Both legal, and natural persons can be members of stock exchanges. In foreign practice it is possible to allocate the different attitude towards category of members of stock exchange. In one countries the preference is given to natural persons (to SSh, in others – legal – (Japan, Kanad, in the third (their majority) – does not become distinctions between natural and legal entities.
Components of securities market have the basis not this or that type of a security, but a way of trade in this market in the broadest sense. From these positions in securities market it is necessary to allocate the markets:
Regulates and directs financial streams (if to present the market as a live organism, the securities market regulates blood circulation; without the continuous movement of the capital and investments the market will die, as an organism without blood circulation).
The first task of the exchange consists in providing a place for the market, that is to centralize a place where can occur both sale of securities to their first owners, and their secondary resale.
Initially stock exchange was created to encourage and support the trade in securities providing observance of interests of its participants. Therefore the exchange was considered as properly organized place for trade.
Trade in securities can be carried out in the traditional and computerized markets. In the latter case business is done through the computer networks uniting the corresponding share intermediaries in the uniform computerized market which characteristic features are:
The exchange market is a trade in securities at stock exchanges. The off-exchange market is a trade in securities, passing stock exchange. The exchange market is always organized securities market as business on it is done strictly by rules of the exchange and only between exchange intermediaries who are carefully selected among all other participants of the market. The off-exchange market can be organized and unorganized. The organized off-exchange market is based on computer communication systems, trade and service on securities.
So, it is necessary to distinguish the markets where it is only possible to invest the capital, or primary markets, and actually financial markets where these capitals collect, concentrate, centralized and put eventually in primary markets. The financial markets, or as they are called still, the markets of the capitals, are the markets of intermediaries between primary owners of money and their end users.
Nominal securities, data on which owners are entered in the special register and transition is right on which demands obligatory identification of the personality, and the securities to bearer which are not registered and transferred to other person without identification of the personality;
The important institutional mechanism of securities market is the stock exchange. In this work the background exchange, securities market is investigated, the description of the Yerevan Stock Exchange which certainly is the main lever, a driving force of the Armenian securities market in detail is given.
Carrying out the specified task, the exchange assumes duties to serve as the intermediary at implementation of calculations. It is meant it that the exchange assumes responsibility for provision of a guarantee on all confirmed transactions and that purchases will be paid, and all sold shares will be delivered for transfer addressed to the new buyer or according to his instruction to other name. It is extremely important function of the exchange as it gives to all buyers and sellers a guarantee that they will receive completely results of the operations, otherwise the exchange, being guided by the rules cancels transactions.
It is impossible to imagine the developed country without securities market. After all the securities market is that institute in which all national economy, whether it be industrial sector, sector of service or financial sector is reflected. If in the country economic growth is noticed, the securities market will prosper if on the contrary – crisis is possible. Now the world economy is so integrated that fluctuations of one securities market (London, Frankfurt, Tokyo, Hong Kong, Paris, etc. is of course about large securities markets, such as New York) are reflected practically in all other securities markets.
At the moment in the world there is no recognized definition of a security uniform accurate, all. If to try to generalize various definitions of securities, it is possible to give the general rather neutral and not contradicting various definitions, definition of securities: