Credit as a financial instrument. The essence of a bank loan as a financial instrument in the functioning of an enterprise. Credit is not always evil

International credit has traditionally played the role of a factor that mainly served foreign trade relations between individual countries. In the second half of our century, the situation began to change, and by now, in fact, an international market mechanism for credit has already formed, which covers not only the sphere of international trade in goods and services, but also the processes of real investment, regulation of balances of payments, servicing the external debt of debtor countries.

International credit is the provision of monetary resources of some countries to others for temporary use in the field of international relations, including in foreign economic relations. These relations are carried out by providing foreign exchange and commodity resources to foreign borrowers on terms of repayment, urgency and interest.

Funds for international credit are mobilized in the international loan capital market, in the national loan capital markets, as well as through the use of resources of state, regional and international organizations. The size of the loan and the terms of its presentation are fixed in the loan agreement (agreement) between the lender and the borrower. Banks, firms, government agencies, governments, international and regional monetary financial institutions can act as lenders and borrowers.

The state can participate in the international credit of developed countries not only as a borrower and lender, but also as a guarantor. For example, government guarantees of export credits are widely practiced. Various forms of state and international regulation of international loans are used, in particular, intergovernmental and gentlemen's agreements on the terms of export loans.

Credit relations in the economy are based on a certain methodological basis, one of the elements of which are the principles strictly observed in the practical organization of any operation on the loan capital market. These principles emerged spontaneously at the first stage of credit development, and later found direct reflection in national and international credit legislation.

Loan repayment.

This principle expresses the need to timely return the financial resources received from the lender after the borrower has completed their use. It finds its practical expression in the repayment of a specific loan by transferring the appropriate amount of funds to the account of the lending institution (or other lender) that provided it, which ensures the renewability of the bank's credit resources as a necessary condition for the continuation of its statutory activities. In the domestic practice of lending under the conditions of a centralized planned economy, there was an unofficial concept of "irrecoverable loan". This form of lending was quite widespread, especially in the agricultural sector, and was expressed in the provision of loans by state credit institutions, the return of which was not initially planned due to the financial crisis of the borrower. According to his economic essence Irrevocable loans were rather an additional form of budget subsidies, carried out through the intermediary of a state bank, which traditionally complicated credit planning and led to constant falsification of the expenditure side of the budget. In a market economy, the concept of a non-repayable loan is just as unacceptable as, for example, the concept of a “planned loss-making private enterprise”.

Loan urgency

It reflects the need to return it not at any time that is acceptable to the borrower, but at a precisely defined date fixed in the loan agreement or a document replacing it. Violation of this condition is a sufficient basis for the lender to apply economic sanctions to the borrower in the form of an increase in the interest charged, and with a further postponement - to submit financial claims in court. A partial exception to this rule is the so-called oncall loans, the maturity of which is not initially specified in the loan agreement. These loans, quite common in the 19th and early 20th centuries. (for example, in the agrarian complex of the USA), in modern conditions they are practically not used, first of all, because of the difficulties they create in the process of credit planning.

Loan repayment. Loan interest.

This principle expresses the need not only for a direct return by the borrower of the credit resources received from the bank, but also for payment of the right to use them. The economic essence of the loan payment is reflected in the actual distribution of the profit additionally obtained through its use between the borrower and the lender. The principle under consideration finds practical expression in the process of establishing the value bank interestperforming three main functions:

redistribution of part of legal profits and income individuals;

regulation of production and circulation through the distribution of loan capital at the sectoral, inter-sectoral and international levels;

at crisis stages of economic development - anti-inflationary protection of the bank's clients' money savings.

The rate (or rate) of the loan interest, defined as the ratio of the amount of annual income received on loan capital, to the amount of the loan provided, acts as the price of credit resources.

Confirming the role of the loan as one of the goods offered on the specialized market, the repayment of the loan stimulates the borrower to use it most productively. It is this incentive function that was not fully utilized in a planned economy, when a significant part of credit resources were provided by state banking institutions for a minimum fee (1.5 - 5% per annum) or on an interest-free basis.

The loan price reflects the general ratio of supply and demand in the loan capital market and depends on a number of factors, including a purely opportunistic nature:

cyclical development of the market economy (at the stage of recession, the interest rate, as a rule, increases, at the stage of rapid growth, it decreases);

the rate of inflation (which in practice even lags behind the rate of increase in the interest rate);

the effectiveness of state credit regulation, carried out through accounting policy the central bank in the process of lending to commercial banks;

the situation in the international credit market (for example, the policy of raising the cost of loans, pursued by the United States in the 1980s, led to the attraction of foreign capital to American banks, which affected the state of the corresponding national markets);

dynamics of monetary savings of individuals and legal entities (with a tendency to decrease, the loan interest, as a rule, increases);

dynamics of production and circulation, which determines the need for credit resources of the relevant categories of potential borrowers;

seasonality of production (for example, in Russia, the loan interest rate traditionally rises in August - September, which is associated with the need to provide agricultural loans and loans for the delivery of goods to the Far North);

the ratio between the size of loans provided by the state and its debt (the loan interest rate steadily increases with an increase in the domestic public debt).

Loan security

This principle expresses the need to ensure the protection of the property interests of the lender in the event of a possible violation by the borrower of the obligations assumed and finds practical expression in such forms of lending as loans secured against collateral or against financial guarantees. It is especially relevant during the period of general economic instability, for example, in domestic conditions.

Target nature of the loan

It applies to most types of credit operations, expressing the need for the targeted use of funds received from the lender. Finds practical expression in the relevant section of the loan agreement, which establishes the specific purpose of the loan to be issued, as well as in the process of bank control over compliance with this condition by the borrower. Violation of this obligation may become the basis for early withdrawal of the loan or the introduction of a penalty (increased) loan interest.

Differentiated nature of the loan

This principle determines a differentiated approach on the part of a credit institution to various categories of potential borrowers. Its practical implementation may depend both on the individual interests of a particular bank and on the centralized policy pursued by the state to support certain industries or spheres of activity (for example, small business, etc.)

Place and role of credit in economic system societies are determined, first of all, by the functions they perform.

Redistribution function

International credit realizes the redistribution of financial and material resources between countries, allowing them to be used with greater efficiency, or the satisfaction of the most urgent needs for borrowed funds. Through the mechanism of international credit, loan capital rushes to those areas that are preferred based on the current and strategic objectives of national capital in order to ensure maximum profits.

Savings on distribution costs

The practical implementation of this function directly follows from the economic essence of credit, the source of which are, including financial resources, temporarily released in the process of the circulation of industrial and commercial capital. The time gap between the receipt and expenditure of funds of business entities can determine not only the surplus, but also the lack of financial resources. That is why loans to fill the temporary shortage of own working capital, used by almost all categories of borrowers and providing a significant acceleration of capital turnover, and, consequently, savings, are so widespread. total costs treatment.

Accelerating capital concentration

The process of capital concentration is a necessary condition for the stability of economic development and a priority goal of any business entity. Real help in solving this problem is provided by borrowed funds, which make it possible to significantly expand the scale of production (or other business operation) and, thus, provide an additional mass of profit. Even taking into account the need to allocate part of it for settlement with the lender, the attraction of credit resources is more justified than focusing exclusively on own funds. However, it should be noted that at the stage of economic recession (and even more so in the transition to a market economy) the high cost of these resources does not allow them to be actively used to solve the problem of accelerating the concentration of capital in most spheres of economic activity. Nevertheless, the function under consideration, even in domestic conditions, provided a certain positive effect, making it possible to significantly speed up the process of providing financial resources to areas of activity that were absent or extremely undeveloped during the period of the planned economy.

Service turnover

In the process of implementing this function, credit affects the acceleration of not only commodity, but also money circulation, displacing cash from it. By introducing instruments such as bills of exchange, checks, credit cards, etc. into the sphere of monetary circulation, it provides for the replacement of cash with non-cash transactions, which simplifies and accelerates the mechanism of economic relations in the domestic and international markets. The most active role in solving this problem is played by commercial credit as a necessary element of modern relations of commodity exchange.

Accelerating scientific and technological progress

In the post-war years, scientific and technological progress has become a determining factor in the economic development of any state and individual economic entity. Most clearly, the role of credit in its acceleration can be traced on the example of the process of financing the activities of scientific and technical organizations, the specificity of which has always been a greater than in other industries, the time gap between the initial investment of capital and implementation finished products... That is why the normal functioning of most research centers (with the exception of those on budgetary funding) is unthinkable without the use of credit resources. Credit is also needed for the implementation of innovative processes in the form of direct implementation of scientific developments and technologies into production, the costs of which are initially financed by enterprises, including through targeted medium and long-term bank loans.

So, a loan is an economic relationship that arises between a lender and a borrower about the value given for temporary use.

In a market economy, credit performs the following functions:

• a) accumulation of temporarily free funds;
• b) redistribution of funds on the terms of their subsequent return;
• c) creation of credit instruments of circulation (banknotes and treasury notes) and credit transactions;
• d) regulation of the volume of the aggregate money turnover.

Fulfilling these interrelated functions, international credit plays a double role in the development of production: positive and negative. On the one hand, credit ensures the continuity of reproduction and its expansion. It promotes the internationalization of production and exchange, the deepening of the international division of labor. On the other hand, international credit enhances the imbalances in social reproduction, stimulating the leapfrogging expansion of profitable industries, and restrains the development of industries that do not attract foreign borrowed funds. International credit is used to strengthen the competitive position of foreign lenders.

The boundaries of international credit depend on the sources and needs of countries in foreign borrowed funds, loan repayment on time. Violation of this objective boundary gives rise to the problem of settling the foreign debt of the borrowing countries. Among them are developing countries, Belarus, other CIS states, countries of Eastern Europe, etc.

The dual role of international credit in a market economy is manifested in its use as a means of mutually beneficial cooperation between countries and competition.

Bank loan is one of the most common forms credit relations in the economy, the object of which is the process of transferring funds into a loan on the terms of urgency, repayment, payment.

A bank loan expresses the economic relations between creditors (banks) and lending entities (borrowers), which can be both legal entities and individuals. The bank form of credit is the most common form, since it is the banks that most often provide loans to entities in need of temporary financial assistance.

A bank loan is provided exclusively by credit and financial organizations licensed to carry out such operations.

The main principles of lending, including banking, which must be observed in the process of issuing and repaying loans, are:

the urgency of the return;

target character;

paid;

security;

differentiation;

Repayment is the feature that distinguishes credit as an economic category from other economic categories of commodity-money relations. Credit cannot exist without repayment. Repayment is an integral feature of the loan, its attribute.

The urgency of lending is a necessary form of achieving loan repayment. The principle of urgency means that the loan should not only be repaid, but repaid within a strictly defined period, i.e. in it the time factor finds concrete expression. And, therefore, urgency is a temporary definiteness of loan repayment. IN market conditions As never before, this principle of lending is given special importance:

1. The normal provision of social reproduction with monetary funds, and, accordingly, its volumes, growth rates depend on its observance.

2. Compliance with this principle is necessary to ensure the liquidity of the commercial banks themselves. The principles of organizing their work do not allow them to invest the attracted credit resources into irrecoverable investments.

3. For each individual borrower, compliance with the principle of the urgency of loan repayment opens up the possibility of obtaining new loans in the bank, and also allows you to comply with your self-supporting interests without paying increased interest for overdue loans.

The targeted nature of the loan involves the issuance of loans for strictly defined purposes, which, like objects, can vary widely. Each potential borrower, when applying for a loan, must indicate a specific goal. The bank, having issued a loan, is called upon to check its intended use, in cases of violation of the terms of the loan agreement, it must apply sanctions.

The principle of repayment of the loan means that each borrowing company must pay the bank a certain fee for temporarily borrowing money from it for its own needs. The implementation of this principle in practice is carried out through the mechanism of bank interest. The bank interest rate is a kind of "price" of the loan. The bank can pay for a loan to cover its costs associated with the payment of interest on other people's funds attracted in deposits, the costs of maintaining its own apparatus, and also provides profit for increasing the resource crediting funds (reserve, statutory) and use for own and other needs.

The main factors that modern commercial banks take into account when setting loan fees:

Base interest rate on loans to commercial banks of the Central Bank of the Russian Federation;

Average interest rate on an interbank loan, i.e. for resources purchased from other commercial banks for their active operations;

Average interest rate paid by the bank to its customers on various types of deposit accounts;

The structure of the bank's credit resources (the higher the share of borrowed funds, the more expensive the loan should be);

Demand for credit from business executives (the lower the demand, the cheaper the loan);

The term for which the loan is requested, and the type of loan, or rather the degree of its risk for the bank, depending on the collateral;

Stability of monetary circulation in the country (the higher the inflation rate, the more expensive the loan payment should be, since the bank increases the risk of losing its resources due to the depreciation of money).

Under the conditions of a planned economy, the principle of credit security was interpreted by our economists very narrowly: only the material security of credit was recognized. This meant that loans had to be issued against specific material values \u200b\u200bthat were at different stages of the reproduction process, the presence of which throughout the entire period of use of the loan testified to the security of the loan and, therefore, the reality of its return. Only with the adoption at the end of 1990. Of the Law "On Banks and Banking Activities", commercial banks of the Russian Federation were able to issue loans against various forms of loan security, adopted in international banking practice, and subsequently enshrined in the Civil Code of the Russian Federation. This is a pledge obligation, a guarantee agreement, a surety agreement, etc. Security of obligations on bank loans in one or several forms at the same time is provided by both parties to the credit transaction in the credit agreement concluded between themselves.

Differentiation of lending means that commercial banks do not have to unambiguously approach the issue of granting loans to their clients applying for it. The loan should be provided only to those economic agencies that are able to repay it on time. Differentiation of lending should be carried out on the basis of indicators of creditworthiness - the financial condition of the enterprise. These qualities are assessed by analyzing the balance sheet for liquidity, the provision of the farm with its own sources, the level of its profitability at the current moment and in the future.

The cumulative application in practice of all the principles of bank lending makes it possible to observe both the national interests and the interests of both subjects of the credit transaction: the bank and the borrower.

Lending conditions are as follows:

coincidence of interests of both parties to the credit transaction;

the availability of both the creditor bank and the borrower opportunities to fulfill their obligations;

the possibility of implementing the pledge and the availability of guarantees

ensuring the commercial interests of the bank;

conclusion of a loan agreement.

A bank loan is classified according to a number of characteristics:

I. By main groups of borrowers:

Loan to the farm;

The population;

Government authorities.

II. By terms of use:

Poste restante;

Urgent:

Short-term (up to 1 year),

Medium-term (from 1 to 3 years),

Long-term (over 3 years).

Based on the characteristics of the market economy in Russia, it is also necessary to consider another classification of term loans: short-term (up to 1 year) and long-term (more than 1 year).

Short-term loans are provided to fill a temporary shortage of the borrower's own working capital. A short-term loan serves the sphere of circulation. The most widely used short-term loans for stock market, in trade and services, in the regime of interbank lending.

Medium-term loans are provided for production and commercial purposes. They are most widespread in the agricultural sector, as well as in lending to innovative processes with average volumes of required investments.

Long-term loans are used for investment purposes. They serve the movement of fixed assets, differing in large volumes of transferred credit resources. They are used for crediting reconstruction, technical re-equipment, new construction at enterprises of all fields of activity. Long-term loans were especially developed in capital construction, the fuel and energy complex.

III. By appointment (direction):

Consumer;

Industrial;

Trade;

Agricultural;

Investment;

Budgetary.

IV. By repayment methods:

Loans repaid in installments (parts, shares);

Loans repayable in a lump sum (for one specific date).

Loans repaid in installments during the entire term of the loan agreement. The specific conditions for the return are determined by the contract. Always used for long-term loans.

Loans repaid by a one-time installment from the borrower. This traditional form of repayment of short-term loans is optimal, because does not require the use of the differential interest mechanism.

V. Depending on the area of \u200b\u200boperation:

Loans participating in the extended reproduction of fixed assets;

Loans participating in the organization of working capital (loans directed to the sphere of production, and loans serving the sphere of circulation).

Vi. By way of issue:

Compensatory - the loan is sent to the current account of the borrower to reimburse the latter for his own funds invested either in inventory items or in costs.

Payment - the loan is sent directly to the payment of settlement documents presented to the borrower for payment for the activities being credited.

Vii. By lending methods:

One-time loans provided on time and in the amount stipulated in the agreement concluded by the parties.

A credit line is a legal obligation of a bank to a borrower to provide him with loans within a certain period of time within the agreed limit.

Credit lines are:

Renewable is a firm commitment by the bank to issue a loan to a client who is experiencing a temporary shortage of working capital. The borrower, having repaid part of the loan, can expect to receive a new loan within the established limit and the term of the agreement.

Seasonal credit line provided by the bank if the firm periodically has a need for working capital associated with seasonal cyclicality or the need to build stock in a warehouse.

Overdraft is a short-term loan that is provided by debiting funds from the client's account in excess of the balance on the account. This results in a debit balance on the customer's account. Overdraft is a negative balance on the client's current account. Overdraft may be permitted, i.e. pre-agreed with the bank and unauthorized, when the client writes a check or payment document without the permission of the bank. Overdraft interest is charged daily on the outstanding balance and the client only pays for the amounts actually used.

VIII. By types of interest rates:

Loans with a fixed interest rate, which is established for the entire crediting period and is not subject to revision. In this case, the borrower undertakes to pay interest at the unchanged agreed rate for using the loan, regardless of changes in the market interest rates. Fixed interest rates are applied for short-term lending.

Loans with floating interest rates. Floating rates are those rates that constantly change depending on the situation in the credit and financial markets.

Loans with graduated interest rates. These interest rates are reviewed periodically. Used in times of strong inflation.

IX. By types of borrowers:

Loans to legal entities;

Loans to individuals

By size: large, medium and small.

XI. By availability of collateral:

Unsecured (blank) loans;

Secured, which, by the nature of the security, are also subdivided into pledged, guaranteed and insured.

Trust loans, the only form of security for the return of which is a loan agreement. This type of loan does not have specific collateral and, therefore, is provided, as a rule, to first-class creditworthy clients with whom the bank has long-standing ties and has no claims for previously issued loans.

Pledge agreement. Pledge of property (movable and immovable) means that the creditor, the pledgee, is entitled to sell this property if the obligation secured by the pledge is not fulfilled. The pledge must ensure not only the return of the loan, but also the payment of the corresponding interest and penalties under the contract, provided for in the event of its failure.

Guarantee agreement. Under this agreement, the guarantor is obliged to the creditor of another person (borrower, debtor) to be responsible for the latter's performance of his obligation. The borrower and the guarantor are liable to the creditor as joint and several debtors .

Warranty. This is a special type of surety agreement to secure an obligation between legal entities. Any financially stable legal entity can be a guarantor.

Credit risk insurance. The borrower enters into an insurance contract with the insurance company, which stipulates that in case of non-repayment of the loan within the prescribed period, the insurer pays the bank that issued the loan, compensation in the amount of 50 to 90% of the loan amount not repaid by the borrower, including interest on the loan.

XII. By degree of risk:

Standard;

Non-standard;

Doubtful;

Hopeless.

XIII. By the purpose of the loan:

Loans general, used by the borrower at its own discretion to meet any need for financial resources. In modern conditions, they have limited use in the field of short-term lending, with medium- and long-term lending, they are practically not used.

Target loans, implying the need for the borrower to use the resources allocated by the bank solely for solving problems determined by the terms of the loan agreement (for example, payment for purchased goods, payment of salaries to staff, capital development, etc.). Violation of these obligations entails the application of sanctions established by the agreement to the borrower in the form of early withdrawal of the loan or an increase in the interest rate.

The need and the possibility of attracting a bank loan is due to the laws of the circulation and turnover of capital in the process of reproduction: in some places temporarily free funds are released, which act as a source of credit, in others there is a need for a loan, for example, to expand production. Thus, credit contributes to economic growth: the lender receives payment for the loan, and the borrower increases and renews his productive assets.

The methodology for calculating the need to attract a bank loan to finance the current expenses of an enterprise is a logical procedure for assessing the feasibility of using a bank loan as an instrument of external financing.

The calculation of the need for a bank loan is based on the following basic conditions. First, the possibility of attracting credit resources is seen as one of the alternatives to bridge the time gap between the inflow and outflow of funds. The decision to attract a loan is made subject to the greater economic feasibility of this method of external financing, in comparison with other available methods of covering the cash gap. Second, the enterprise planning system must support the simulation function. To select the optimal source of funding, it is important to be able to carry out a preliminary assessment of the consequences of making various decisions - in this case, when using certain methods to cover the cash gap.

The information necessary to solve the problem of identifying the fact of a cash deficit, its value, is reflected in the cash flow statement. Cash flow statement is a financial document that presents, in a systematic form, at a given time interval, the expected and actual values \u200b\u200bof the inflow and outflow of funds of the enterprise. The cash flow statement shows the projected values \u200b\u200bof the cash balance for a specific date and signals the planned need for additional resources. The data used as input in the cash flow statement is generated by the output of operating budgets. Operating budgets are estimates of planned and actual values \u200b\u200bof receipts and outflows of funds, grouped by the basis of the enterprise's operations of the same type.

After identifying the size of the cash deficit, the date of its formation and the period of operation, it is necessary to take measures to eliminate it. First of all, the reason for the deficit is found out; the first option to cover the deficit may be to eliminate its cause.

The main task of the management of any company - effective management of the limited resources at its disposal - in relation to cash management in the short term is solved by manipulating a number of parameters that determine the duration of the financial cycle. Let us recall that the financial cycle for an enterprise is a period of time that begins from the moment the raw materials, materials and components are supplied or the suppliers receive an advance payment for their delivery, and ends with the moment the enterprise receives payment for the products shipped to customers. With proper management of the financial cycle, it is possible to significantly affect the company's needs for working capital and the rate of their turnover, which will not only affect the efficiency of the business, but also the company's needs for working capital.

What are the possibilities for this?

The funds so necessary for the enterprise can be released, in particular, by changing the duration, resource intensity and other parameters of the production cycle (i.e., the method or technology for carrying out the main activity). At the same time, it is clear that, for example, in the case of considering the feasibility of changing technology, additional investments cannot be done and the analysis of the consequences of such decisions should be carried out as carefully as possible.

In addition to such drastic transformations as replacing equipment, changing technology, reengineering an enterprise affecting the very foundations of its activities, it is possible to use less radical means, in particular, the deployment of broad industrial cooperation (i.e., purchasing part of the components instead of producing them independently) ...

You can also increase your cash flow by increasing your sales. However, when trying to "play" with the price of products, one should at least analyze the break-even of production.

Consideration of opportunities for accelerating inventory (or, more broadly, resources) turnover should not be left aside. Their presence, obviously, is determined by the company's desire to reduce the risk of more serious losses that may arise as a result of the interruption of core activities, the emergence of unmet demand, etc., rather than incurring additional costs, the level of which is determined by the volume of these reserves. At the same time, considering this issue, the term "stocks" should be understood rather broadly: we can talk about stocks of final products, semi-finished products and raw materials, natural and labor resources, as well as stocks of cash.

What should be the volume of stocks? As long as the potential losses exceed the costs of maintaining reserves, the availability of certain volumes of them seems to be beneficial, but the final decision should be made only after a detailed analysis of all possible options. At the same time, practice shows that in the process of a thorough study of the reasons for the emergence of certain reserves, it may turn out that it is possible to do without them at all or, at least, to reduce their volumes.

A company can also influence the duration of the financial cycle and the efficiency of its operations by using certain means of payment and schemes for settlements with suppliers, consumers, etc. At the same time, its relationships are important not only with other participants in the value chain, but also with banks, since at the same time it is possible to choose certain financial instruments and optimize their parameters (percentages, speed of payment, etc.). Accordingly, the correct choice of these tools can be carried out only after comprehensive calculations and comparison of various schemes of their use. The choice of a specific method to cover the cash deficit is carried out in two stages. At the first stage, from the available alternatives, methods are selected, the expediency of which is confirmed by calculations of a strategic nature. For example, a request to counterparties to speed up settlements can reduce the level of confidence in the enterprise, so it is impractical to use them. The second stage analyzes the consequences of using each of the options. The selection criterion is the financial condition of the enterprise caused by the use of a specific method to cover the deficit.

Quality management strategy financial the activities of the enterprise should provide for the effective implementation modern scientific achievements in this area of \u200b\u200bactivity, first of all, to ensure the selection of appropriate financial instruments operations on financial market. Financial tools represent a variety of circulating financial documents with monetary value, with the help of which transactions are carried out financial market.
In accordance with the accounting principles, the composition modern financial instruments used by the enterprise, is characterized by the following types of them (Figure 17.1):
1. Financial assets represent the property values \u200b\u200bof the enterprise in the form of cash; and their equivalents; contracts granting the right to receive cash or other property values \u200b\u200bfrom another economic entity; contracts granting the right to exchange financial instruments with another participant financial market on potentially favorable terms; instruments equity capital of another company.
2. Financial liabilities represent a contractual obligation of an enterprise to transfer its cash or other property values \u200b\u200bto another business entity; exchange financial instruments with another participant
financial market on potentially unfavorable terms.
3. Equity instruments are a contractual document confirming the owner's right to a certain part of the assets of the enterprise, after deducting the amounts for all of its liabilities.
4. Derivatives financial instruments (derivatives) are a special form of contract that does not require the initial investment of the enterprise, the settlements of which will be made in the future period after the expiration of its validity period, the value of which changes due to changes in the interest rate, the rate of securities, the exchange rate, the price index, the credit rating or other price characteristics of the corresponding baseline financial instrument. Contacting financial market tools, servicing operations in its various types and segments are characterized by modern stage of great variety.
1. By types financial markets are distinguished by the following serving them tools:
a) Credit market instruments. These include money and settlement documents circulating in the money market.
b) Stock market instruments. These include a variety of securities circulating on this market (the composition of securities by their types, characteristics of issue and circulation is approved by the relevant regulatory legal acts).
c) Instruments of the foreign exchange market. These include foreign currency, currency settlement documents, as well as certain types of securities serving this market.
d) Instruments of the insurance market. These include offered for sale
insurance services (insurance products), as well as settlement documents and certain types of securities serving this market.
e) Instruments of the gold market (silver, platinum). These include the specified types of valuable metals purchased for the formation financial reserves and reservations, as well as settlement documents and securities serving this market.
2. By the period of circulation, the following types are distinguished financial instruments:
a) Short-term financial instruments (with a circulation period of up to one year). This kind financial instruments is the most numerous and is designed to serve transactions in the money market.
b) Long-term financial instruments (with a circulation period of more than one year). To this kind financial instruments so-called "unlimited financial instruments", the final maturity of which is not fixed (for example, shares). Financial tools of this type serve capital market operations.
3. By the nature of the issuer's obligations financial instruments are divided into the following types:
a) Instruments, subsequent financial obligations for which do not arise ( tools without subsequent financial obligations). They are, as a rule, the subject of the implementation of the most financial operations and during their transfer to the buyer do not incur additional financial obligations on the part of the seller (for example, currency values, gold, etc.).
b) Debt financial instruments. These tools characterize the credit relationship between their buyer and seller and oblige the debtor to repay their nominal value within the stipulated time frame and pay additional interest in the form of interest (if it is not included in the redeemable nominal value of the debt financial instrument). An example of debt financial instruments there are bonds, bills, checks, etc.
c) Equity financial instruments. Such financial instruments confirm the right of their owner to a share in the authorized capital of their issuer and to receive the corresponding income (in the form of dividends, interest, etc.).
Equity financial instruments are, as a rule, securities of the corresponding types (shares, investment certificates, etc.).
4. According to the priority importance, the following types are distinguished financial instruments:
a) Basic financial instruments (financial instruments first order). Such financial instruments (as a rule, securities) are characterized by their issue into circulation by the primary issuer and confirm direct property rights or credit relations (stocks, bonds, checks, bills of exchange, etc.).
b) Derivatives financial instruments or derivatives ( financial instruments second order) characterize exclusively securities that confirm the right or obligation of their owner to buy or sell tradable primary (basic) securities, currency, goods or intangible assets on predetermined conditions in the future period. Such financial instruments are used to conduct speculative financial price risk insurance operations and operations ("hedging"). Depending on the composition of the primary (basic) financial instruments or assets in relation to which they are put into circulation, derivatives are divided into stock, currency, insurance, commodity, etc. The main types of derivatives are options, swaps, futures and forward contracts.
5. By the guarantee of the level of profitability financial instruments are divided into the following types: a) Financial tools with a fixed income. They characterize financial instruments with a guaranteed level of profitability upon their maturity (or during the period of their circulation), regardless of the market fluctuations in the interest rate (rate of return on capital) on financial market.
b) Financial tools with uncertain income. They characterize financial instruments, the level of profitability of which may vary depending on financial the state of the issuer (common shares, investment certificates) or due to changes in market conditions financial market (debt financial instruments, with a floating interest rate, "pegged" to the established discount rate, the rate of a certain "hard" foreign currency, etc.).
6. According to the level of risk, the following types are distinguished financial instruments:
a) Risk-free financial instruments. These usually include government short-term securities, short-term certificates of deposit of the most reliable banks, "hard" foreign currency, gold and other precious metals purchased for a short period. The term "risk-free" is to some extent conditional, since the potential financial risk carries any of the listed types financial instruments; they serve only to form a reference point for measuring the level of risk for other financial instruments.
b) Financial tools low risk. These include, as a rule, a group of short-term debt financial instruments, serving the money market, the fulfillment of obligations for which is guaranteed by a stable financial the condition and reliable reputation of the borrower (characterized by the term "first-class borrower").
c) Financial tools with a moderate level of risk. They characterize the group financial instruments, the level of risk for which approximately corresponds to the average market.
d) Financial tools with a high level of risk. These include financial instruments, the level of risk for which significantly exceeds the market average.
e) Financial tools with a very high level of risk ("speculative"). Such financial instruments are characterized by the highest level of risk and are usually used to carry out the most risky speculative operations on financial market. An example of such high-risk financial instruments are the shares of "venture" (risky) enterprises; high interest bonds issued by an enterprise in crisis financial state; options and futures contracts, etc.
The above classification reflects the division financial instruments only by the most essential general features. Each of the considered groups of financial instruments in turn, it is classified according to certain specific features reflecting the peculiarities of their issue, circulation and redemption.
Let us consider in more detail the composition and nature of individual financial instruments, serving operations on various types financial markets.
1. The main financial instruments credit market are:
a) monetary assets that make up the main object of credit relations between the lender and the borrower;
b) checks, representing a monetary document of the established form, containing an order of the owner of the current account in the bank (or other credit financial institute) on the payment on its presentation of the amount of money indicated in it. Distinguish between a personal check (without the right of transfer and endorsement); bearer check (which does not require a transfer note when transferring it to another owner) and an order check (a transfer check that can be transferred to another owner using a transfer note - endorsement);
c) letters of credit representing pecuniary obligation commercial
bank, issued by him on behalf of the customer-buyer to make a payment in favor of the buyer or another commercial bank within the amount specified in it against the specified documents.
Distinguish between revocable and irrevocable letters of credit, as well as letters of credit and transferable ",
d) bills of exchange, which represent an unconditional monetary obligation of the debtor (drawer) to pay after the due date specified in it a certain amount of money to the owner of the bill (drawer). IN modern In practice, the following types of bills are used: commercial bill (which draws up a settlement monetary obligation of the buyer of products under a commodity credit); bank (or financial) a bill of exchange (drawing up a monetary obligation of a commercial bank or other credit financial institute on received financial credit), a tax bill (formalizing a monetary obligation of the payer of a certain type of tax payment to pay off at a certain time for its deferred payment). When committing financial operations on the credit market can be applied: interest bill (issued for the nominal amount of debt and providing for the accrual of interest on this amount in the amount agreed by the parties to the bill transaction); discount bill (income on such a bill is the difference between its nominal value and the price of its purchase). Finally, the issued promissory notes (they are one of the types of securities) are subdivided into the following types: promissory note (it assumes that the issuer of the promissory note is at the same time the payer for it to a specific person or by his order); a bill of exchange (it assumes that its holder can order the drawer to pay the amount owed on it by endorsement). If a bill of exchange of an economic entity contains a bank guarantee, it is called an "avalanche bill";
e) collateral documents. They represent a formalized promissory note securing the received financial or a commercial loan in the form of a pledge or mortgage. In case of violation by the borrower of the terms of the loan agreement, the owner of this debt obligation has the right to sell them to pay off his debt or to receive the property specified in it.
f) other financial instruments credit market. These include mottos, bill of lading, etc.
2. The main financial instruments the securities market are:
a) stocks. They are a security that certifies the participation of its owner in the formation of the authorized capital of a joint-stock company and gives the right to receive an appropriate share of its profit in the form of a dividend.
On modern the stage of development of the domestic stock market, shares are the most widely represented financial instrument, although by this indicator they are significantly inferior to the indicators of the stock market of countries with developed market economies. As for the volume financial transactions in shares, it is relatively small due to low liquidity and profitability of the majority of its types.
b) bonds. They are a security that indicates that its owner has contributed funds and confirms the issuer's obligation to reimburse him for the par value of this security within the period provided for therein with payment of a fixed interest (unless otherwise provided by the terms of issue).
On modern At the stage of development of the domestic stock market, the number of varieties of bonds circulating on it is relatively small (in comparison with similar indicators of the stock market in countries with developed market economies and the number of varieties of traded shares), however, in terms of the volume of transactions, they occupy the first place (primarily due to transactions in government bonds).
c) savings (deposit) certificates. They represent written
bank certificate (or other credit financial institute that has a license to issue them) on the deposit of funds, which confirms the depositor's right to receive the deposit and interest on it after the specified period.
d) derivative securities or derivatives. This is a relatively new group of Securities for our stock market, which has already been reflected in legal norms. The main of these securities are: option contracts; futures contracts; forward contracts, swap contracts and others.
e) other financial instruments stock market. These include investment certificates, privatization securities, treasury bonds and others.
3. The main financial instruments the foreign exchange market are:
a) foreign exchange assets that make up the main object financial operations in the foreign exchange market;
b) documentary foreign currency letter of credit used in settlements for foreign trade enterprises (payments under this document are made subject to the submission of the required commercial documents to the bank: invoices, transport and insurance documents, quality certificates and others);
c) foreign currency bank check, which is a written order of the bank owner of foreign currency holdings abroad to his correspondent bank to transfer the amount specified in it from his current account to the holder of the check;
d) a currency bank bill, which is a settlement document issued by a bank to its foreign correspondent;
e) a transferable foreign exchange commercial bill, which is a settlement document issued by the importer to the creditor or direct exporter of the product;
f) currency futures contract, which is financial instrument execution of transactions on the currency exchange;
g) a foreign exchange option contract concluded in the foreign exchange market with the right to refuse to buy or sell foreign exchange assets at a previously stipulated price;
h) currency swap, which ensures parity exchange of currencies of different countries in the course of the transaction;
other financial instruments currency market (repo agreement for currency, currency slogans, etc.).
4. The main financial instruments the insurance market are:
a) contracts for specific types of insurance services (insurance products) that make up the main object financial operations with clients in the insurance market. These contracts are issued in the form of a special certificate - "insurance policy", transferred by the insurance company to the insurer;
b) reinsurance contracts used in the formation financial relationships between insurance companies;
c) emergency subscription (emergency bond) - financial obligation of the consignee to pay his share of the loss from the general accident during the carriage of goods.
5. The main financial instruments gold market are:
a) gold as financial holding holding financial operations in this market;
b) a system of various derivatives financial instruments or derivatives used in transactions on the precious metals exchange (options, futures, etc.).
The system of basic financial instruments the market is in constant dynamics caused by changes in legal regulations state regulation individual markets, using experience of countries with developed market economies, financial innovation and other factors.
Many of the reviewed financial instruments even in the practice of countries with developed market economies were introduced after their development only in the last third of the twentieth century. The development of such new species financial instruments and related financial technologies (collectively called " financial products ") deals with one of the most modern directions financial management - " financial engineering ". American specialists in the field financial engineering - John Marshall and Vikul Bansal proposed a standard regulatory model for the development of a new financial product that has passed appropriate empirical testing.

Financial instrument is one of the new economic categories of the market economy. A financial instrument is understood as any contract under which there is a simultaneous increase in the financial assets of one enterprise and financial liabilities of a debt or equity nature of another enterprise.

TO financial assets relate:

· cash;

· A contractual right to receive funds or any other type of financial assets from another enterprise;

· The contractual right to exchange financial instruments with another company on potentially favorable terms;

· Shares of another company.

TO financial commitments contractual obligations include:

· Pay cash or provide some other type of financial assets to another company;

· Exchange financial instruments with another company on potentially unfavorable terms (in particular, such a situation may arise in the case of a forced sale of receivables).

As follows from the definition of a financial instrument, there are two types of characteristics that make it possible to qualify a particular transaction as a financial instrument:

1) the transaction must be based on financial assets and liabilities;

2) the operation must be in the form of an agreement (contract).

In particular, inventories, tangible and intangible assets, deferred expenses, received advances, etc. do not fall under the definition of financial assets, and therefore, although their possession can potentially lead to an inflow of cash, the right to receive certain financial assets in the future does not arise. With regard to the second characteristic, for example, the relationship with the state regarding tax arrears cannot be considered as a financial instrument, since these relationships are not contractual in nature.

Financial instruments are classified into primary , which include loans and borrowings, stocks, bonds, other debt securities, payables and accounts receivable by current operationsand secondary , or derivatives (sometimes in the specialized literature they are called derivatives), which include financial options, futures, forward contracts, interest rate swaps, currency swaps.

Most financial instruments represent securities traded on the derivatives market. According to the Civil Code Russian Federation (RF) security – this is a document certifying with

observance of the established form and obligatory details of property rights, the exercise or transfer of which is possible only upon its presentation ... When a security is transferred to a new owner, all rights certified by it in the aggregate, including non-property rights, if such are implied based on the nature of this security (for example, the voting right inherently associated with ordinary shares), are automatically transferred to the new owner.

The main indicators characterizing securities are:

· course ;

· dividends (for shares);

· interest (for other securities);

· profitability ;

· issue volume ;

· volume of transactions ;

· characteristics of transactions (primarily options);

· urgency (for securities with maturity).

Securities have a number of fundamental qualities that distinguish them from other types of documents related to property rights. These qualities are: presentability, circulation and marketability, availability for civil circulation, standardization and seriality, regulation and recognition by the state, liquidity, risk.

One of the types of security is bond. She belongs to the class debt securities , which also includes bank certificates of deposit and savings, government short-term liabilities, short-term bank bills, treasury bills and notes, bills accepted by the bank, debt certificates, etc. Debt securities are liabilities placed by issuers on the stock market to borrow funds necessary to solve current and future problems.

The bond is the most common form of debt. This is a security that certifies that its owner has deposited funds in the amount specified in the bond and confirms the obligation to reimburse him for its nominal value within the period provided for therein with payment of a fixed interest, unless otherwise provided by the terms of issue. Bonds are issued:

· Registered or bearer (coupon);

· Interest or non-interest (target for goods or services);

· Freely circulating or with a limited circle of circulation.

Unlike shares, bonds of economic entities do not give their owners the right to participate in the management of a joint stock company, but, nevertheless, are an attractive means of investing temporarily free funds. This is due to the following circumstances:

· Unlike stocks, bonds bring a guaranteed income;

· Bonds belong to the group of easily realizable assets and, if necessary, are converted into cash;

· Payment of interest on bonds of a joint-stock company is made as a matter of priority, i.e. before the accrual of dividends on shares;

· In case of liquidation of the company, bondholders also have a pre-emptive right over shareholders;

investing in government bonds provides certain tax incentives (income on these securities is not taxed,

A walkie-talkie with government bonds is charged at a reduced rate, bonds can be used as collateral when obtaining a loan, etc.).

Interest-bearing bond income is paid by paying coupons to bonds. The payment can be made periodically or in a lump sum when the loan is repaid by charging interest to the face value. Coupon - the part of the bond certificate, which, when separated from the certificate, gives the owner the right to receive interest (income), the amount and date of receipt of which are indicated on the coupon.

Bill of exchange - an order security that certifies the unconditional obligation of the drawer (promissory note) or another payer specified in the bill (bill of exchange) to pay the amount indicated in it to the owner of the bill (bill holder) upon the onset of the deadline provided for by the bill. As a promissory note, a bill of exchange has a number of features, the most significant of which are as follows:

· abstractness , which consists in the fact that the bill of exchange is not legally tied to a specific agreement, i.e. having arisen as a result of a certain transaction, the bill is separated from it and exists as an independent document;

· indisputability , expressed in the fact that the holder of a bill is free from objections that may be put forward by other participants in the bill of exchange agreement or in relation to them;

· right of protest , consisting in the fact that if the debtor does not pay the bill, the holder of the bill can make a protest, i.e.

· joint responsibility , which consists in the fact that with a timely protest, the holder of a bill has the right to sue all persons associated with the circulation of this bill of exchange, and against each of them separately, without being forced to follow the sequence in which they pledged.

Distinguish between promissory notes and bills. In operation with by promissory note two persons are involved: the drawer, who is obliged to pay the bill, and the drawer, who is entitled to receive payment. Bill of exchange (draft) is issued and signed by the creditor (drawee) and is an order to the debtor (drawee) to pay within the specified time the amount indicated in the bill to a third party - the first holder (remitter). A bill of exchange can be transferred from one holder to another by means of a special transfer inscription - endorsement executed by the endorser on the reverse side of the bill or, if there is not enough space for transfer records, on an additional sheet - allonge ... By means of endorsement, a bill of exchange can circulate among an unlimited number of persons, becoming a means of paying off debt claims.

The list of details that a bill of exchange must contain is strictly regulated by law. The bill contains:

· The name "bill" included in the text of the document and expressed in the language in which this document is drawn up;

· Indication of the due date;

· An indication of the place where the payment is to be made;

· The name of the person to whom or by order of whom the payment should be made;

· Indication of the date and place of drawing up the bill;

· Signature of the person who issued the bill (drawer), etc.

Distinguish between treasury, bank and commercial bills. Treasury bill issued by the government and represents a short-term government obligation with a maturity of three, six or twelve months. Bank bill issued by a bank or a union of banks (issue syndicate). The income of the holder of a bank bill is calculated as the difference between the redemption price, equal to par, and the sale price, carried out on a discount basis. Commercial bill used for lending to trade transactions. In the transaction, as a rule, a bill of exchange is used, and the bank acts as the remitter.

The most popular are bank bills. The main reasons for this are:

· profitability - depending on the term, amount, currency and reliability of the bank, the profitability of its promissory note may vary significantly;

· reliability - in particular, promissory notes issued by groups of large banks, which bear joint responsibility for them, are practically absolutely reliable;

· liquidity - almost all issuing banks provide for the possibility of early repayment. Bills of exchange can be used as payment by drawing up an endorsement on the bill;

· collateral value - a bill of exchange can be used as a savings instrument and as collateral. Some exchanges accept bank promissory notes as payment to guarantee the execution of futures contracts.

Check – is a monetary document in the form established by law, containing an order from the account holder who wrote the check to pay the owner of the check the amount of money indicated in it. Organization of settlement transactions using checks involves the interaction of at least three parties: the drawer, i.e. the person who wrote the check, the check holder, i.e. the person who accepted the check as payment for the goods, work or services provided, and the payer of the check, i.e. the bank in which the drawer's account is opened. The check serves as the most important means of payment, which expresses the unilateral obligation of the drawer to pay the check if the payer refused to pay. When paying by checks, the account holder - the drawer - gives an unconditional written order to the bank that issued the payment checks to make the payment the specified amount to the check holder or by his order. The obligation to pay the check is determined by the agreement between the drawer and the paying bank.

Certificate of Deposit - a written certificate of the credit institution (issuing bank) on the deposit of funds, certifying the owner's right to receive the deposit amount and interest on it after a specified period.

Certificates of Deposit are intended mainly for business entities. The attractiveness of a certificate is that it can be transferred from one owner to another, and its price at the time of transfer depends on the capacity of the secondary market, the maturity of the certificate and the current interest rate on financial instruments of the same class.

Savings bank certificate - has the same mechanism of action as a certificate of deposit, but is intended for individuals. The certificate can be issued for a specified period or on demand. In the event of an early return of funds on an urgent certificate, at the initiative of its owner, a reduced percentage is paid, the amount of which is indicated in the agreement concluded when the money is deposited for storage.

Bill of lading - is a document of title through which the sea transportation of goods is registered. List of mandatory

details and conditions for drawing up this document are defined in the Merchant Shipping Code of the Russian Federation. The bill of lading is issued by the carrier to the sender after receiving the goods and confirms the fact of the conclusion of an agreement between them. As a security, a bill of lading can be registered (the name of a specific consignee of the cargo is indicated), order (the cargo is issued by the order of the sender, consignee or bank), to bearer (any person who presented this document can be the consignee).

Promotions - equity securities confirming the right of their owner to participate in the management of the company (usually, with the exception of preferred shares), in the distribution of the company's profits and in obtaining a share of the property, proportional to its contribution to the authorized capital, in the event of the liquidation of this company.

One of the most important conditions for the functioning of the capital market is information on securities. There are information of the following types:

· Statistical (market value, volume of transactions, amount of dividends, profitability, etc.);

· Analytical (analytical reviews and assessments, recommendations to investors, judicial precedents, etc.);

· Regulatory (legislative and regulatory acts governing the issue and circulation of securities).

It is possible to distinguish two types of characteristics that allow qualifying a particular procedure or transaction as related to a financial instrument: the basis of the transaction should be financial assets and liabilities; the transaction must be in the form of a contract.

1. Financial instruments. Essence and classification of financial instruments

When analyzing investment activity in general, and investment processes in the securities market, in particular, it is necessary to include the concept of a financial instrument among the basic terms.

In international financial reporting standards, a financial instrument means any contract that simultaneously gives rise to a financial asset for one party and a financial liability or equity instrument for the other party.

The definition of a financial instrument refers only to those contracts that result in a change in financial assets and liabilities. These categories are not of a civil, but of an economic nature.

Financial assets include:

· Cash (cash on hand, as well as on settlement, currency and special accounts);

· A contractual right to claim cash or another financial asset from another company (for example, a receivable);

· A contractual right to exchange financial instruments with another company on mutually beneficial terms (for example, an option on bonds);

· Equity instrument of another company (shares, units). A financial liability is any obligation under a contract:

· Exchange financial instruments with another company.

A share instrument is a way of participating in the capital (authorized capital) of an economic entity.

In addition to equity instruments, debt financial instruments - loans, borrowings, bonds - play a significant role in the investment process, which have specific characteristics, which, in turn, have corresponding consequences for the issuers of these instruments (lenders) and holders of instruments (borrowers).

So, we can distinguish two specific features that allow qualifying a particular procedure or operation as related to a financial instrument:

· The basis of the transaction should be financial assets and liabilities;

· The transaction must be in the form of a contract.

Thus, financial instruments are by definition contracts and can be classified accordingly. All financial instruments are divided into two large groups - primary financial instruments and derivatives.

2. Primary financial instruments

Primary financial instruments are instruments that definitely provide for the purchase (sale) or delivery (receipt) of a financial asset, resulting in mutual financial claims of the parties to the transaction. In other words, the financial assets resulting from the proper execution of these contracts are predetermined in advance. Such assets can be cash, securities, accounts receivable, etc.

Primary financial instruments include:

· Loan agreements;

· Credit agreements;

· Bank deposit agreements;

· Bank account agreements;

· Financing agreements against the assignment of a monetary claim (factoring);

· Finance lease agreements (leasing);

· Contracts of surety and bank guarantee;

· Contracts on the basis of equity instruments and cash.

Loan agreement. Under the loan agreement, one party (the lender) transfers money or other things to the ownership of the other party (the borrower), and the borrower undertakes to return the same amount of money (the loan amount) or an equal amount of other things of the same kind and quality received to the lender.

A loan agreement is a specific version of a loan agreement, the lender of which is a bank or other credit institution. In this case, the loan agreement has certain features: the subject of the loan agreement can only be money; an obligatory element of the agreement is the condition on the payment of interest for the use of the loan.

Bank deposit agreement. Under the agreement of bank deposit (deposit), one party (bank), which has accepted the amount of money (deposit) received from the other party (depositor), undertakes to return the amount of the deposit with interest on the conditions and in the manner prescribed by the agreement. Such an agreement is also a type of loan agreement, in which the depositor acts as the lender, and the bank acts as the borrower. The bank deposit agreement does not allow settlement transactions for goods (works, services), and at the end of the term of the agreement, the amount of the deposit is returned to the lender.

Financing agreement against the assignment of a monetary claim (factoring). Under a factoring agreement, one party (financial agent) undertakes to transfer funds to the other party (client) against the client's (creditor's) monetary claim against a third party (debtor) arising from the client's provision of goods (performance of work or services) to a third party, and the client undertakes to cede this monetary claim to the financial agent.

Financial lease (leasing) agreement. Under a lease agreement, the lessor undertakes to acquire the property specified by the lessee for a fee for temporary possession and use.

Surety and bank guarantee agreements. Common to all the contracts described above was that the result of their execution was a direct change in the assets and liabilities of counterparties. Equity instruments and money. In the previous classifications, equity instruments and cash were classified as financial instruments.

3. Derivative financial instruments

A derivative financial instrument is an instrument that provides for the purchase (sale) of the right to purchase (supply) an underlying asset or to receive (pay) income associated with a change in some characteristic parameter of this underlying asset. Therefore, unlike a primary financial instrument, a derivative does not imply a predetermined transaction directly with the underlying asset.

The basis of many financial instruments and transactions with them are securities. A security is a document certifying property rights in compliance with the established form and mandatory details, the exercise or transfer of which is possible only upon presentation of this document. Derivative financial instruments include:

· Futures contracts;

· Forward contracts;

· Currency swaps;

· Interest rate swaps;

· Financial options;

· REPO operations;

· Warrants.

Forward and futures contracts are contracts to buy and sell a commodity or financial instrument with future delivery and settlement. The owner of a forward or futures contract has the right to: buy (sell) the underlying asset in accordance with the terms and conditions specified in the contract and (or) receive income due to changes in the prices of the underlying asset. Thus, price is the subject of bargaining in such agreements.

Futures contracts are essentially the development of forward contracts. Depending on the type of the underlying asset, futures are divided into financial and commodity.

Forward and futures contracts are essentially so-called hard deals, i.e. each of these contracts is binding on the parties to the contract. However, these two types of contracts can differ significantly in their purpose. A forward contract is most often concluded with the aim of actually selling (buying) the underlying asset and insures the supplier and the buyer against possible price changes, i.e. the main motive of the transaction is the desire of the parties to make the consequences of the transaction more predictable. In the case of a futures contract, it is often not the actual sale (purchase) of the underlying asset that is important, but the gain from price changes, i.e. arrived. Thus, futures contracts are characterized by speculativeness and greater risk. On the other hand, a forward contract is more hedging in nature. Hedging (as opposed to speculation) is understood as a transaction of purchase and sale of special financial instruments, which partially or fully compensates for losses from changes in the value of the hedged item (asset, liability, transaction).

In addition, there are other differences between futures and forwards. A forward contract is “tied” to the exact date, and a futures contract to the month of execution, and the price changes for goods and financial instruments specified in the contract are carried out daily throughout the entire period until their execution. Forward contracts are specified, futures contracts are standardized. In other words, any forward contract is tailored to the specific needs of specific customers. Therefore, forward contracts are mainly over-the-counter trades, while futures contracts are traded on futures exchanges, i.e. there is a permanent liquid futures market. Therefore, if necessary, the seller can always adjust its own obligations for the supply of goods or financial instruments by redeeming its futures. The efficiency of the futures market, its financial stability and reliability are ensured by the clearing system, within which the market entities are recorded, the state of their accounts and their deposit of guarantee funds (in the form of collateral) are monitored, and the amount of gains (losses) from participation in futures trading is calculated. All transactions are executed through the clearing house, which becomes a third party to the transaction - thus, the seller and the buyer are released from obligations directly to each other, but for each of them there are obligations to the clearing house.

The most widespread are futures contracts in the field of trade in agricultural products, rolled metal products, oil products and financial instruments.

An option (the right to choose) is a contract concluded between two parties - the seller (issuer) and the option buyer (its holder). The holder of the option acquires the right, within the term specified in the terms of the option, to exercise the contract, or sell them to him (a put option), sell the contract to another person, or refuse to execute the contract.

An option is one of the most common financial instruments in a market economy. In formal terms, options are the development of futures, but unlike futures and forward contracts, an option does not provide for the obligation to sell (buy) the underlying asset, which under unfavorable conditions can lead to significant losses.

A feature of the option is the fact that as a result of the transaction, the buyer acquires not the actual financial assets or goods, but only the right to buy (sell) them. Depending on the types of underlying assets, there are several types of options: on corporate securities, on government bonds, on foreign exchange, commodities, futures contracts and stock indices.

The right to preferential purchase of the company's shares (share option) is a specific derivative financial instrument, the introduction of which was originally associated with the desire of shareholders to increase the degree of control over the joint-stock company and to counteract the decrease in the share of income due to the appearance of new shareholders in the additional issue of shares. This security indicates the number of shares (or part of a share) that can be purchased for it at a fixed price - the subscription price. A similar procedure is significant, for example, in the transformation of a closed joint stock company into an open company. The rights to preferential purchase of shares as securities are traded on the stock market independently, while their market price may differ significantly from the theoretical one, which is primarily due to investors' expectations regarding the investment attractiveness of shares of a given company. If shares are expected to rise in price, the market value of the right to purchase, in which case investors can generate additional income. The main significance for the issuing company of this type of financial instrument is related to the fact that the process of purchasing shares of this company is intensified.

A warrant is a security that gives the right to buy (sell) a fixed number of financial instruments for a certain time. Literally, a warrant means guaranteeing an event (in this case, the sale or purchase of a financial instrument). Thus, the purchase of a warrant can be regarded as the implementation by the investor of a strategy of caution and a desire to reduce risk in the case when the quality and value of securities in the opinion of the investor are insufficient or difficult to determine.

There are various types of warrants in the stock market. Typically, a potential warrant holder acquires the ability to buy a specified number of shares at an agreed price and within a specified period. In addition, there are perpetual warrants that make it possible to buy a financial instrument at any time. The warrant has no maturity date and value. A warrant does not give its owner the right to interest, dividends, and its owner does not have the right to vote in decision-making, unlike the owner of the share. A warrant can be issued simultaneously with other financial instruments, and thereby increase their investment attractiveness, or separately from them. In any case, after some time, the warrant begins to circulate as an independent security - in this case, possible transactions with it can bring both income and loss. Unlike purchase rights, which are issued for a relatively short period, the duration of a warrant can be calculated for several years. As a rule, warrants are issued by large firms and are relatively rare - usually warrants are issued together with a bond issue of the issuing company, which achieves both the attractiveness of the loan and the possibility of increasing authorized capital companies in the event of the exercise of warrants.

Swap (exchange) - an agreement between two subjects of the financial market for the exchange of liabilities or assets in order to reduce the associated risks and costs. The most common types of swaps are interest rate and currency swaps. Swaps provide an opportunity to combine the efforts of two clients (companies) to service received loans in order to reduce the costs of each.

REPO operations - an agreement on borrowing securities against a guarantee of cash or on borrowing funds against securities. This agreement is sometimes referred to as a securities buyback agreement. This agreement provides for two opposite obligations for its participants - the obligation to sell and the obligation to purchase. A direct repo operation provides that one of the parties sells a package of securities to the other party with the obligation to buy it back at a predetermined price. Buyback is carried out at a price higher than the original one. The difference between prices, reflecting the profitability of the operation, is usually expressed in annual interest and is called the repo rate. The purpose of a direct REPO transaction is to attract the necessary financial resources. A reverse REPO transaction provides for the purchase of a stake with an obligation to sell it back; the purpose of such an operation is to place free financial resources. REPO transactions are carried out mainly with government securities and relate to short-term transactions - from several days to several months. In a sense, a repurchase agreement can be viewed as a collateralized loan.

Analysis of the main financial instruments allows us to draw the following conclusions regarding their purpose: financial instruments are designed to implement the following four main functions:

· Hedging;

· Speculation;

· Mobilization of funding sources, including investment activities;

· Assistance to current operations (with primary financial instruments dominating).

conclusions

In international financial reporting standards, a financial instrument means any contract that simultaneously gives rise to a financial asset for one party and a financial liability or equity instrument for the other party.

The definition of a financial instrument refers only to those contracts that result in a change in financial assets and liabilities. These categories are not of a civil, but of an economic nature.

Thus, financial instruments are by definition contracts and can be classified accordingly. All financial instruments are divided into two large groups - primary financial instruments and derivatives.

Primary financial instruments are instruments that definitely provide for the purchase (sale) or delivery (receipt) of a financial asset, resulting in mutual financial claims of the parties to the transaction.

A derivative financial instrument is an instrument that provides for the purchase (sale) of the right to purchase (supply) an underlying asset or to receive (pay) income associated with a change in some characteristic parameter of this underlying asset.

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