The displacement of funds in the financial system takes the form of direct or indirect financing. Direct financing; It is the method directly faced by economic entities that provide and demand funds. Indirect financing, on the other hand, is the responsibility of financial intermediaries to transfer funds between these two groups.
What are the financial instruments in the capital market law?
In the capital market legislation, share certificates of HAAOs, corporate bonds, bank bonds, investment certificates, capital market instruments encumbered by real estate liens, warrants, leases are the main securities that can be counted by name.
Who can be the fund provider? Those who demand funds are investors, and these are people who need capital and loans.
Who regulates the financial markets?
If we look at the structures of regulatory authorities in the financial markets in general, banks are supervised by the Central Bank, other financial institutions It can be seen that the Central Bank also plays a role in the supervision and regulation of institutions, securities markets and insurance companies.
How the financial system works?
What is a financial system?
The financial system is the structure in which the exchange of funds between persons or institutions with surpluses and deficits of funds is carried out within a given legal and administrative order, using investment and financing instruments through financial institutions. In a market economy, four economic entities make the decisions. What are the main instruments of the capital market?
Bonds, securities, shares, contracts are capital market instruments. In short, the financial system and all its elements belong to the capital market instruments.
What is a financial asset that is traded in the capital markets?
Capital markets On the other hand, financial instruments with a maturity of more than one year on the capital markets. Assets are traded. Loans obtained from these markets are mainly used to finance certain fixed assets of enterprises such as buildings, machinery and equipment.
What does capital market instruments mean?
Capital market instruments, securities and derivative instruments and other capital market instruments that the Board of Directors determines fall within this scope, including investment contracts. Stocks can be cited as examples of securities that confer corporate rights, and bonds can be cited as examples of securities that confer credit rights.
What does fund deficit mean?
The two basic elements of the financial system are those with a financing deficit and those with a financing surplus. Those who have surplus funds try to increase their wealth by converting their funds into investment instruments thanks to financial institutions. Those with a financing deficit seek to fill that deficit with various financing instruments.
What is the name of the market that brings together those who have excess funds and those who need funds?
Financial markets; These are the markets where economic entities with surplus funds and economic entities with deficits of funds meet and the flow of funds between these entities is ensured. Financial markets are divided into money market and capital market.