Financial business is a very attractive field of activity. It is often called both the most profitable and the most expensive. What is the essence of this activity? This business provides for the purchase and sale of various financial assets in order to obtain benefits. It can be carried out both within a certain state, and throughout the planet.
general information
Financial operational activities may be carried out by: the state, central, commercial and investment banks, currency and stock exchanges, non-state and state pension funds, electronic markets, insurance, trading and commercial companies, as well as individual individuals, both residents of the country and guests from abroad. If we analyze the activities of all of the above, then two directions can be derived:
- Issue of securities (bonds and shares) and money (treasury bills and banknotes).
- The provision of financial services.
To carry out activities at the international level, a financial business partner is required from the Russian Federation. Who is that? This is an institution that will act as an intermediary between the person conducting the activity and the international market. But enough to say in general, let's move on to the specifics and consider examples.
Commercial Bank
This is an organization that is engaged in credit and deposit activities. She accepts free funds from the population for conservation and gives them to those who need them (subject to the availability of opportunities to give money). The main income of banks is the difference between the percentages that are obtained from loans and given to deposits. The activity of this structure can be divided into three categories: passive, active, and mediation. In the first case, the institution is involved in raising funds. Vigorous activity is engaged in the allocation of funds. And with mediation, the bank simply conducts a series of operations through its accounts.
Alas, such knowledge is not enough to open a financial institution. Now for this you still need to get a license, have 180 million rubles and approval from many structures. No one said that it is cheap and easy - this financial business. Examples of the activities of commercial banks can be found almost everywhere in the Russian Federation.
Stock Exchange
Theoretically, their main goal is to determine the real value of assets, as well as to promote capital mobility. The basis for stock exchanges is supply and demand. Moreover, these are extremely sensitive indicators. Brokers closely monitor even the most minor changes.
In the case of the stock exchange, here you can be both a participant (broker) and the owner of a representative company. And it is still unknown what is more difficult. In the case of a broker, you have to constantly monitor the price. Indeed, when it comes to thousands or millions of shares, even the smallest fluctuation matters. To facilitate their own work, they are united under the banner of a brokerage firm. The owner’s task is to ensure the selection of highly qualified and experienced employees who will not allow the company to burn out, as well as ensure an influx of customers.
Some universal features
Each organizational structure has its own specifics of activity. But there is something that unites any financial business. Examples of this will now be given. These are profitability, high risks and computerization. It should also be noted the fact that an increasingly wider segment of the population is attracted to this activity.So, according to some reports, approximately 45% of the population is participants in stock exchanges in the USA. In the Russian Federation, such a contingent is limited to two to three thousand people. But more developed is the lending market. And although it is now more difficult to get money than it was, say, in 2007, it is still possible. In this regard, the coverage of the population of the Russian Federation is more substantial. But let's continue to consider the financial business, examples of activities, as well as its weaknesses and strengths.
Work with currency
At one time in the Russian Federation there was a kind of flash of desire to play on the difference in courses. It seemed that this was a simple activity. But, alas, it absorbs a lot of time. Therefore, only brokers are professionally engaged in this. After all, the foreign exchange market "lives" five and a half days a week and does not recognize state weekends and holidays. In most cases, the fluctuations on it are insignificant, but subject to certain conditions (for example, compulsory transfer by companies of earned funds to the money of their country of registration), they can increase significantly.
Financial representation
We think that many have heard of a man like Warren Buffett. This is one of the most famous investors who directs his capital to good projects, making money on it. Do not believe it, but the only asset he founded is the Warren Buffett Investment Fund. In other words, he earned his entire fortune by only wisely investing the money of his clients and his own funds.
Initially, this now richest man eked out a rather miserable life. But over time, he revealed his talent as an analyst and investor, recommending to others where to invest. For himself, he asked for only a modest percentage. He invested part of the money received along with clients' funds and eventually became the most famous investor. Who knows, maybe there is someone among us who can surpass him?
For such cases, financial representation is suitable. It has both advantages and disadvantages. The former include mobility, flexibility, the ability to quickly concentrate resources, and the relative simplicity of operations. Among the shortcomings are high risks, the presence of significant government regulation and a strong dependence on political risks and the state of international financial markets.
Conclusion
In today's world, financial business is considered extremely risky. Quite often you can hear the opinion that they give him the palm of supremacy among all areas where you can lose your money. It should be noted that indeed, literally only a few remain in this business. Significant advantages in the financial business are large players. What are only worth, for example, the conditions for creating a commercial bank, which were announced above. They can quickly concentrate significant resources, have access to many financial institutions, an established model of functioning, and so on. To succeed in this area, you need to have a good understanding of the market where you have to work. Practical experience will not hurt. As well as significant knowledge and analytical skills. After all, a fee for incompetence is lost money and time.