THE FINANCIAL MARKET AS THE BASIS OF ECONOMIC CORPORATE DEVELOPMENT

Abstract

The article examines the role and importance of the financial market in the modern economic system. It is determined that the financial market is one of the spheres of market economic relations, the specificity of which is that the object of sale is financial funds. It was found that in the early stages of financial relationship development, financial asset purchase and sale agreements were concluded directly between the owner and the consumer of capital. However, as the world's wealth and scale of production grows, the volume of such agreements has increased substantially, and the conditions for their implementation have become more difficult. It is noted that the financial market consists of two fundamentally different areas - the securities market and the bank loan market. It has been investigated that corporations are one of the subjects of the financial market. They act on it as large issuers, sellers of their securities and large investors who invest their temporarily free funds in financial assets. As an issuer, the corporation acts on the financial market as a debtor-borrower as an investor - a lender-lender. In the financial market, the corporation functions as a net borrower. It is established that the corporation is active in all spheres and segments of the financial market: in the money and stock markets, in the market of bank loans, in the primary and secondary markets, in the stock and over-the-counter markets. Market choice is determined by the operational and strategic goals that corporate financial managers set for themselves. In the money market, the corporation acts as an issuer of short-term securities, in the market of bank loans - a borrower of short-term capital in order to mobilize short-term funds to finance working (working) capital. In the stock market, it issues long-term securities in order to finance long-term development projects. It is noted that the main advantage of a large corporation as a form of business organization is the ease of transferring ownership rights and the relatively quick receipt of additional cash through the issue of new shares. This advantage is realized in the financial (stock) market, which plays an important role in corporate financing of economically developed countries. The conclusions about the role and importance of the corporation's activity in the financial market have been made.