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THE PRIORITY OF FINANCIAL MARKET DEVELOPMENT TRENDS, MODERN
TRENDS AND PERSPECTIVES
Shoyimova Charos O’rol qizi
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A student of Tashkent institute of Finance
As economic categories, financial markets and institutions are of enormous interest to
academics and professionals. Large businesses will continue to operate as usual, regardless of
the market economy's harsh circumstances, and they won't ignore the current financial
market procedures and operations either. They assert that financial managers must be
familiar with the fundamentals governing the structure and operation of financial markets
and institutions. The management of financial flows, their start, fulfillment of these flows, and
organization of each party's ultimate goal (i.e. implementation, actual realization), i.e. the
announcement of the offer, are today's objectives of financial management. Financial donors
and recipients both contribute to the initialization of the financial flows. The beneficiaries
have a portfolio of flows, thus they are able to manage the financial resources that the donors
can represent. Global experience has shown that financial markets without its instruments
reflect the real market economy. This thesis forms the foundation of neoclassical financial
theory. In addition, research of macro- and microeconomics can validate it without any
supporting data. E. Show and R. McKinnon, two American economists, separately created the
macroeconomic ideas of financial deepening and financial repression, namely in 1973
(Brigham and Ehrhardt, 2014). According to the idea of financial deepening, the
establishment and growth of financial institutions and markets are essential to the process of
economic development. As of now, larger rates will be offered for the accumulation of
financial assets than non-financial assets. Financial repression refers to systemic control (by
the government or an oligopoly)*, which is typically carried out through interest rate
regulation and control. Financial suppression occurs frequently when a market economy is
still in the process of developing, which is reflected in their obligations and role in the
structure of financial institutions, markets, assets, and financial flows, as well as in the
procedures and things that investments and finances are made of. In such a situation,
investments in non-financial assets (such as gold and real estate) are frequent; additionally,
resources are inactive and businesses are in need of financial resources. Yet, financial
suppression is replaced by financial deepening through institutional growth and economic
improvement. In the system of strategic funding for large industrial subjects, particularly
those creating the system, capital markets unquestionably hold a dominant position for the
subjects of the global, national, or regional economy.
The majority of businesses, especially big ones, have tight relationships to numerous
financial markets. Each of them operates an informal and organized structure for trading in
financial instruments and assets. At these markets, transactions involving money or its
equivalent, the issuance of credits, the mobilization of capital, and other activities take place.
As a result, various combinations of the two common financial processes of mobilization and
investment are carried out. If objective of the financial institutions is provision of the most
efficient displacement of cash resources from owners to the borrowers, function of the
financial market is organization of trading with financial assets and liabilities between
purchasers and sellers of the financial resources. Solving this task in Georgia is becoming
difficult due to particular objective and subjective reasons, as it is necessary foresee various,
and sometimes diametrically reversed interest of the participants of financial market,
important risks of performing financial liabilities and etc.
We have distinguished between whether it is necessary to incorporate the fundamentals
of the yield curve for the Lari, the national currency of Georgia, at the Georgian financial
market. As part of a cooperative effort with the EBRD, it was created with the assistance of
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professionals from the Central Bank of the Czech Republic. The following primary tasks are
the purpose of the manuscript's conditioned setup and solution in the article:
Today, financial market of Georgia is in the stage of development. Though, important
role in the development of economy of the country is granted to the effective functioning of
the securities market. Developing countries suffer non-materiality of their own resources. As
for one of the best means of attracting investment, capital is activation of the securities
market. Notwithstanding positive changes in Georgia, there are fundamental problems,
preventing effective functioning. In the first place, main source of attracting financial
resources for the market is the loans received from the commercial banks, while source of
funding with the share capital is relatively unused. On the other hand, according to the
Georgian economists, if we refuse centralized management and want to manage the country
with the principles of market economy, main thing is to create such macro-environment,
where economy will be self-managed, working in the regime of self-regulation. One of the
supports of the market economy is corporate management, i.e. when the enterprise is not
managed unilaterally, but under the dictation of the market to make decision on demand and
distribution, as well as management. When there are no joint stock companies in the country,
market price of the share is the most unbiased index. Price of share at the market is the
combined index of multiple nuances, particularly: how much profitable the share is, how
much interesting it is to the investor, how it rises or decreases price. Market price of
particular share is the best support to the manager. The manager may check the listing in the
morning and see what happens at the stock exchange regarding his company and
competitors; if the price of shares rise or fall, where to search for the defect or change
something in the management.
REFERENCES:
1.Brigham, E.F. and M.C. Ehrhardt, 2014. (With Thomson One
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Business School edition 1
–
year
Printed Access Card) 14th Edn., Mason, Ohio:
2.South - Western College Pub. Eugene, B.F. and E.C. Michael, 2005. Financial management: Theory
and practice with Thomson one
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Business School Edition 1
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Year Printed
3.Access Card Twelfth (12th) Edition Hardcover
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January 20. Ghaniashvili, M., 2014. Problems with
development of financial market in Georgia. Available from http://sazogadoeba.ge/?post_id=1493.
4.Greenspan, A., 2001. Changing capital market: Implications for monetary policy. A Symposium
Sponsored by the Federal Reserve Bank of Kansas City Federal Reserve Bank of Kansas City Simposium.
5.Jgerenaia, E., 2016. Securities market development perspectives. Available from
http://sazogadoeba.ge/?post_id=1493.
6.Kohn, M., 1993. Money, banking, and financial markets. Fort Worth, TX: The Druden Press.
7.Loladze, G., 2015. LTD broker company caucasus capital group. Founder and general direqtor.
Investment market in Georgia
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problems, causes and persprctives Available from
http://georgia2020blog.org/2015/12/02.
8.Madura, J., 2014. Financial markets and institutions (With Stock Trak Caupon). 11th Edn., Mason,
Ohio: South - Westem College Pub.
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Role of financial management, modern trends of development of financial markets;
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Globalization and financial market;
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Complexities of issuing securities in Georgia;
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The essence of the important attribute of financial market – yield curve;
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The factors conditioning form of the yield curve;
