Broker's job description. The main responsibilities of a broker Job description of a securities broker
1. GENERAL PROVISIONS
1.1. This job description defines the functional duties, rights and responsibilities of the Broker.
1.2. The broker is appointed and dismissed in accordance with the procedure established by the current labor legislation by order of the director of the enterprise.
1.3. The broker reports directly to the director of the enterprise.
1.4. A person who has a higher professional (economic) education without presenting requirements for work experience or secondary vocational (economic) education and work experience in the specialty for at least 2 years is appointed to the position of a Broker.
1.5. The broker should know:
Legislative acts, normative and methodological materials related to trade and economic activity; market methods of management, patterns and features of economic development; the conjuncture of the domestic and foreign markets; profile of a stock exchange, brokerage, other enterprise, institution, organization; types of exchange transactions; rules for negotiating the terms of buying or selling goods, rendering services; the procedure for setting the price of goods (services), payment and delivery; organization of trade, advertising, investment competitions, tenders and auctions; rules for compiling auction catalogs; foundations of social psychology; requirements for the product (service); the procedure for concluding contracts, drawing up and processing the necessary documents, established reporting, preparing information about the goods sold, the service provided; labor organization and management; civil and labor legislation; rules and norms of labor protection.
1.6. During the Broker's temporary absence, his duties are assigned to ___________________________.
2. FUNCTIONAL RESPONSIBILITIES
Note. The functional responsibilities of the Broker are determined on the basis and in the scope of the qualification characteristics for the position of the Broker and can be supplemented and clarified when preparing the job description, based on specific circumstances.
2.1. Buys and sells consignments of goods at auctions, cash markets or commodity derivatives markets, as well as securities and financial documents, including foreign currency, commercial services (credit, conclusion of labor agreements and contracts, transport services, sale of real estate, freight transportation, advertising, etc.).
2.2. Establishes business contacts between buyers and sellers of goods, customers and service providers.
2.3. Provides timely and on the most favorable terms the sale or purchase of goods, the conclusion of contracts for the provision of services.
2.4. Studies the conjuncture of the domestic and foreign markets, consumer properties of goods, the reliability of securities, the requirements of the participants in the transaction when buying or selling goods, providing services, as well as when concluding commercial (currency, credit) exchange transactions, different in degree of trust (commission agreement, commission agreement ).
2.5. Attends tenders and auctions, ensures the submission of the necessary data for the preparation of auction catalogs, the timely establishment of the sale price on behalf of the client and its change, as well as the transaction amount.
2.6. Negotiates the purchase or sale of non-auctioned items by private agreement.
2.7. Organizes the transportation of goods, sets the cost of delivery and formalizes the collection of its cost from the client.
2.8. Performs settlement and analytical operations and works on registration and execution of exchange documents, formulates the content of the application.
2.9. Advises clients on issues related to his competence.
2.10. Supervises the work of agents subordinate to him.
3. RIGHTS
The broker has the right:
3.1. Conduct civil transactions on their own behalf.
3.2. Execute and register exchange documents related to the operations performed.
3.3. Give instructions, tasks and orders to subordinate agents.
3.4. Attend tenders and auctions.
4. LIABILITY
The broker is responsible for:
4.1. Failure to fulfill their functional duties.
4.2. Inaccurate information about the status of the received tasks and orders, violation of the deadlines for their execution.
4.3. Failure to comply with orders, orders of the director of the enterprise, instructions and assignments of the head of the department.
4.4. Violation of the internal labor regulations, fire safety and safety rules established at the enterprise.
5. CONDITIONS OF WORK
5.1. The Broker's work schedule is determined in accordance with the Internal Labor Regulations established at the enterprise.
5.2. Due to operational needs, the Broker can be sent on business trips (including local ones).
Other instructions in the section:
informing clients about the progress and results of the implementation of their orders;
providing information on the degree of risk for specific transactions;
prioritizing customer transactions rather than their own dealer operations;
ensuring proper storage and accounting of clients' securities;
development and compliance with the rules for maintaining accounting registers.
2. Dealer activity. Execution of transactions for the purchase and sale of securities in its own name and at its own expense by publicly announcing the prices of their purchase and (or) sale with the obligation to purchase and (or) sell at announced prices. Dealer activity is the execution of transactions for the purchase and sale of securities on its own behalf and at its own expense by publicly announcing the purchase and sale prices of certain securities with the obligation to purchase or sell securities by the declared person. Dealer can only be entitythat is a commercial organization. In addition to the price, the dealer has the right to announce other essential conditions of the purchase and sale agreement, for example, the number of purchased securities, the period during which is valid fixed price etc.
A dealer's license can only be obtained by an organization (legal entity) engaged in commercial activities.
- 3. Trust management of securities.Implementation individual entrepreneur or by a legal entity on its own behalf and for a remuneration of trust management of securities and monetary funds transferred to it, but owned by another person, in the interests of this person or third parties chosen by this person (beneficiaries). Professional participants in the securities market who carry out their activities in the management of securities and the relevant agreements are called managers. If there is a conflict of interests between the manager and his client, which has led to damage to the client, the manager is obliged, after clarifying the reasons for guilt, to compensate for the losses in the manner prescribed by law.
- 4. Depository activitiesis the provision of services for storing certificates for securities and accounting for the transfer of title to securities. A person using the services of depositories is called a depositor. Only a legal entity can be a depositary. A depositary agreement is concluded between the depositary and the depositor, which determines the relationship between them. The conclusion of a depository agreement does not entail a transfer to the depository of ownership of the depositor's securities. Depositor's securities cannot be levied as a collection on the obligations of depositories. The form and content of the depositary agreement is subject to state regulation. As a rule, the depositary agreement should contain:
- An unambiguous definition of the subject of the contract,
- The procedure for the transfer of information about the deposited securities by the depositor to the depositary,
- · contract time,
- The amount and procedure for payment for the depositary's services,
- The form and procedure for reporting the depositary to the depositor,
- · Obligations of the depositary,
- · etc.
There are several types of depositories:
Settlement depository
carries out settlements in securities based on the results of clearing, all operations, and execution of transactions. At the same time, the functions of a settlement depository cannot be performed by a professional participant in the securities market, who combines depository activities with brokerage and management activities.
Custodian depository
this is a depository, the depositors of which are investors who do not settle securities based on the results of clearing and carry out transactions on transactions made through trade organizers on the securities market, i.e. it's out stock market valuable papers
Specialized depository
it is a legal entity with the status of JSC or LLC created in accordance with the legislation of the Russian Federation, licensed to carry out depository activities and activities of a specialized depository, investment funds, Mutual funds, and non-state investment funds. A specialized depository must keep records of property, records of rights to securities and a number of other functions.
In addition, two levels of depositories are distinguished: the upper one includes registering depositories (legally - registrars) serving issuers; bottom - serving the owners of securities.
Thus, the depository activity is the activity of recording rights to securities and their transfer, as well as the storage of securities certificates. Depositories (legal entities) carry out their activities on the basis of a license and are included as a separate institution in the RZB accounting system. A modern market with a huge number of transactions cannot exist without such institutions.
5. Activities related to maintaining the register of owners of securities. Its emergence is associated with the widespread development of paperless (electronic) technology for issuing stock instruments. Provided by the so-called. registrars (legal concept) who collect, record, process, store and provide information that constitutes the system for maintaining the register. The registrar can be the issuer itself or a professional RZB participant authorized by the issuer. The register of securities holders is part of the register keeping system. This is a list of registered owners of securities, indicating the number, par value, category of securities. This list is compiled as of a specific date. It allows you to identify the owners, number and category of securities. Combining register keeping activities with other types of professional activities is not allowed. Only a legal entity has the right to be a registrar for keeping the register. The registrar is responsible for the correctness of the register to the issuer. In this type of professional activity, there are intermediaries - these are transfer agents who are also legal entities and perform, under an agreement with the registrar, the functions of teaching and transferring to him or from him information and documents on the register.
The nominee holder of a security is a person registered in the registry system, who may not own the security. The nominee holder can be a legal entity of depository depositories. The data on the nominee holder is subject to mandatory entry into the register keeping system and he is also provided with reports on the ownership register. The legislation establishes certain rules, rights and obligations of the nominee holder.
6. Clearing activities. Determination of mutual obligations (collection, reconciliation, correction of information on transactions with securities and preparation accounting documents on them) and their offset for the supply of securities, as well as settlements on them (Article 6 of the Law "On the Securities Market"). It is carried out by organizations on the basis of a license from the Federal Financial Markets Service and agreements with participants in the RCB. Clearing activities are activities to determine mutual obligations, as well as settlements on transactions with securities. That is, it is collecting information, adjusting for transactions with securities and preparing accounting and financial statements on them. The fulfillment of obligations under the clearing pool trades is carried out in next order: after the transfer of securities, money for trading accounts, all this is carried out after verification and confirmation of the availability of a sufficient number of securities and funds on trading accounts to fulfill obligations. This is called delivery versus payment. The use of this method in clearing activities ensures the maximum reduction in the risk of default on obligations under securities transactions.
The clearing organization is obliged to form special funds to reduce the risks of non-execution of transactions. The size of the funds is agreed with the central bank RF and relevant organizations of state supervision and regulation of the securities market.
The Clearing Center performs clearing on trades executed through the trade organizer.
A clearing system is a set of procedures through which financial institutions and participants in transactions exchange data.
Continuous clearing is a real-time clearing that involves the immediate processing of exchange transactions.
Clearing members are persons in favor of whom clearing agreements have been concluded.
A clearing organization is prohibited from engaging in other professional activities on the RZB, with the exception of organizing trade and depository activities.
7. Activities for the organization of trade on the RCB. Securities are traded through specialized institutions, which include the so-called. trade organizers and stock exchanges. Their functions are to provide market participants with the opportunity to set quotations in the prescribed manner, make transactions in accordance with the approved rules, and carry out centralized settlements. At the same time, market participants receive certain advantages, for example, hedging (insurance) of their risks, the possibility of obtaining loans for transactions, etc.
In accordance with the Law "On the Securities Market", this is an activity for the provision of services that directly contribute to the conclusion of civil transactions with securities between participants in the securities market. civil transactions with securities between participants in the securities market. The organizer of trading on the securities market is obliged to disclose the following information:
- Rules for admitting a participant in the securities market to trading,
- Rules for concluding and reconciling transactions,
- · regulations registration of transactions,
- The procedure for the execution of transactions,
- Rules limiting price manipulation,
- · A list of securities admitted to trading.
Any interested person is provided with the following information about each deal concluded in accordance with the rules established by the trade organizer:
- The date and time of the transaction,
- Name of the paper,
- Its state registration number of the issue or identification number of the issue security,
- The price of one security,
- · The number of securities in the transaction.
The concept of "stock exchange" according to the law (Articles 9 and 11) is included in the concept of "trade organizer".
Legal entities licensed as a broker and (or) dealer and entitled to announce orders and make transactions with securities can participate in the auction. There are two types of special bidders who assume additional obligations. it market makersrequired to maintain the liquidity of the securities market, and specialists, obliged in a similar way to maintain the liquidity of the issuers' securities. On behalf of the bidder, announces orders and concludes transactions trader - an individual who is a regular employee of the exchange and has a qualification certificate from the Federal Financial Markets Service.
Professional activity at the RCB is carried out only on the basis of the FSFM licenses. There are three types of licenses: professional market participant, registrar, stock exchange.
FFMS regulations establish general requirements to professional participants of the RCB, as well as minimum requirements by the size of their equity capital, expressed in minimum wages: broker - 5000; dealer - 8000; auction organizer - 200,000; depository - 75,000; clearing organization - 100,000. When combining activities, equity capital should not be less than the largest for the combined types.
For consideration (issuance, renewal) of a license, license fees are charged, expressed in minimum wages: to a broker - 150; dealer - 200; trustee - 300; the organizer of the auction - 1000; depository - 300; the clearing company - 300. In any case, the paid license fee is not refundable. To obtain (renew) a license, a professional participant of the RZB must submit a package of documents to the self-regulatory organization, which, after its consideration, applies to the FFMS for an appropriate decision.
The terms for which licenses were issued: broker, dealer, trustee - no more than 3 years; a trade organizer - no more than 10 years, and when combined with other activities - no more than 3 years; register holders (registrar) - 6 months with subsequent extension by decision of the FFMS. Currently, licenses have become perpetual.
Tax regulationlies in the differentiation of the types and amounts of taxation of income arising in the securities market. Taxes can be levied: on income from the issue of securities, on interest and dividend current income, as well as on profits and commissions from securities resale operations. Current income by certain types securities are not taxed. In many countries, income from government and municipal bonds and financial instruments is not taxed.
Organization of tax regulation of the securities market in Russian Federation will be discussed below (topic 13).
Loan broker- an intermediary between the bank (banks) and borrowers. Loan broker finds the optimal, cost-effective way of financing client projects and actually replaces the bank's division that prepares client documents for closing the deal. This instruction credit broker suitable for an employee of an accredited brokerage firm.
Job description credit broker
APPROVED
General director
Surname I.O. ________________
"________" _____________ ____
1. General Provisions
1.1. The loan broker belongs to the professional category.
1.2. Appointment and release from the position of a loan broker is made
by order of the general director of the brokerage company.
1.3. The loan broker reports directly to CEO brokerage company.
1.4. During the absence of the credit broker, his rights and obligations are transferred to another official, which is announced in the order for the organization.
1.5. A person who has higher professional (economic, legal) education, experience in accepting and promoting loan applications (both legal and individuals) in banks, as well as work experience in the field of credit brokerage from 1 year.
2. Functional responsibilities of a credit broker
A loan broker performs the following job duties:
2.1. Provides services to clients in choosing optimal loan (mortgage
lending, car loans, lending to individuals, lending to enterprises).
2.2. Conscientiously and honestly fulfills customer orders and obligations under the service agreement, providing its customers best conditions execution of their orders (in the best way in accordance with the client's orders).
2.3. When concluding transactions, he has the right to act on behalf of the client and at his expense.
2.4. Brings to the attention of clients all the necessary information related to the implementation of their orders and the fulfillment of obligations under the service agreement.
2.5. Does not recommend lending transactions to clients without taking reasonable measures to ensure that they understand the nature of all the risks associated with them.
2.6. In the event of a conflict of interest, it immediately notifies the client of the occurrence of such and takes all necessary measures to resolve it in favor of the client.
2.7. Takes all reasonable steps to protect and maintain the confidentiality of customer information.
2.8. Before recommending a credit transaction to your client, a credit broker should carefully study:
- information about him financial situation (income, turnover, property, credit history, business, etc.);
- confirmation of authority to represent the interests of the organization (from managers and business owners).
2.9. Accompanies credit and financial transactions and post-credit services.
2.10. Interacts with financial structures and companies: banks, insurance, appraisal companies, real estate agencies, car dealerships, leasing companies, etc.
2.11. Warns clients about responsibility for providing false information to banks.
3. Rights of a loan broker
A loan broker has the right to:
3.1. To get acquainted with the projects of decisions of the company's management concerning its activities.
3.2. Submit for management's consideration proposals for improving the work related to the job responsibilities provided for in this job description.
3.3. Within the limits of their competence, inform the immediate supervisor about all deficiencies identified in the process of activity and make proposals for their elimination.
3.4. Request personally or on behalf of the management of the enterprise from the heads of departments and specialists for information and documents necessary to fulfill their job responsibilities.
3.5. Require the management of the enterprise to assist in the performance of their duties and rights provided for by this job description.
4. Broker's responsibility
The loan broker is responsible for:
4.1. Failure to perform and / or untimely, negligent performance of their duties.
4.2. Failure to comply with existing instructions, orders and orders for the preservation of commercial secrets and confidential information.
4.3. Violation of the rules of the internal labor schedule, labor discipline, safety regulations and fire safety.
4.4. Offenses committed in the course of carrying out their activities - within the limits determined by the current administrative, criminal and civil legislation of the Russian Federation.
4.5. Causing material damage - within the limits determined by the current labor and civil legislation of the Russian Federation.
Article 3. Brokerage activities
1. Brokerage activities are activities related to the execution of the client's order (including the issuer of equity securities during their placement) for the execution of civil transactions with securities and (or) for the conclusion of agreements that are derivative financial instruments, carried out on the basis of compensated agreements with the client (hereinafter - the brokerage service agreement).
(see text in previous edition)
A professional participant in the securities market carrying out brokerage activities is called a broker.
If the broker renders services for the placement of equity securities, the broker has the right to purchase at his own expense the securities not placed within the time period stipulated by the agreement.
2. The broker takes actions aimed at the execution of clients' orders in the sequence in which such orders were accepted.
The broker is obliged to take all reasonable measures aimed at executing the client's order, while ensuring the priority of the client's interests over his own interests.
The broker is obliged to execute the client's order accepted in good faith and on the most favorable terms for the client in accordance with his instructions. In the absence of such instructions in the brokerage service agreement and the client's order, the broker shall execute the order taking into account all the circumstances relevant to its execution, including the execution time, the transaction price, the costs of the transaction and the execution of obligations under it, the risk of non-performance or improper execution of the transaction by a third face. If the broker service agreement specifies the organizers of trade or foreign exchanges, in the organized trading of which the broker is obliged to execute the client's orders, the requirements of this paragraph shall apply subject to the rules of the said trading.
When making a deal on terms more favorable than those specified by the client, the broker does not have the right to receive additional benefits, unless the order of its distribution is established by the brokerage service agreement.
The broker's report on completed transactions must contain, among other things, information about the price of each of such transactions and the costs incurred by the broker in connection with their execution, and in the event that the broker received additional benefits from a transaction made on terms more favorable than those that were indicated by the client, - information on the amount of additional benefits received by him.
(see text in previous edition)
2.1. If this is stipulated by the brokerage service agreement, the broker has the right to conclude transactions with securities and conclude contracts that are derivative financial instruments, at the same time being a representative of different parties to the transaction, including those who are not entrepreneurs.
(see text in previous edition)
2.2. Obligations arising from an agreement not concluded at an organized auction, each of the parties to which is a broker, do not terminate by the coincidence of the debtor and the creditor in one person, if the obligations of the parties are performed at the expense of different customers or by third parties in the interests of different customers. The broker is not entitled to conclude the specified agreement if its conclusion is carried out in fulfillment of the client's order, which does not contain the price of the agreement or the procedure for determining it. The consequence of the transaction in violation of the requirements established by this paragraph is the imposition of the obligation on the broker to compensate the client for losses.
3. Clients' funds transferred by them to the broker to conclude transactions with securities and (or) conclude contracts that are derivative financial instruments, as well as funds received by the broker under such transactions and (or) such contracts that are made (concluded) by the broker on the basis of contracts with clients, must be in a separate bank account (accounts) opened (opened) by a broker in a credit institution (special brokerage account). The broker is obliged to keep records of the funds of each client, which are in the special brokerage account (s), and report to the client. The clients' funds held on a special brokerage account (accounts) cannot be levied on the broker's obligations. The broker is not entitled to credit his own funds to a special brokerage account (accounts), except for the cases of their return to the client and / or the provision of a loan to the client in the manner prescribed by this article.
(see text in previous edition)
A broker that is a clearing member, at the request of a client, is obliged to open a separate special brokerage account for the execution and (or) securing the fulfillment of obligations admitted to clearing and arising from agreements concluded at the expense of such a client.
The broker has the right to use in his own interests the funds in the special brokerage account (accounts), if this is provided for by the brokerage service agreement, guaranteeing the client the execution of his orders at the expense of the indicated funds or their return at the client's request. The funds of clients who have given the right to use them to the broker in his interests must be kept in a special brokerage account (accounts), separate from the special brokerage account (accounts), which contains the funds of clients who did not grant the broker such a right. The funds of clients who have given the broker the right to use them can be credited by the broker to his own bank account.
The requirements of this clause do not apply to credit institutions.
3.1. If the broker provides services for the execution of orders for the execution of civil transactions with goods admitted to organized trading (including precious metals), and (or) with foreign currency, then the clients' funds transferred to the broker for making such transactions, as well as the funds received by the broker for such transactions, may be kept in a special brokerage account (accounts).
4. The broker has the right to lend money and / or securities to the client for the purchase and sale of securities, provided that the client provides security. Transactions made with the use of funds and / or securities lent by the broker are called margin transactions.
(see text in previous edition)
The terms of the loan agreement, including the loan amount or the procedure for determining it, can be determined by the brokerage service agreement. In this case, a document certifying the transfer of a loan of a certain sum of money or a certain number of securities, a broker's report on completed margin transactions or another document determined by the terms of the agreement is recognized.
The broker has the right to charge the client with interest on the loans provided. As a security for the client's obligations under the loans provided, the broker is entitled to accept only cash and (or) securities.
(see text in previous edition)
Securities and other property of the client held by the broker, including property that serves as security for the client's obligations under the loans provided by the broker, are subject to revaluation by the broker in the manner and on the terms established by the Bank of Russia. Claims on transactions concluded at the expense of the client are also subject to revaluation.
(see text in previous edition)
In cases of non-repayment of the loan amount and (or) borrowed securities on time, non-payment of interest on the loan provided on time, as well as in cases stipulated by the brokerage service agreement, the broker shall foreclose on monetary funds and (or) securities acting as security for obligations the client on loans provided by the broker, out of court by selling such securities at organized trading.
(see text in previous edition)
(see text in previous edition)
Unless otherwise provided by the brokerage service agreement, a broker who, on behalf of the client, has assumed the obligation to transfer property to a third party, shall have the right to demand that the said client transfer such property to him to the extent that such an obligation has at the time of its execution. If the client does not fulfill the specified requirement, the broker has the right to make a transaction without his order at the expense of the property of this client and (or) at the expense of the property that the broker has the right to demand for other transactions made at the expense of this client, and accept execution under such a transaction in account for the settlement of the specified claim against the client.
The broker's transactions at the expense of the client without his instructions, provided for by this clause, may be made not at organized trading only in the cases provided for regulations Bank of Russia.
4.1. If securities are provided as security for the client's obligations to the broker, including for loans provided by the broker, such securities must meet the liquidity criteria established by the regulations of the Bank of Russia.
4.2. The broker has the right to refuse to execute the client's order if the execution of this order leads to a violation of the requirements of federal laws, regulations of the Bank of Russia, basic standards developed by a self-regulatory organization in the field financial market, uniting brokers approved and agreed in accordance with the requirements of the Federal Law dated July 13, 2015 N 223-FZ "On self-regulatory organizations in the financial market ", or to the realization of a conflict of interest. The specified right of the broker is exercised by notifying the client about the refusal to execute such an order.
5. The broker has the right to purchase securities intended for qualified investors and enter into agreements that are derivative financial instruments intended for qualified investors only if the client through whom such a transaction is made (such an agreement is concluded) is a qualified investor in accordance with clause 2 of Article 51.2 of this Federal Law (hereinafter referred to as qualified investors by virtue of the federal law) or is recognized by this broker as a qualified investor in accordance with this Federal Law. In this case, a security or a derivative financial instrument is considered intended for qualified investors if, in accordance with the regulations of the Bank of Russia, transactions with such securities (contracts that are such derivative financial instruments) can be made (concluded) exclusively by qualified investors or at the expense of qualified investors. Qualified investors by virtue of federal law and persons recognized as qualified investors in accordance with this Federal laware called qualified investors.
Capital structure.
Capital structure is understood as the ratio of three components of capital, differing in the methods of financing and their assessment.
1. equity capital in the form of ordinary shares and accumulated earnings.
2. the amount of funds raised through the sale of preferred shares.
3.leveraged capital in the form of long-term bank loan and issuing bonds.
Optimal capital structure- a structure that allows you to achieve a balance of risk and profitability and, therefore, the maximum stock price of the company.
The company's liabilities represent a decision on the choice of sources of the financial enterprise. The main structural sections of the liability are:
Short-term liabilities (short-term debt, current liabilities)
Long-term liabilities (long-term debt)
Short-term liabilitiesthese are liabilities that are covered by current assets or are extinguished as a result of the formation of new short-term liabilities.
These obligations are repaid within a short period (no more than a year).
Short-term liabilities include items such as bills and bills payable, certificates of receipt by the company of a short-term loan, tax arrears, salary payments, advances received, part of long-term liabilities.
Long term duties -this is an obligation with a maturity of more than a year. (these are bonds payable, long-term bills payable, obligations for retirement payments and lease payments.
In liability - the whole amount lease payments reflected as long-term liabilities of the lessee.
Equityis the invested capital and accumulated profit.
The invested capital is subdivided into: share capital and additional capital.
In the composition of accumulated profit, a profit reserve can be allocated, which is not affected by the distribution of dividends, but can be used for the enterprise in unprofitable years or converted into share capital.
The reserves in the structure of the company's liability are a reflection of the prudence principle. Depending on the term, reserves can be reflected in short-term, long-term liabilities or equity.
The reserves can be divided into 3 categories.
1st cat. represents reserve capital. Created from net income after tax. Eg statutory reserves, voluntary reserves and retained earnings.
2nd cat. these are estimated reserves. Created from gross profit, i.e. before taxes They are intended to cover current or future losses or expenses, reserve for doubtful debts, compensation funds (depreciation funds, etc.)
3rd cat. these are reserves of the nature of debts. Created by deductions from gross profit. These reserves include: pension funds, long-term deposits of employees, a reserve for the payment of bonuses to staff, etc.
Meaning of 3 main economic problemsfacing society.
Three main problems facing society: 1 what to produce, 2 how to produce, 3 for whom to produce.
First you need to decide what to produce. What product or service will be in demand and satisfy the needs. Then choose the optimal production in which the maximum profit is obtained while reducing costs, switching to other types of raw materials, etc. correct allocation of limited resources. And finally, it is necessary to select a group of consumers to whom the product (service) will be targeted.
Option. Option types.
Option is a standard exchange-traded agreement for the right to buy or sell an exchange-traded asset.
Two types of options are used: to buy (call option) - the option buyer acquires the right to buy the exchange-traded asset; and to sell (put option) - the buyer has the right to this asset.
Types of options:
By timing
American, which can be exercised at any time before the expiration of the option.
European, which can be executed only on the date of its expiration.
By type of exchange asset
Commodity, the basis of which is any product (metal, gold, etc.)
Currency, which are based on the purchase and sale of currency.
Stock, the initial asset of which is stocks, bonds, indices.
Futures, or options to buy and sell futures contracts.
Broker and dealer. Their rights and responsibilities.
Broker can be an individual or a legal entity that transacts with securities on the basis of a commission agreement or instruction.
Dealer there can only be a legal entity that concludes purchase and sale transactions on its own behalf and at its own expense through a public announcement of prices.
The broker must:
Perform commercial services; Establish contacts between buyers and sellers of goods and services; Provide and conclude an agreement on the most favorable conditions for the sale or purchase of goods, (conv); To study the conjuncture of the internal and external markets, consumer properties of goods, the reliability of securities, the requirements of the participants in the transaction, as well as when concluding commercial exchange transactions; Attend tenders and auctions, ensure the presentation of data for the preparation of auction catalogs, timely establish on behalf of the client the sale prices, the transaction amount; Organize the transportation of goods; Perform settlement and analytical operations and work on registration and execution of exchange documents, formulate the content of the application; Advise clients on issues related to his competence.
The broker has the right:
1. Conduct civil transactions on its own behalf.
2. Execute and register exchange documents related to the operations performed.
3. Give instructions, tasks and orders to subordinate agents.
4. Attend auctions and auctions.
Dealer's responsibilities:
1. Organization of internal accounting of transactions with securities.
2. Disclosure of the information he has when performing transactions with the issuer's securities or a message about the fact that he does not have this information.
3. Announcement of the sale and purchase prices, the minimum and maximum number of bought and sold securities, as well as the period during which the announced prices are valid.
4. Submission of reports on its activities to the securities market commission.
5. Execution of transactions on the terms proposed by the client, but in the absence of relevant offers from the dealer.
Dealer Rights:
1. Conclusion of contracts for the purchase and sale of securities.
2. Advising clients on the acquisition of securities.
3. Presentation of funds to its clients under a loan agreement.
Exchange trading. Listing.
Exchange trading is a set of actions of exchange intermediaries and exchange speculators aimed at making transactions during an exchange trading session.
The main sections of the rules of exchange trading:
1. the procedure for conducting exchange trading. This section regulates the trading venue, trading sessions and opening hours.
2. types of exchange transactions. Exchanges determine the nature of transactions that can be carried out on a given exchange. The exchange determines standard contracts for each type of transactions, transaction volumes, standard delivery data. (eg conclusion of a transaction with real goods, securities and futures transactions).
3. exchange information. Accurate, timely and complete information about concluded deals allows you to analyze the state of the market and make the right decisions. Exchange information can be current (information about the last deals made on the exchange) and summary (reflects the final results of the exchange day).
4. the procedure for mutual settlements of members of the exchange and other participants in exchange trading. It defines the mutual rights and obligations of the bidders and ensures the protection of their interests.
The list of participants is determined depending on the type of exchange (stock or commodity) and the adopted legislative acts.
Main groups of participants:
Concluding deals
Organizing the conclusion of exchange transactions
Controlling the course of conducting exchange trading
Watching the trading.
Listing is a regulated stock exchange or by another market organizer, the procedure for selecting and admitting securities to trading. The listing procedure involves checking compliance with the rules of the issue, the presence of registration of the issue of the company's financial capabilities, the size of the share capital.