjustable in a specific legal field using special methods, special techniques and tools for funds measured in a monetary equivalent circulating in the national economy through the funds created on the macro and micro levels and, ultimately, ensuring the implementation of the processes of formation, distribution, redistribution of GDP, national income and national wealth and accompanied by the emergence of economic relations between all participants in these processes
- Finance (FR. Finances - cash) in Russian scientific and educational literature are defined as a set of economic relations arising in the process of formation, distribution and use of centralized and decentralized funds funds. Usually we are talking about the target funds of the state or economic entities (enterprises).
An important element of finance is the category of resource allocation. This category is ancient and exists since the time of dawn of human society. For example, in primitive society, the hunters scored a mammoth, but shared with the rest of the tribe (women, old men, children), which directly in the hunt did not take part - such a relationship system based on the distribution of resources contributed to the formation of human society, without which it would be impossible Civilization and statehood systems. In the modern state, they are already divided into financial resources, and the system of their distribution is still under the head of the corner. The distribution does not necessarily imply a gratuitous nature of obtaining financial resources - on the contrary, the distribution is understood as Mena, the exchange of heterogeneous resources. For example, the pensioner gave his many years of work and carried out deductions to the social funds of the state, and the state to achieve a citizen of a certain age distributes new arrivals of future retirees and pays them to real pensioners. Many historical figures speculated on the concept of distribution in relationships with such categories as justice, equality or, on the contrary, inequality because of which a multitude of interpretations of the term distribution of resources in the theory of finance were formed.
In Western scientific and educational literature, general definitions of finances are usually not allowed, finances are treated quite widely. It is usually specified, what finances we are talking about: public, corporate or personal finances. Under public finances understand the process and mechanism for the formation and use of state resources, the balance of income and expenses, as well as the relevant control methods. Under corporate finances imply "proper money management" or "art and science of money management". Thus, the terms "Financial Management", "Management Finance", "Corporate Finance" and "Business Finance" are almost equivalent and are interchangeable. Under the theory of Finance, the theories of arbitration pricing, capital structure, portfolio theory, the theory of pricing of financial assets, options and other theories, founded by Markovitz, W. Sharp, R. Merton, F. Modigliani, M. Miller, J. Tobin, A . Blake and others.
Under Financials also understand the economic science and discipline that studies the relevant scope of economic relations.
The word finances are often used in everyday life to designate money.
The term financing means the supply (provision) of cash.
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The word "finance" heard everything. Many are sure that it is just money and that's it. But the essence of this word is somewhat deeper than money.
1. What is finance simple words
Finance (from lat. "Financia" - cash, income) is a set of material resources. What finances can belong to a physical face, business, state. On the household level for each of us finances of course mean "money".
There are many other definitions. For example:
- Finance is a combination of economic relations arising in the process of formation, distribution and use of various cash funds.
- Finance is money in motion
There is also a verb " to fund"Means" supply money. "
In science, there is a whole discipline Finance, which studies money and socio-economic relations associated with the formation, distribution and use of material resources. Financial management of the Bank is studied within science banking. Financial markets studies science financial economy.
Financial resources are all possible accessible tools that are available to highlight money.
Finance can be divided into conventionally in two types
- State / municipal
- Personal / family
2. Functions of Finance
Finance has a number of important functions, without which no economy could work.
- Distribution. Money is distributed to different industries and sectors so that everyone worked and create goods.
- Control. Control the processes and development of the economy.
- Stabilizing. Maintaining stability in the country and life of every person
- Regulating. Guidance of order in society
- Stimulating. For good work, ideas and so on - as you know well.
- Investment. Financing of developing and necessary projects
Key Financial Management Authority - "Ministry of Finance". In his task enters
- Drawing up the budget of the country.
- Redistribution of funds between different sectors.
- Federal budget
- Drawing up methodologies for accounting, auditing and reporting within the Russian Federation
- Development of laws related to financing.
3. Financial markets and services
In society, it is customary to share the following financial services.
- Banking services
- Investment Banking Services
- Insurance services
- Leasing services
- Factoring services
We give the definition, without which the final review would be not complete.
The financial market is a conditional designation of a place for trade in financial assets (most often due to the stock exchange). There are the following markets:
- The money market is the process of receiving money on credit or on the contrary, the opening of the contribution. Simply put this market of money and obligations
- Securities Market or Stock Market - Trade in the most popular and liquid paper: stocks, bonds, futures, options (can not be called valuable paper, but its acquisition is directly related to the supply of real stocks)
- Bond market
- Currency market
- Insurance market
- Toparies
- Raw market
- Futures market
4. Financial investment
The country's economy cannot properly function without cash flows, injections. Finance is funds to achieve good. In this chapter, we will look at the options for investing a private person. In more detail, the issue of investment is considered in a special article in what to invest.
The modern world offers many opportunities for investors where you can invest. There are guaranteed options with a small income, but with missing risk, there are more risky options where you can earn and lose. Investor, unlike his goals and a mind, chooses the market independently suitable for him. For example, it became fashionable to retire or create a passive income.
So, for a private person, good investments are:
1 company shares. Traditionally, it is believed that the shares are the most profitable tool. Due to the increase in the cost and income from dividends, it is possible to count on fairly stable results in long-term expression. For example, you can look at the MICEX index schedule. It can be seen that for all time he still grows despite difficulties in the economy after sanctions.
2 bonds. The most reliable and stable source of earnings. Risks are practically absent. And if we are talking about the OFZ, you can call them the most reliable source of saving money for citizens. Not paying a coupon on OFZ is equivalent to default.
You can buy promotions and bonds on the MICEX stock exchange. To access the stock exchange, you must open an account with a brokerage company. I work myself and recommend all the following brokers:
These are the two best brokers for trading on the MICEX, which provide services to the greater half of all traders in Russia. They have the best conditions, the lowest commissions for trade, there are offices throughout Russia, a major customer support service. Here you can buy American stocks, follow the strategies of professionals and so on.
3 PIFES. If there is no time to deal with trade yourself, then you can invest money in the finished fund (FIF), which will be engaged in money. It is risky, but as practice is profitable.
Pyfov has a significant drawback that they take a commission for managing. Plus, moreover, statistics show that 95% of funds loses to conventional investment in stock indices. Now investors have excellent opportunities to invest in ETF funds, which are an index fund. It is worth such an exchange fund 1000-3000 rubles, which is quite accessible to ordinary investors. ETF has an ETF, but it is no more than half apler.
4 Bank deposit. The option in order to attribute money to the bank to everyone. Especially to say nothing about bank deposits, because This is on the one hand reliable income, but low-visible. From the minuses it can be noted that the larger amounts put into the bank does not make sense, because Only 1.4 million rubles are insured, as well as what it is impossible to remove money at any time without losing interest. This imposes not the most convenient conditions in the event of an urgent need of finance.
We reviewed the most liquid options. It remains to highlight more options that are distinguished by reliability, but on the other hand the complexity is on sale.
5 Business, real estate. Real estate investments have always been considered the most reliable. This is definitely so. However, it is sometimes extremely difficult to sell the object, especially at the average market price during periods of crisis. It is also worth noting the low profitability of the purchase. When renting an income will be at the level of 5-7% without taking into account that the object may require some other repairs costs.
With business even more difficult in terms of risk. It is impossible to predict success in advance. Buying a finished business will cost expensive.
See also the video "What is finance, money, investment":
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Aval
A bill of interest in respect of which the bill of interest is applied. This guarantee means a guarantee of a full or partial payment by Tratta, if the debtor did not fulfill its obligations on time. Aval is given on the front side of the bill and is expressed in words: "count for Aval" or any other similar phrase and signed by the Avalist. Aval is given for any person responsible on the bill will be the bill, so the Avalist should indicate who he gives sure. In the absence of such an instruction, Aval is considered issued for the drawer, i.e. Not for the debtor, but for the lender. The Avalist and the face for which he is entrusted to carry solidarity. Paying bills, the Avalist acquires the right of the reverse claim for whom he issued a guarantee, as well as to those who are obliged before this face.
Prepaid expense
The amount of money issued to the upcoming payments for material values, work performed and services rendered.
Avizo
In banking, commercial, accounting practice - the notice sent by one counterparty to another, about changes in the state of mutual settlements or the transfer of monetary sums, sending goods. Avizo, as a document, is legal.
Assets
The property of enterprises, which includes fixed assets, other long-term investments (including intangible assets), working capital, financial assets.
Acceptance
The consent of the obligated person to pay the payment request and thus make calculations provided for by the contract with the product supplier. The acceptance form of calculations implies presentation to pay for the payment of the payment request supplied by the supplier of goods.
Excise
Indirect tax included in the price of goods and paid by the buyer. The law of the Russian Federation establishes the procedure for calculating the soldiers of the realized wine-vodka products, ethyl alcohol and food raw materials (except for the production of alcoholic beverages and wine products, beer, tobacco products, tires, cars, cargo vehicles with a carrying capacity of up to 1.25 tons, jewelry, Diamonds, products from crystal, carpets and carpets, fur products, as well as genuine leather clothing).
Shares
Securities manufactured by joint-stock companies and pointing to the share of the owner (holder) in the capital of this company, giving the right to their owner to receive profits in the form of a dividend, as well as, depending on the type that can give the right to vote at the general meeting of shareholders (simple nominal) . This type of equity securities is not issued by government agencies, they are issued only by industrial, trade and financial corporations. The price for which the action is implemented on the market is called a campaign.
Audit activities
Activities of independent private financial control. Audit (independent financial control) carry out specialized audit firms and services. Control and consulting services Audit firms provide all enterprises and organizations on a fee. Auditing firms are independent organizations designed to help improve the quality of control, its objectivity.
Correspondent banks
Banks that perform on the basis of a correspondent contract of commissioning each other by payments and calculations through specially open accounts or through accounts of correspondent banks in the third bank.
Bank guarantee
A written obligation given by the Bank or another credit institution, or an insurance organization (guarantor) at the request of another person (principal), to pay the creditor of the Principal (Beneficiary) in accordance with the terms of the guarantee of the obligation given the Monetary sum on the submission of a written request for its payment. The banking guarantee ensures proper performance by the principal of its obligations to the beneficiary (the main obligation). For issuing a bank guarantee, the principal pays a guarantor a remuneration. The bank guarantee comes into force from the date of its issuance, if no other is provided in guarantees. The obligation provided for by the banking guarantee does not depend in relations between them from the basic obligation, to ensure the execution of which it is issued, even if the warranty contains a reference to this obligation.
Bank transfer
Order of one person (transient) Bank Translate a certain amount in favor of another person (transponder). The bank, who adopted a transfer order, performs it through its correspondent.
Bankruptcy
The inability of the debtor to meet the requirements of creditors for paying for goods (works, services), including the inability to provide compulsory payments to the budget and extrabudgetary funds.
Barter deal
Baby, but estimated and balanced exchange of goods, issued by a single contract (contract).
Non-cash payments
Calculations between organizations produced by transferring the amount of the amount from the account of the debtor's organization to the account of the creditor's organization on settlement documents in non-cash order. Payments can be made with the consent (acceptance) of the payer and on his instructions.
Stock Exchange
Commercial enterprise, a regularly functioning market of homogeneous goods with certain characteristics.
Stock Exchange
Organized and regularly functioning market for the sale of securities. The main functions of the stock exchange are mobilization of temporarily free money through the sale of securities and the establishment of the market value of securities.
Budget
Form of education and spending fund of funds intended for financial support for the tasks and functions of the state and local self-government; The economic category submitted by monetary relations arising from the state with legal entities and individuals on the redistribution of national income in connection with the formation and use of the country's budget fund designed to finance the national economy, socio-cultural needs, the needs of defense and government.
Consolidated budget
Core budgets of all levels of the budget system of the Russian Federation in the relevant territory.
Budget deficit
Excess budget expenditures over its income.
Budget revenues
Cashs entering free and irrevocable procedure in accordance with the legislation of the Russian Federation at the disposal of state authorities of the Russian Federation, the state authorities of the constituent entities of the Russian Federation and local governments.
Budget surplus
Exceeding budget revenues over its expenses.
Budget costs
Cash, directed to the financial support of the tasks and functions of the state and local self-government.
Budget painting
A document on the quarter distribution of income and budget expenditures and revenues from the sources of funding for budget deficit establishing the distribution of budget allocations between budget recipients and components in accordance with the budget classification of the Russian Federation.
Budget system
Based on economic relations and legal norms, the set of all types of budgets in a country with interconnection established by the law. The unity of the budget system is based on the interaction of budgets of all levels carried out through the use of regulatory income sources, the creation of target and regional budget funds, their partial redistribution. This unity is implemented through a single socio-economic, including tax, policies.
Budget system of the Russian Federation
Founded on the economic relations and state structure of the Russian Federation, regulated by the norms of the right, a combination of the federal budget, budgets of the constituent entities of the Russian Federation, local budgets and budgets of state extrabudgetary funds.
Budget loan
Budget funds provided to another budget on the return, gratuitous or reimbursive basis for a period of no more than six months within the fiscal year.
Budget structure
Established on economic relations and legal norms, the set of all types of budgets in the country. The main document in the construction of the budget system is the Constitution of the Russian Federation.
Budgetary Law of the Russian Federation
The combination of legal norms (mandatory rules of conduct), distinguishing the sphere of various budgets (for example, regional, regional, urban, district, rural, settlement), which determine the powers of individual state authorities in the publication of the budget law regulating the procedure for the preparation and execution of this law.
Budget regulation
The system of redistribution of funds, consisting in the transfer of part of the resources of the higher budget of the Northstairs in order to balance purposes. The regulation mechanism includes: subsidies; subventions; Regulatory income sources. Budget regulation is an integral part of the budget process.
Budget device
The totality of the principles on which the organization of the budget system is based.
Budget Assignments
Budget funds provided for by the budget painting to the recipient or manager of budget funds.
Budget Credit
The form of funding budget expenditures, which provides for the provision of funds to legal entities on the return and compensation funds.
Budget process
The activities of state authorities, local governments and participants in the budget process on the preparation and consideration of projects of budgets, project budget projects and budgets and budgets of state extrabudgetary funds, as well as the management of state extrabudgetary funds, as well as on controlling their execution, and the budgets and budgets of state extrabudgetary funds.
Currency
The monetary unit used to measure the value of the goods, the concept of "currency" is used in the values: a monetary unit of a given country (US dollar, Japanese yen), monetary signs of foreign countries, as well as credit and payment resources used in international settlements, and international Regional) monetary settlement unit and payment facility (translated ruble, euro).
Free-convertible currency
Currency, free and unlimited exchanged on other foreign currencies.
Currency calculations
The system of organization and regulation of payments for monetary requirements and obligations in foreign currency arising from external economic activity. Calculations can be cash and on credit, i.e. With installments pay. Cash payments represents full payment of goods up to date or at the time of the transition of goods or commodity-based documents at the disposal of the buyer. Calculation on credit or calculation with installment payment has two forms: a commercial loan (exporter's exporter loan) to the issuance of advances to the importer exporter.
Exchange rate
The price of a monetary unit of this national currency, expressed in the currency monetary units of another country.
Bill
Security paper certifying no reason for the obligation of the bill stage (a simple bill) or another payer specified in the bill (transfer bill) to pay the money provided for by the exchange amount provided for by the exchange amount, the relationship of the bill on the bill is regulated by law on the transfer and simple bill. The Law of the Russian Federation "On the Monetary System of the Russian Federation" (Art. 13) considers the bill of exchange document used in non-cash settlements. Russia adheres to a "uniform bill of exchange law", adopted in 1930 in Geneva.
Bill loan
Credit issued by setting out a transfer bill on the importer, which accepts it to receive shipping and payment documents.
Extrabudgetary funds
The specific form of the redistribution and use of financial resources involved to finance some social needs and comprehensively used on the basis of organizational independence of funds.
State loans
The credit relations between the state and legal entities and individuals, as a result of which the state receives certain amounts of funds for a certain period of time for a certain fee, are carried out in the form of the sale of government securities, loans of extrabudgetary funds and in order to receive loans from banks.
Public spending
Part of the financial relations, which is due to the use of state's income in connection with the implementation of its functions: security; defense; foreign economic relations; social; Management.
Public Finance
Monetary relations on the distribution and redistribution of the value of the social product and part of the national wealth associated with the formation of financial resources at the disposal of the state and its enterprises and the use of public funds on the costs of increasing production, satisfaction of the socio-cultural needs of society, the needs of defense and management. The revenues of the state budget consist of many sources and revenues. The combination of all types of government revenues, which is formed by various methods, is a system of state revenues.
State extrabudgetary fund
The form of education and spending of funds formed outside the federal budget and budgets of constituent entities of the Russian Federation.
State Credit
Monetary relations arising from the state with legal entities and individuals in connection with the mobilization of temporarily free funds at the disposal of government bodies and their use to finance government spending.
Devaluation
A decrease in the course of the national or international (regional) monetary unit in relation to the currencies of another country. Very often, devaluation reflects the impairment of currency funds as a result of inflation.
Denomination
Enlarging the national monetary unit by exchange for the established relationship of old monetary signs to new in order to streamline money circulation, facilitating accounting and settlements in the country with simultaneous recalculation (in the same ratio) of prices, tariffs, wages, etc.
Depositary
An organization leading depository activities.
Depository activities
Providing security services (deposit) securities, as well as "maintenance of securities", i.e. Implementation of the assignments of the Depositor for the realization of rights certified by securities.
Depart
Exchange transaction for the period concluded on the Stock Exchange based on a decrease in the course of securities in order to obtain a course difference.
Deflation
Seating by the state from the appeal of the part of the excess cash in order to reduce inflation.
Bank deposit agreement (deposit)
The contract for which one Party (Bank), who adopted from the other side (depositor) or the amount received for it (contribution), undertakes to return the amount of the contribution and pay interest on it under conditions and in the manner prescribed by the Treaty. The bank deposit agreement in which the contributor is a citizen is recognized as a public contract. The Rules on the bank account agreement, unless otherwise provided by the rules of this chapter, are applied to the relations of the bank and the investor in the account, unless otherwise provided by the rules of this chapter or does not follow.
Bank account agreement
The contract for which the Bank undertakes to accept and enroll incoming to the account, an open client (account holder), cash, carry out the order of the Client about the listing and issuing appropriate amounts from the account and conduct other account operations. The bank can use cash on the account, guaranteeing the client's right to unhindered by these means. The bank is not entitled to identify and control the use of customer's funds and establish other bank accounts not provided by law or a bank account restriction of its right to dispose of cash at its discretion.
State loan agreement
The contract, according to which the borrower is the Russian Federation, the subject of the Russian Federation, and the lender is a citizen or a legal entity. State loans are voluntary. The State Loan Agreement is by acquiring a lender issued state bonds or other state securities certifying the right of the lender to receive funds from a borrower or, depending on the terms of the loan, other property, established percentage or other property rights in the terms provided for in the Terms Release loan in appeal. Changing the conditions of the loan released into circulation is not allowed. The rules on the state loan agreement are applied accordingly to loans produced by municipal education.
Loan agreement
Agreement on which one party (lender) transfers to the property to the other party (borrower) money or other things defined by generic signs, and the borrower undertakes to return the leader the same amount of money (the amount of the loan) or an equal number of other things and the same kind and Quality. The loan agreement is considered concluded from the moment of transferring money or other things. The loan agreement between citizens should be concluded in writing if its sum exceeds at least ten times the minimum wage established by law, and in the case when the lender is a legal entity - regardless of the amount. In confirmation of a loan agreement and its conditions, a borrower's detection may be presented or another document certifying the transfer of a certain amount of money or a certain number of things.
Contract of guarantee
The contract for which the guarantor is obliged to respond to the creditor of another person to respond to the fulfillment of its obligations fully or in part. The guarantee agreement can also be concluded to ensure the obligation that will arise in the future. The contract of guarantee should be performed in writing. Failure to comply with the written form entails the invalidity of the contract of guarantee. In case of failure to fulfill or improperly executed by the debtor, the obligations provided by the obligation, the guarantor and the debtor respond to the lender jointly, if the law or contract of the guarantee is not provided for the guarantor's subsidiary responsibility.
Duty state external
Debt Obligations of the Government of the Russian Federation to foreign countries or international organizations, expressed in foreign currency.
Duty state internal
The debt obligations of the Government of the Russian Federation, expressed in the currency of the Russian Federation, before legal entities and individuals, unless otherwise established by regulatory acts of the Russian Federation. Legal forms of debt obligations are loans received by the government, government loans obtained through the issuance of securities on behalf of the Government of the Russian Federation, other debt obligations guaranteed by the Government of the Russian Federation.
Debtor enterprise debtor
A company that does not fulfill or in the near future will not be able to fulfill its obligations to creditors. The legislation of the Russian Federation introduced the concept of an insolvent debtor (bankrupt).
Subsidies
Budget funds provided by the budget of another level of the budget system of the Russian Federation on the gratuitous and non-refundable basics to cover current spending.
Fastened income
Revenues that are fully or partially transmitted to a certain type of budget.
Pledge
Civil law, giving the right to a creditor on a secured pledge obligation (mortgagee) in the event of non-fulfillment by the debtor of this obligation to obtain satisfaction from the value of the laid property mainly to other creditors. The pledgee has the right to receive at the same beginning to satisfy from insurance compensation for loss or damage to the laid property, regardless of whose benefits it is insured, unless loss or damage occurred for reasons for which the mortgagee responds. The key to land plots, enterprises, buildings, structures, apartments and other real estate (mortgage) is governed by the Mortgage Law. Pledge arises due to the contract. The pledge arises on the basis of the law upon the occurrence of the circumstances specified in it.
Investment fund
The mediator, which by the issue of the Central Bank attracts privatization certificates and funds of citizens for their subsequent investment in the objects of privatization, real estate and the Central Bank of other joint-stock companies. There are investment funds of open and closed types. Open-type investment funds sell their Central Bank with the obligation to redeem them at the first requirement of investors. Investment funds of a closed type carry out the release of their Central Bank with the obligation to redeem them at the end of the term that the foundation established.
Investors
Business entities (government bodies sending funds for coverage of urgent and long needs), persons who own securities belong to the right of ownership (owners) or other things (owners).
Endorsement
Its essence is that on the back of the bill or an additional sheet (Алльженже), a transfer inscription is made, through which another person together with the exchange is transferred to the right to receive payment. The person transmitting an empowerment bill is called an indorse station, and received by the Industo. The transfer of bill of exchange is called an indexed or endorsement. The endorsement may be made in favor of any person, including even in favor of the payer or a drawer. It must be simple and no condition. Partial endorsement, i.e. The transfer of only parts of the amount of the bill is not allowed. The endorsant is responsible for acceptance and payment. He can take off responsibility by the inscription "without turnover on me."
Collection
The form of calculations in which the bank (bank-issuer) undertakes on behalf of the Client to carry out an action on receiving the payment from the payer and (or) of the acceptance of the payment. The bank-issuer who received the client's instructions has the right to attract a different bank (executing bank) to fulfill it. The procedure for making calculations for collection is regulated by law established in accordance with the banking rules used in the banking practice of business turnover.
Limitation of actions
Term to protect the right on the claim. whose right is broken. The total limit of limitations is established in three years. For certain types of requirements, the law may establish special limitations for the limitation, abbreviated or longer compared to the total period. The limitation, in particular, does not apply to the requirements of depositors to the bank on issuing deposits.
Commercial banks
Private and state banks carrying out universal lending operations of industrial, shopping and other enterprises, mainly due to the cash capital they receive in the form of deposits.
Commercial credit
Credit provided in trade form by sellers to customers in the form of a delay of payment for sold goods. It is provided for the obligations of the debtor (buyer) to pay off within a certain period as the amount of the principal debt and accrued interest. Allocate the five main ways to provide a commercial loan: a bill way; open account; discount subject to payment for a certain period; seasonal loan; Consignment.
Competitive Mass
The property of the debtor, which may be recovered in the process of competitive production.
Competitive production
The procedure aimed at the forced or voluntary liquidation of an untenabolic enterprise (ie bankrupt).
Competitive creditor
A physical or legal person who has property requirements for the debtor and is not a carrier of mortgage rights.
Consignment
The method of lending at which the retailer can simply get commercy-based values \u200b\u200bwithout commitment. If the goods are sold, then the payment will be carried out and the manufacturer will be carried out, and if not, the retail merchant can return the goods to the manufacturer without paying a penalty. Consignment is usually used in the implementation of new, nonypical goods, the demand for which is difficult to assume. An example is the practice of producing and selling new textbooks for institutions. Book publishers send their books in bookstores at institutions with the condition of their return if they are not sold.
Credit contract
The contract for which a bank or other credit organization (creditor) undertakes to provide cash (credit) borrower in the amount and on the conditions provided for by the Treaty, and the borrower undertakes to return the amount of money and pay interest on it. The loan agreement must be concluded in writing. Failure to comply with the written form entails the invalidity of the loan agreement. Such an agreement is considered insignificant. The lender has the right to refuse to provide a borrower provided for by the loan agreement in whole or in part in the presence of circumstances apparently testifying that the amount provided by the borrower will not be returned on time. The borrower has the right to refuse to receive a loan in a fully or partially, notifying the creditor to the period established by the term of its provision, unless otherwise provided by law, other legal acts or a loan agreement. In case of violation by the borrower provided for by the loan agreement, the obligations of the target use of the loan, the lender is also entitled to abandon further lending to the borrower under the contract.
Leasing
It is a special form of financial investments on the purchase of equipment, long-term goods or real estate goods. Participants in leasing operations are usually three sides: the company is the manufacturer of the leased object; Leasing Company - Landlord; And also the enterprise is a tenant (lessee).
Broker
The mediator at the conclusion of transactions on stock and commercial exchanges, which acts on the instructions of customers and during their account.
Minimum budget security
The minimum permissible value of state or municipal services in monetary terms provided by state authorities or local governments per capita at the expense of the relevant budgets.
Minimal State Social Standards
Public services, the provision of which citizens at gratuitous and irretrievable funds by funding from the budgets of all levels of the budget system of the Russian Federation and the budgets of state extrabudgetary funds are guaranteed by the state at a certain minimum permissible level throughout the Russian Federation.
Tax
Compulsory, individually gratuitous payment, charged from organizations and individuals in the form of alienation of ownership of them on the right of ownership, economic management or operational management of funds, in order to financial support for the activities of the state and (or) municipalities. Tax signs: Forced nature; Dividing; Institute ofquivalence.
Tax inspections
Operational Financial Control Bodies. Heads the tax authorities by the Ministry of Taxes and Racing of the Russian Federation. Tasks of tax services are: a) control over compliance with tax legislation, ensuring the completeness and timeliness of submission to the budget of tax payments; b) implementing the inspections of the financial condition of enterprises and organizations, regardless of the departmental subordination and their organizational and legal form; c) control over the correctness of determining taxable profits (income) in order to prevent its understatement; d) registration of all subjects, as well as real and potential tax objects; e) accounting, assessment and implementation of confiscated, incomplete property, property transferred to the state, treasures. Tax inspections have the right to: to receive the necessary documents and information in the organizations of various forms of ownership, with the exception of those that make up a commercial secret, determined by the legislation; monitor compliance with the legislation on the entrepreneurship of citizens; examine all the premises used to extract income; suspend all the operations of enterprises and citizens in case of failure to submit documents; Cemphing documents testifying to income concealment; apply sanctions and penalties; Claims and arbitration claims for the liquidation of enterprises, recognition of transactions invalid.
Real Estate (Real Estate, Real Estate)
Land plots Plots of subsoil Other objects and all that is firmly connected with Earth that there are objects, the movements of which without disproportionate damage to their purpose is impossible, including forests of many years of planting of the building of the structure. Real-statements are also subject to state registration of air and sea vessels, internal navigation vessels, space objects. The law to real estate can be attributed to other property.
Penalty (fine, penalty)
The monetary amount determined by law or the contract is obliged to pay the lender in the event of non-fulfillment or improper fulfillment of the obligation, in particular in the event of a delay. At the request of the payment of the penalty, the lender is not obliged to prove damages to it. The lender is not entitled to demand the payment of a penalty if the debtor is not responsible for non-fulfillment or improper fulfillment of obligations.
Bonds state
Securities issued by the state in order to attract part of the borrowed funds to the state budget. The revenues received from state securities as opposed to corporate securities have a preferential taxation. Currently, the Ministry of Finance of the Russian Federation on behalf of the Government of the Russian Federation is involved in short-term borrowed funds of legal entities and the population under bond loans. The most common short-term loan is a loan for the issuance of state short-term ulter-free bonds (GKO).
Corporate bonds
Bonds for mortgage (provided by physical assets) Related bonds (directly long obligations not creating property claims to the corporation) bonds under the establishment of other securities of the company (provided by shares or debt obligations of the company) Convertible bonds (give the investor the right to buy ordinary shares of the same company At a certain price for a certain period), profitable bonds (percentage only when the income earned).
Bonds municipal
Available in order to mobilize funds for the construction or repair of public facilities: roads, bridges, water supply system, etc. are divided into the following types of bonds for a common obligation (supported by the integrity of the issuer) bonds under the income from the project (repaid due to the income from projects for whose financing they are issued).
Bond
Valuable paper certifying the right of its holder to receive from the person who has released a bond into the nominal value of the bond or other property equivalent. The bond provides its holder is also the right to address the interest fixed in it from the nominal value of the bond or other property rights.
Monetary obligations
Must be expressed in rubles. In a monetary obligation, it may be provided that it is subject to payment in rubles in the amount of the equivalent definite amount in foreign currency or in the conditional monetary units (ECU for example). In this case, the amount payable in rubles is determined at the official rate of the relevant currency or conditional monetary units on the day of payment if another course or other date of its definition is not established by law or agreement of the parties.
Overdraft
Negative balance at the current account of the client, which acquires the status of the loan, i.e. The form of a short-term loan provision of which is carried out by the write-off of funds on the Bank's account by the Bank over the remainder of funds on the account, resulting in a debit balance. When overdraft, all amounts credited to the current account are sent to the debt repayment, therefore the loan amount changes as funds are received, which distinguishes overdraft from conventional loans. Interest is charged by existing or agreed rates.
Option
The right to choose the method of fulfilling the obligation provided by one of the parties to the treaty, its conditions or the right to refuse to fulfill the obligation under certain conditions.
Optional loan
The loan with an option form of a loan or debt obligation at the creditor within certain limits is given the right to choose a repayment.
Propent
The face protruding with the offer.
Offer
Formal proposal to a certain person to make a deal with the indication of all the conditions necessary for its conclusion.
Passives
Obligations (with the exception of subventions of subsidies of own funds and other sources) of enterprises consisting of borrowed and attracted funds including accounts payable.
Translation Bill (Tratta)
Displays and sign the lender (tracer). He keeps the order to the debtor (RUSSATU) to pay within the specified period marked in the bill of the sum of the third person (Remitent).
Payment order
The instruction of the payer of the Bank to translate a certain amount of money to the person specified by the payer of the person in this or in another bank for the term provided by law or established in accordance with it if a shorter period is not provided for by the bank account agreement or is not determined by the customs turnover applied in the banking practice located on his account.
Policy
The insurance authority document confirming the presence of a concluded insurance transaction.
Duties
Monetary amounts that are levied by specially authorized institutions for perfect actions in favor of a pre-gun or individuals.
Company
Property complex used to carry out entrepreneurial activities. In general, the enterprise as a property complex is recognized as real estate. The company as a property complex includes all types of property intended for its activities, including land plots of building buildings, equipment inventory, raw materials Rights requirements, debts as well as rights to about meaning, individualizing enterprise its products, work and services (corporate name, commodity Signs, service signs) and other exceptional rights, unless otherwise provided by law or contract.
Profit (loss) from sales of products and goods
Determined as the difference between revenue from sales of products (works, services) in current prices without value added tax and excise taxes, as well as on its production and implementation
Simple bill (solo bill)
Disposable and signed by the debtor and contains its unconditional obligation to pay the lender a certain amount due to the term and in a certain place.
Regulatory income
Revenues that are intended to reinforce the lower budget by observing subordination. The list of fixed and regulatory income is recorded by special tax legislation and codes.
Reserves
Part of the financial resources that are intended to finance the needs arising unforeseen and directed both at simple and extended reproduction and consumption. Insurance reserves - part of financial resources aimed at reimbursement of damage to insured cases. Insurance Financial Reserves - Financial Reserves of Insurance Companies. These reserves are needed when current funds are missing for payments.
Decision on the release of securities
A written document registered in the state registration authority and containing data sufficient to establish the volume of rights certified by the security.
Ruble
Currency of the Russian Federation, legal means of mandatory for reception at a nucleational value throughout the Russian Federation.
Stocks and bods market
Part of the loan capital market where emission and purchase and sale of securities are carried out. Through the securities market (banks, special credit institutions and the stock exchange) are accumulated by de tender accumulation of legal, individuals and states and are sent to the production and non-production investment of capital. The primary securities market is distinguished where emissions and primary placement of securities and secondary where the purchase of previously released securities is made.
Savings
Legal and individuals accumulating funds due to the fact that costs are less accumulated funds focused on their hands in the form of personality or in banks in banks (population, enterprises and the state).
Savings (deposit) certificate
Valuable paper certifying the amount of the contribution made to the bank and the rights of the depositor (certificate holder) to receive the amount of the deposit amount and due to the interest certificate in the bank, issued a certificate, or in any branch of this bank. Deposits are to demand (give the right to withdraw certain amounts on the presentation of the certificate) and urgent (on which the seizure of the contribution and the amount of interest due) is indicated).
Collection
The obligatory fee charged from the organization and individuals is the payment of which is one of the conditions for the commission of fees to government agencies, local governments, other authorized bodies and official types of securities. Participants in the financial market Savings, investors, issuers.
Financial plan
The system set of measures for the material mediating of the functioning of the state. It is compiled for a period of 1 to 5 years and enters the budget. According to the form, the financial plan is a statement of goals, numbers and organizational proposals for the planned period. At the enterprise, planning is based on accounting of the law of value and at the same time planning acts as an economic category. Financial plans have all the links of the financial system of the enterprise and organizations that function at the commercial basis are the balance sheets of income and expenses, institutions carrying out non-commercial activities - estimates, cooperative organizations, public associations and insurance companies - financial plans, state authorities - budgets of different levels . The financial planning facility is the financial activity of business entities and the state, and the final result is the preparation of financial plans, ranging from the estimates of a separate institution to the consolidated financial balance of the state. Each plan defines income and expenses for a certain period, communication with the links of financial and credit systems (contributions of social insurance deductions, payments to the budget, bank loan fee, etc.). Financial plans are available from all links of the financial system of the enterprise and organizations that function on a commercial basis are the "balance of income and expenses", enterprises and organizations operating at a non-commercial basis are "estimation", the plan of public associations - "Financial Plan", state authorities Make up the "budget" (different levels of the central, local, subjects of the federation).
FinanoTtach
The number of profits received for invested resources. The main task is to reduce financial resistance and an increase in financial projects in public production. At the same time, it must be remembered that an important reserve of financial resources is the improved reproductive structure of financial resources of the public product.
Finance
The combination of objectively caused economic relations with a distributional nature, the monetary form of expression and materializable in cash income and accumulations formed in the hands of the states and business entities for the purposes of expanded reproduction, material incentives for working, satisfying social and other needs. The condition of functioning of finance is the availability of money, and the reason for the emergence of finance is the need for business entities and states in resources providing their activities.
Stock Exchange
A specialized organization that combines professional participants in the securities market, creating conditions for the concentration of supply and demand, as well as to increase the liquidity of the market as a whole. Exchange - then a certain organization of trade, which is subject to special rules and procedures. In the process of stock exchange trading assemblies, a market price (course) of the Central Bank is established by special methods, information about which, along with information about the volumes of perfect transactions, becomes the property of broad layers of investors. In this regard, the stock exchange can be asked to a sensitive instrument that signals the state of the stock market, and through it - about the state of affairs in the economy as a whole.
FORFUTING
Such a credit operation at which the exporter, receiving from importer acceptanced by the last traffic (translated bills), sells them with a discount bank or a specialized financial firm. At the occurrence of the payment time, the traffic importer usually repays its debt with semi-annual payments. Traditionally, large banks are engaged in lending to foreign trade companies on the basis of fortification. Resorting to Forfigentia, the exporter is able to additionally mobilize the means and reduce receivables. The exporter refers to the FORFUTINGA market if he fails to receive a guarantee of the Soviet Institute, or its foreign trade contract is not sufficiently creditworthy or its own financial position does not allow for a long time to distract funds.
Futures, or futures contract
Standard contract for the supply of goods in the future at the price determined by the parties when making a transaction.
Security
The document certifying the established form and obligatory details of property rights, the implementation or transfer of which is possible only upon its presentation. With the transfer of security, all the rights in the aggregate are transferred. In cases provided for by law, or in the established "procedure for the implementation and transfer of rights certified by the security, sufficiently evidence of their consolidation in a special register (ordinary or computerized). Securities include government bonds, bond, bill, check, deposit and Savings certificates, a bank saving book for bearer, a billion, an action, privatization securities and other documents that are classified as securities in accordance with the securities established by them. By purchasing a valuable paper, the investor can count on at least two types Income: investment and coursework.
Normal valuable
Securities for which information about investors must be available to the issuer in the register of securities owners.
Bearent Securities
Securities, the transition of rights to which and the implementation of certified rights does not require the mandatory identification of the name of the investor.
Securities appeal
Conclusion of civil transactions that entail the transition rights to securities.
Securities form release
The form of the issue of securities in which the investor is established on the basis of the presentation of a properly executed certificate of a security certificate or, in case of depositing such a certificate and account on the account of the depot.
Central banks
Banknotes issuing banknote and being credit system centers. They take a special place in it and are usually government agencies.
Receipt
Valuable paper containing an uncomplished disposal of the check of the bank to make the payment specified in it. As a payer on a check, only a bank can be indicated, where the check-in is the funds with which it has the right to dispose by issuing checks. Check feedback before the expiration for its presentation is not allowed. The issuance of the check does not repay the monetary obligation, in the execution of which it is issued. The shape of the check and the order of its completion are determined by the law and established in accordance with the banking rules.
Em session law
A combination of legal norms regulating the issue of money into circulation.
Emission
Issue in circulation of money signs. On the territory of the Russian Federation, the monopoly right of the issue in circulation of money signs belongs to the Central Bank of the Russian Federation.
Emirates
Legal entities that can produce securities. With the help of the financial market, cash accumulation of salaries are involved to invest in the development of production, the implementation of state and regional targeted programs and other needs. An objective prerequisite is the incomprehensibility of financial resources in business entities with the availability of sources of financial resources.
Entity
The organization, which is owned by economic management or operational management, separate property and is responsible for its obligations with these property, can acquire and carry out property and other non-property rights, to bear the obligations and the defendant in court. Legal entities must have an independent balance or estimate and be registered as a legal entity. Legal entities may be organizations pursuing the extraction of profit as the main goal of their activities (commercial organizations) or not authorized earmaries of profit as such a goal and not distributing the profit between participants (non-commercial organizations).
