The subjects of the market are individuals or specialgroups that are specifically created from people who are called upon to jointly carry out activities in a particular economic sphere. In the modern world, they usually act in the form of various organizational structures (enterprises, corporations, firms, etc.). The subjects of the market are state organizations, provided they establish rules for them, approaching the norms of existence in the economic sphere of legal entities and individuals. Contractual relations (purchase, sale, lease, hiring), which are produced in strict accordance with a written agreement between the buyer and the seller, allow the various infrastructures to enter into certain economic relations.
Various actors of the market, entering intodirect interaction with each other, are included in the circuit. It represents a constant movement of incomes and expenditures, the money supply, various resources and goods in the economic sphere.
Consumer demand is formed by domesticfarms. They are constantly in need of consumer goods and services. The calculation of cash is made in this case at the expense of income received when providing labor, capital, land, and other production factors to enterprises. Upon receipt of the organization, they are included in their technological cycle and sell finished goods to households.
Products, household appliances, clothing and variousservices complete their movement. After that, the economic cycle is resumed. And this movement is carried out continuously. Indicators of cash and commodity flows determine for a set period. For example, this period of time can serve as a year. The numerical expression of goods available for sale and the cash equivalent of household property is a stock. The annual production of goods is a flow.
The main economic indicator for the countryis a gross domestic product. It is a monetary expression of goods and services produced during the year. The composition of the national product includes only that a complete production cycle has passed and is ready for consumption. Semifinished items and various intermediate blanks are not included in this list.
However, market entities are not only enterprisesand households. Participation in the economic cycle is taken by the state and financial organizations (most of them are represented by banks). These four market participants are the main ones. The state collects taxes and incurs certain types of costs. It buys products and produces from its budget the payment of wages.
The subjects of the financial market are banks that fulfillfunction, the main direction of which is the redistribution of cash flows. They are the main participants in economic relations with the use of special tools. They are financial assets. The instruments operated by participants in this market segment are divided according to the terms of circulation for:
- short-term (turnaround time up to twelve months);
- long-term (circulation period more than a year);
An important group of existingInfrastructures are the participants of the securities market. They are traditionally referred to as issuers, investors, stock intermediaries, as well as state bodies that control and regulate. The subjects of the securities market are organizations or individuals who perform transactions for the sale and purchase of these documents or perform settlements or turnover with their participation.