In Russian     





Investor Guide
Letter  of credit - the letter of credit is the double bond of the bank, which is given out by it by order of the client-applicant of the letter of credit (for example, the recipient of production) in favor of its counteragent under the contract (for example, the supplier of production), according to which the bank, which has established  the letter of credit (issuing bank), should  satisfy a payment obligation for the beneficiary or accepts the beneficiary’s bills of exchange  and pay them in time or authorizes the  other bank to make such payments and the acceptance of the beneficiary’s bills of exchange  under the assumption of performance of the conditions, on which the letter of credit (for example, against the presented documents, within a given time, etc.) is drawn.
Actuary - the mathematician, statistician, working in the insurance companies and  pension funds, calculating the misfit risks of payments flows, connected with formation of monetary resources (insurance premiums, pension contributions) and payments on insurance and pension obligations, with the allowance for risk, profitability and liquidities of assets, into which the insurance companies and pension funds invest the debt capital as institutional investors, providing the income, covering (along with insurance premiums and pension payments) their future obligations.
Actuarial risk - risk of the impossibility of the assume obligations performance (in insurance
and pension business).
Share - a security,  issued by the joint-stock company and certifying the undivided share of its owner in  own funds  of the company, its property and incomes. A share issue is not the loan, shares are the titles of ownership for the property of joint-stock company.
Underwriting - the activity of investment bank for the initial placement of the client’s securities issue on the basis of guaranteeing of its complete or partial purchase for a determined price.
Annuity - any investment, the income on which is paid on regular basis, in the fixed intervals within a given time/a certain number of years. At the same time there are various kinds of annuity: with equal and variable payments, eternal and limited in time, unconditional and with conditional payments (when the payment takes place at realization of any condition). Calculations of annuities  are widely used in crediting (paying of  loan is considered as a periodic payment flow), at  the equity market(a payments flow from payment of the fixed percentage under the bond), in pension and insurance proceedings (perpetual payments from the once invested large sum), in deposits of money(a percent flow from the  deposits investment), etc.
Auction - a way of the market organization of trade where both buyers and sellers compete with each other, providing the fixing of the most fair competitive prices. Auction is characterized by: a) the  public tenders, b) public competition of buyers and sellers in fixing of price and other conditions of securities transactions, c) presence of the mechanism of comparison of applications and offers for sale and establishment of such applications and offers, which  satisfy mutually each other and can give occasion to bargaining.
Balance sheet risks - the risks, arising in connection with operations, reflected in balance (instead of on off-balance accounts).
For example, for the bank credit risks are balance under loans and investments into bonds, percentage risk on assets and obligations with the variable interest rate, currency risk under investments into currency assets, market risk on investments in securities, etc. Accordingly, balance sheet risks are not connected with issue of warrants, avalisation of bills, commission business with securities and others off-balance operations.
Banking  activities – are usually divided into  active and passive (on formation of bankroll). Besides banking activities are usually considered as the financial services,  given and sold to the clients. Loans, leasing, hypothecary and designed financing, investments into securities, factoring, investments into the affiliated financial companies, etc are related to active banking activities.  Administration  of customers’ accounts and payment and settelment and cash services, rendered for them, correspondent banking, issue of certificates of deposit and savings certificates, commercial papers, bonds, etc. are related to passive and is active-passive operations. Significant capacity of banking operations concerns to trust services, underwriting and avalisation, financial consultation, carrying out of complex financial innovative strategy for constituency. The part of bank activity is directed to gamble (currency trade, work with derivative financial tools, etc.).
Broker - a legal or natural person, who is carrying out the transactions with the goods, securities, other financial tools on the basis of contracts of the commission contracts or the order, at the expense and in interests of clients. Acts at the financial market on the professional basis according to the requirements, established by the financial regulator to sufficiency of the capital, operational ability,  professionalism, a control system of risks, etc.
Junk bond, waste bond – a bond, having very low investment qualities, a high-risk,  speculative security. In 80-s they were widely used in speculative activity, considering, that great portfolios of waste bonds, despite of high credit risk, yield higher profitability, than conservative portfolios of bonds of high quality.
Rate of exchange - the price of monetary unit of one state, expressed in monetary units of other state at the present time.
Currency risk - risk of losses in connection with the change of the exchange rate of one currency with respect to another.
Warrant - the security, entitling the purchase of a certain kind of the security at the determined price within a given time. It differs from an option for purchase by the longer terms (more than a year) and character of application. For example, it can be issued to enable the owners of preferred shares and bonds to purchase common stock.
Intercompany risk (risk of the enterprise) - risk of the enterprise is a risk of financial losses owing to credits, investments in securities and assets of the concrete enterprise, arising in connection with negative results in its financial and economic activity (inadequacy of management, technical, technological and human resources, absence of demand, inefficient financial management, etc.). The enterprises at the various stages of the life cycle also have  the various risk levels (a just  established enterprise - being at stages of fast or mature growth - the dying enterprise). The level of risks depends as well on the type of behavior and management of the enterprise (aggressive development strategy, the conservative enterprise, having a particular specialization and occupying  limited niches at the market). The risk of the enterprise also includes  a risk of swindle (creation of  false enterprises, bubble joint-stock companies, etc.).
Temporary   cost of money (kinds: the present cost, the future cost) - a financial concept, assuming, that cost of money changes with time, that a pecuniary estimation of the asset, generating incomes / losses, is the function of time. According to this concept the pecuniary estimation of  asset at the end of the period of time is equal to its pecuniary estimation at the beginning of the period plus the increment / lost sum of money, defined by the size of profitability / of unprofitableness of the asset. The essence of the concept is in the well-known expression: “time is money”.
Blue chips - shares of the largest and for a long time  known companies, being at the stage of moderate growth and generating significant sales volumes, and the bankroll, exceeding their need for investments. In this connection they are capable to distribute high profits, involving the investors, having orientation for moderate growth at high dividends. Shares of the highest quality.
Monetary demand - demand in the  form of money, made by the economy and  population for the goods and services. Its volume and structure are defined by the current money supply, velocity of money, volume and structure of commodity aggregation, dynamics of needs, phase of the economic cycle of the economy, macroeconomic policy, the  tools of which (percent, taxes, etc.) influence the sizes and  orientation of demand.

Depositary - the organization which is carrying out the storage,  accounting and securities calculations, percent collecting   and other services, connected with securities.

Certificate of deposit - the document, verifying the floatation of cash assets at the deposit account in the bank. In the practice of the USA the certificate of deposit can be a circulating, financial tool, yielding interest, redeemable at the certain date. Similar small nominal certificates of deposit are widely distributed by banks among the population (for example, a gift certificate for the holiday). Large nominal certificates of deposit (for example, to the sum of more than hundred thousand US dollars) allow the companies to transform the cash, which is not yielding interest, to the percentage financial instruments, close by their liquidity to the cash. Besides, certificates of deposit can be issued on a discount basis or not yielding interest, upon presentation, with an opportunity to endorse the certificate for the new holder. Such form of advancing of means can be used for advancing of means at the conclusion of the contract. Certificates of deposit were issued for the first time in the USA in the beginning of 60-s, in the
Great Britain - at the end of 60-s. They differ from individual deposit fees with the conventionality of conditions and negotiability.
Derivative - a derivative instrument. The addressing contract entitling to purchase or sale of an asset underlying at its basis (commercial, financial) or a pecuniary flow. Forwards, futures, options, swaps and their combinations are related to such contracts. The market price of the derivative depends on the market value of the asset, underlying  at its basis. Derivatives are accepted to be the prevalent financial instruments, used for management of risks, speculation and arbitration.

Diversification - the expansion of the activity, transition to more various ways of financial administration, the objects of the assets investment and sources of resources formation. The aims of diversification are the restriction of risks, creation of the more stabilized financial and economic position, when viability of the company or bank will not depend on one or few factors.
Risks diversification - the strategy directed to the downturn of the level and degree of risks concentration at retention of optimum profitableness and a necessary level of liquidity. The aim of strategy is such combination of the investment objects   or kinds of operations with the high, moderate and low risk levels, which would meet the accepted policy of the company or the financial institution in the field of risks. Risks diversification is obtained by the diversification of assets, kinds of business operations, sources of financing, diversification of suppliers and consumers of production of the company or the financial services, rendered by the bank or other financial institutions. The same effect is obtained by the diversification of terms of investments and the involved resources, conditions, on which financial and economic operations (for example, a combination and linkage of loans and deposits with fixed and unsteady interest rate, etc.) are performed.
Diversified securities portfolio - a portfolio, diversified according to the kinds of securities, their terms, issuers, the level of risks, profitableness and liquidity (with use of diversification  as one of the investment strategy, directed at the achievement of a certain, aggregated risk level, profitableness and liquidity of the portfolio).
Share dividends - one of the analytical coefficients, used in financial management. It is calculated as the ratio of net profit minus taxes, percent obligation and preference share dividends to an average for the period of number of the unredeemed company equities.
Dealer - 1) a person, specializing in a certain kind of operations with financial assets or  operations with a concrete kind of financial assets, 2) a person, acting as the trader in operations with any assets, 3) a person, who is carrying out on a professional basis the operations with financial assets at his own expense (public drawing  of bilateral quotations for the purchase and sale at his own expense, with undertaking  of firm obligations for the  settlement of transactions under the declared quotations, including with a view of maintenance of the market liquidity).
Dealing - realization of transactions with assets (in financial institutions - on the professional basis, at the open market, in bulk).
Discount - 1) excess of a face-value of the security over selling-price; 2) the percent, collected at the accounting (sale) of the one name paper or bill of exchange; 3) the abatement, 4) to discount  (a bill).
Discounting. A definition process of   the real cost of the future monetary flow or series of the future payments.
Dispersion - a measure of dispersion of the parameter variety around of its average value. It is widely used for the measurement of risk and the expression of the risk essence, connected with variability of the income.
Inflation – an advance in prices, causing reduction of money purchasing capacity and being a multiple-factor process as from the reasons of inflation (excessive issue of paper money in the circulation, commodity deficiency, inflationary expectations,  administrative rise in prices, imported inflation, etc.), and from consequences (redistribution of incomes,  inflation tax, overwhelming influence on investments; negative percent, capital flight from the country, depreciation of national currency in relation to the foreign currency, etc.).
Hypothec/mortgage - the debt tool, by means of which the borrower pawns the property to the creditor (usually real estate) with the right of retention  at default. At that the right of use is kept by the borrower of the given property.
Exchequer – a organization department in the corporation, carrying out the financial planning and forecasting activity, current management of assets and liabilities, including formation of financial resources, management of a credit portfolio, an investment portfolio, etc.
Capital risk – a risk of decapitalization in connection with the significant losses on assets of bad quality and necessity of write-offs of losses at the expense of capital.
Clearing – a process of guidelines, the coordination and, in some cases, acknowledgement of payment orders or assignments for securities transfer before the final settlement of calculations. Clearing process includes also the calculation of mutual positions in the group of participants with the purpose to make possible the settlement of their mutual obligations on net-basis.
Commercial papers. 1) according to the American legislation, the notes of hand and transfer notes, checks and certificates of deposit are related to commercial papers. 2) commercial papers - the short-term, circulating debt papers, being the notes of hand, not having security, and issued mostly for the period of  1 - 270 days. They are issued in the form of “to bearer”, usually by the issuers, having good reputation, in the form of constantly renewed programs of issue of commercial papers. For support of issues they often resort to back-up lines (for the covering of non-payments on commercial papers at their issuers default). The form of short-term formation of resources by non-financial corporations or the financial companies, founded by them. Banks can resort to the issue of commercial papers for accumulation of financial resources. They are usually the promissory notes with large face value, figured on off-exchange circulation, often omitting the financial intermediaries, intended for direct distribution among large institutional investors. They appeared in the USA in XIX century, were widespread after the Second world war first in the USA and then in the Europe.
Commercial bank - the financial institution, which is carrying out the minimal set of bank operations - crediting, formation of means in deposits, account management and realization of calculations, cash service. At the same time the commercial bank usually carries out a great number of bank operations, has no pronounced specialization for a concrete kind of bank services, unlike the special banks (the mortgage, savings business, financing of export-import, bank service of the certain categories of natural and legal entities). By virtue of the stated it has an extremely diversified structure of assets and liabilities, it is the largest financial and credit institute in comparison with the other categories, widely being engaged, unlike the specialized bank institutes, in commercial crediting (for example, short-term crediting of the industrial and internal trade turnover).  Commercial banks are, in essence, the “financial supermarkets”, giving an opportunity of carrying out of any financial operations by means of them (currency, securities, insurance, leasing, real estate, etc.) to the extent that it is authorized by the legislation. Besides, the payment system of the country and also the system of cash turnover are based on
commercial banks. These banks usually receive a special kind of the bank license (for performance of commercial bank activity).
Conversion - an exchange of convertibles (for example, convertible preferred stock) for a certain number of equities. 2) the conversion of one financial tool into another. 3) conversion, transformation of assets of one kind into the other assets (for example, during manufacture).
Convertible bond - the bond, which can be converted into other type of securities. For example, in the equity.
Counterpart  risk (risk of the counterpart) – a risk,  that the counterpart under payments becomes insolvent after a payment obligation took place, but before it will be collected from the counterpart.
Corporate finances/finances of the enterprises. System of the relations, covering the formation and use of financial resources of the company, and also their management with the purpose of maintenance of the  liquidity and financial risks necessary level  at keeping of maximum  possible high profitableness of the company (financial management). The basic objects of management in the corporate finances are: 1) the capital and profit of the company, 2) volume and structure of the partnership debt, 3)  portfolio of assets (including financial assets), 4) monetary flows, 5) financial risks (risk of liquidity, percentage risk, credit risk, currency risk), 6) designed financing, 7) special cases of the finances organization (amalgamation and absorption, division of the companies, the finances of transnational corporations, etc.). Management aspect of the corporate finances: the organization of planning, account, control and regulation during formation and use of financial resources of the company.
Credit (in the meaning of loan). Temporal borrowing of money resources or other assets on the basis of recurrence and urgency with the purpose of covering of temporal needs for monetary or other resources.
Credit risk – a risk of the loan non-return, unredeemed promissory note (for example, in the form of the bond, the bill or other debt securities). The credit risk is the risk, estimated before the provision of loan or the investment of money into the promissory note by the investor. The credit risk concerns both the borrower’s insolvency on the basic sum of the debt, and on percent. In clearing-estimated system the credit risk is an opportunity of the failure of the clearing agreement participant to cover completely the estimated obligations in time or later by virtue of insolvency. In this case the other participants not only face a problem of liquidity, but also can bear practical losses.
Limit order (limit application, limit warrant) - the order, given by the client to the broker to buy the securities at the price not higher, than price Y, or on better terms, or to sell at the price, not lower, than price X, or on better terms at the moment, when the order reaches a floor of stock exchange or gets into the system of auction performing   of electronic trading system.
Listing - an establishment of conformity of a security with the certain criteria for the admission to the tender at the stock exchange (or at the other stock market, where there is a procedure of selection, listing of securities). Listing is carried out from the positions of financial stability and the large sizes of the issuer, mass character of the given security, as homogeneous and standard goods, mass character of demand for it.
Interbank interest rate - the interest rate, on which banks lend money resources to each other.
Interbank market (of currency, deposits, credits, securities, etc.) - the market, the participants of which are solely banks, and deals are made between banks.
International Monetary Fund, IMF. It is founded according to Breton Woods Agreement in 1944. The international financial organization, the members of which are more than 180 countries of the world. The declared purposes of IMF: assistance to the development of the international cooperation in monetary and currency spheres, creation of the mechanism of consultations and interactions in this area; assistance to the economic development of the countries - members; assistance to the international currency stability; rendering of support to creation of multilateral system of the payments, serving the international trade, and liquidation of restrictions in currency area; improvement of the condition of the countries-members of IMF balances of payments. Performs the functions of regulation of the international currency system, stabilization (credit) financing of the countries, which are in terms of  structural reorganization of economy, economic and financial crises, functions of supervision of currency, financial and economic stability in the countries - members, their consulting support concerning the achievement of macroeconomic, financial and currency stability, carrying out of structural reforms. The international financial statistics published by IMF is well-known and it is the acknowledged information source. The functions of IMF, which are carried out concerning world economy,  are partly similar to the functions of the central banks, which are performed by them in national economics. As  a rule, ministers of finance or heads of the central banks of the countries-members participate in the board of governors of IMF.
Modified duration – is calculation as the ratio of duration to the correcting factor, calculated as the sum of unit and profitableness to repayment, divided by the number of coupon payments for a year. It is used for determination of relative change of the bonds price per the unit profitableness change.
Unsystematically risk - risk of losses of the assets, connected with the concrete company (success of its marketing programs, work with the personnel, relations with suppliers, etc.). The risk is diversified; it can be decreased due to diversification of the portfolio, replacement of one asset by others, etc.
Netting, offsetting, bilateral clearing - the coordinated offset of mutual positions or obligations by the trading partners or participants of the offset system. Netting reduces a significant amount of individual positions and obligations to their smaller number. There are some forms of netting, which vary depending on legal ways of compulsory execution in case of the faulty attitude to obligations of one of the parties.
Security, mortgage, mortgaging security. Property, which under the contract should be used for repayment of a debt to the creditor in case of inability of the debtor to repay a debt.
Bond index - an index, describing the dynamics of bonds market value.
Bond - the debt security, which is issued for the term of more than 1 year, returning interest on the percentage or discount base with the repayment at the termination of the basic sum circulation term. The central and regional governments, the state departments, the companies and financial institutions (corporate bonds) can function as the issuers of bonds. Bonds can be issued on the security or without security, as the convertible into shares. Possess a seniority for the shares  in payment of percent and the basic sum, they are considered to be  a less risky tool, than shares,  for all that on the average at the share market, for a number of years their profitableness is always lower, than of ordinary and preferred  shares, and liquidity – is higher.  
Bond with the fixed percentage – securities with the fixed percentage. For example, the savings certificate with the fixed percentage.
Equity. The kind of the share, which is characterized by the following: it provides the voting authority at the assembly of shareholders, and also the right to participation in controls of the
joint-stock company; entitles to the dividend of the unfixed size (after payment of the preference shares dividends the right  is given to property at liquidation of the company after satisfaction of requirements of all creditors and holders of preference shares); the rights of reception of the information on the joint-stock company and prior purchase of new issues of shares before their distribution among public are also provided.
Operational risk - risk of failures in the trading, account-clearing or other system, serving the financial market, in connection with technical malfunctions of the software, breaks in supply of electricity, disorders in technology of the information processing, mistakes of the people who are performing technical, technological and information functions, crimes of the personnel, etc.
Option, option contract. The derivative financial tool, being the standard, circulating contract on purchase or sale for the term of financial or other asset, with the right of refusal of the option holder for a certain payment from the performance of the contract.
Basic risk – a risk, that the contractor will lose the wholly sum under the contract. During the realization of calculations this term is usually related to the recoverable transactions in which the time log between final calculations for various parts of the transaction (i.e. there is no supply against payment) takes place. For example, the seller of securities supplies this kind of assets, but does not receive payment; or the buyer of securities carries out the payment, not having received the assets. The fundamental risk, arising at calculations under transactions with currency, refers to as a risk of cross-currency calculations.
Revocable bond - the bond, of which the issuer has the right to withdraw for the repayment before maturing on of repayment of the bonded debt.
Openness, "transparency" (of the financial market, bank or other economic activities) - the major legislative requirement to the economic agents, directed at the protection of clients (depositors, investors, users, etc.), their complete  informing, provision  of equal opportunities for them  for the estimation of the credit and other risks, connected with concrete business, rendering services for them. Transparency of the financial market - the major principle of its functioning, assuming the maximum possible complete awareness of investors at acceptance by them of rational decisions on the investment of means in financial assets, and also their equal rights to access to the information. The transparency of the market is provided with carefully designed systems of information disclosure about the financial assets, about their issuers, about their current condition, prospects and risks which they bear.
Branch risk - the risk, connected with the specificity of separate branches. From positions of this kind of risk all branches can be classified as follows: a) subject to cyclic fluctuations ( branches of constructional materials, manufacture of the equipment, etc.) and b) less subject to cyclic fluctuations (manufacture of  goods for the population and  foodstuffs).Besides, it is possible to classify branches on venture (arising), "dying", stably working, quickly growing young branches, based on the most progressive technology (classification according to the stage of life cycle of the branch). Branch risks are demonstrated in changes of investment quality and course cost of securities and corresponding losses of investors, depending on the  branch belonging to this or that type and correctness of the estimation of this factor by investors.
Passive management of a portfolio, is guided by acceptance of risks of the market as a whole and, hence, of reception of profitableness on the average at the market. As a rule, passive style of management is connected with formation of the portfolio structure, corresponding to the structure of a stock index or differing with the high level of diversification. The making of a plenty of transactions and intensive acceptance of investment decisions are usually not planned.
Pension fund - the fund, created for making of pension payments to the persons, for which it is intended, after their retiring on a pension. The fund is created by regular deductions, made by its founders and the future payees of pension payments. Investments into the fund and its own
investments are usually connected with tax concessions. Pension funds are the largest institutional investors, who are having significant long-term monetary accumulation and carrying out their investment in securities on a professional basis.
Transfer note (draft) - the written order of one party (drawer) to other party (drawer, the payer) to pay to the party, specified in the order (beneficiary), or the bearer  the specified sum or upon presentation of the draft (the bill upon presentation), or at the concrete date (the urgent bill).
Transitional economy – the economy, which experiences transformation - from the model of centrally planned economy into the model of market economy. Usually Russia and other countries of the Commonwealth of Independent States, the country of the East Europe are related to transitional economy.
Political risk – a risk of financial obligations default in connection with political revolutions, acceptance of new political decisions, etc.  circumstances,  influencing directly the economic practice. Such events as acceptance of new taxes, change of priorities in the financial support of branches, introduction of currency restrictions, etc. are also related to this risk.
Portfolio (assets, securities, investments, loans, etc.) - a portfolio of assets in any form is considered as a whole, as an object of management from positions of its risk, profitableness, which it generates, liquidity of the portfolio, quality of the assets in  it. During management the distribution of assets in the portfolio, structure of the involved resources, and necessity of regulation of the portfolio structure is estimated according to the policy, accepted inside the organization, and the created control system of the portfolio, and also depending on the actual market situation and forecasts of its development.
Portfolio risk (of a portfolio of assets of the financial institution or the other legal or natural person) - total risk, which a portfolio of the assets has, belonging to the certain person. In the complex portfolios, consisting of many assets, there is a problem of transition from management of risk, profitableness and liquidity of separate assets to the management in these parameters of the portfolio as a whole. In this connection the profitableness and its fluctuations of the portfolio as a whole are considered, the general risk of the portfolio is estimated, considering, that risks of separately taken assets can be mutually  repaid, the procedures of regulation and control of the portfolio as a whole are organized ( establishment of quantitative limits for departments according to profitableness, risk, liquidity,  quality of assets), liquidity and quality of the portfolio are estimated (but not only separate assets) in coordination with risk and profitableness of the portfolio, special committees or divisions for management of portfolio risk are created, etc. In portfolio risk all kinds of risks, connected with financial assets, are combined.
Enterprise risk - risk of the organization of the new enterprise and, accordingly, the losses, arising at unsuccessful start of economic activities.
Privatization – a process of transfer of the state property into the private property, increase of the share of the latter in the property structure in economy. It is carried out within the limits of liberalization policy, as a measure of improvement of the unprofitable state enterprises, at transition of the countries with centrally planned economy to the market bases of managing.
Preference share - a kind of the share, which is characterized by the following: usually does not give a vote at the assembly of shareholders and the right to participation in bodies of joint-stock company (except for cases, when the rights of the holders of preference shares are infringed); it entitles to the dividend of the size, fixed in advance (before the payment of dividends under equities, after the payment of percent under bonds); it gives the right to property at liquidation of the society after satisfaction of requirements of all creditors and up to satisfaction of holders of quities. Preference shares with participation in the profits. Depending on the results of work extra-dividends can be paid for a year on them, over the fixed size of regular dividends. The transitive form from preference shares to equities, its purpose - to create an additional interest for the investor (a combination of the guaranteed and - over them - additional payments).
Project risk - the risk, connected with preparation and realization of the concrete credited (financed) project. Risk of arising of the circumstances, leading to the reduction of incomes and increase of charges under the project in deviation from the outlined according to the business-plan.
Promissory note is the bill, containing simple  and not stipulated promise of the maker (debtor) to pay a certain  sum to the bill holder (creditor) or its order (i.e. under the order of the creditor the payment can be made by the holder of the bill or to any other third party).
Percentage margin - for example, a difference between the percent, paid under the resources, involved by the bank, and the percent, received from investments of these resources in the loans and other assets.
Interest risk - interest risk - risk of the financial position deterioration of the broker - the dealer, bank or other financial institutions as a result of adverse changes of market interest rates. For example, the interest risk under securities includes the risk of overvalue, arising because of break in urgency of assets and liquidities (at the fixed rates), and also because of asymmetrical overvalue at different kinds of the applied rate (floating or fixed) for the assets of financial institutions, on the one hand, and for obligations, on the other hand. The interest risk at disbalance of assets, obligations and below-line accounts with the fixed and floating interest rate takes place  in case, if: a) assets with the fixed interest rate are covered by obligations with the floating interest rate, and at growth of the latter the financial institutions  suffer losses (reduction of the interest income or even the loss, when the sums of the paid interest are higher, than   the sums of the received interest), b) assets with the floating interest rate are covered by obligations with the fixed interest rate, and at decrease in the interest rate the interest risk is observed - the financial institution will suffer losses. There are also other situations, in which the interest risk is observed.
Clearing house (the organization or subdivision, in which accounts between banks or other financial establishments are made). The clearing house represents structure (centrally located or with the centralized data processing) by means of which the financial establishments agree to exchange payment orders or other financial obligations (for example, securities). Establishments pay off for the purpose of exchange at the certain moment, according to the rules and procedures of the clearing house. Usually each bank pays off under the obligations to the others by paying into the clearing house of a total sum of net debt to other participants.
The registrar (registrar of shares) - keeps record of the total amount of the issued, replaced and destroyed shares, supervising the exact conformity of the issue volume to the quantity of shareholders. The registrar does not keep the individual record of shareholders. The registrar of economic and financial objects, for example, the registrar of the companies, a person, keeping the journal of the anew established, functioning and stopping their activity companies.
Reorganization (restructuring) of the company assets after the announcement of its bankruptcy with the purpose of improvement of its financial condition and mobilization of the sources for repayment of debts (USA), change of structure of the company on the basis of amalgamations, segregations, purchases, etc.
Risk - the uncertainty, resulting in the opportunity of losses or non-receipt of the income of the expected size. It is often considered as a dispersion/standard deviation of the income, received from investments.
Control risk - the risk, meaning, that the internal monitoring system, which is available at the enterprise, in bank, etc., can miss mistakes.
Liquidity risk - risk of inability to cover current financial obligations in connection with the freeze of a significant part of assets in the illiquid form and impossibility to transform them in money resources. The liquidity risk does not mean the insolvency of the party as the participant can cover the promissory note at unconditioned time subsequently. In such situation other participants can suffer, if they plan to use proceeds under these payments for the covering of other obligations or, in expectation of payment, already allow to the clients to use these means. However other participants can find alternative sources of financing for the covering of obligations during expectation of final payment of the participant, who has not fulfilled the obligation.
Risk of nonpayment - inability of the debtor to carry out its obligations concerning the basic sum of debt, interest and other conditions of the debt agreement. The specified kind of risk can take place both concerning loans, and other kinds of promissory notes (debt securities, leasing, etc.). The risk of nonpayment is estimated in the situation. When the loan is already allowed (unlike the credit risk, considered before the grant of loan).
Delivery risk - risk of inability to carry out the obligations on delivery of the financial tool at execution by the seller or the buyer of the concluded transaction. For example, at sale with a short position of security-impossibility of its delivery by the seller.
Risk of business - business risk, in turn, consists of the separate risks, arising at each stage of circular flow of means of the enterprise, for example, a risk of the prices increase for raw material, risk of losses due to the damage of materials, technological risks in manufacture, risks of competition in the system of distribution and trade of finished commodity, etc.
Risk of settlement - risk of calculations, probability of the fact, that infringements in the system of calculations will result in default of calculations under the transaction, though the parties are ready and do all necessary for settlement of relations.
Market of capitals - the market on which redistribution of medium-and long-term capitals (with a term of over 1 year) is carried out. Medium-and long-term securities (a flow of monetary resources from the investor to the issuer) and medium-and long-term credits (a flow of monetary resources from the creditor to the borrower) function as the tools of redistribution. Commercial banks, the securities companies (investment banks) - financial institutions of development, etc. function as the professional financial intermediaries, who are carrying out redistribution of free monetary resources.
Equity market - the market, the goods of which are securities. The basic function of the market is a redistribution of monetary resources for the purpose of investments (on the basis of purchase of securities at their issue at the primary market and their trade at the secondary market). Monetary resources are redistributed from investors to issuers of securities by means of financial intermediaries (the broker-dealer companies, universal commercial banks) on the basis of the market infrastructure (stock exchanges as the trading sights, depository, and account-clearing, registrar and information infrastructure). It is one of the most volumetric and refined markets.
Market economy - the economy, based on the private property, competition, decentralized decision-making concerning the distribution and use of the society resources,   in which the connection of means of production and labor force is made by the market (the market of means of production, the market of capital and the market of labor force), through the purchase-sale of
goods (including the goods - labor force) between freely and independently operating buyers and suppliers of the goods. At the same time, in the real market economy there are always restrictions for freedom of action of market forces (state regulation, state ownership, nonmarket, administrative and centralized distribution and use of the part of the society resources). Thus, real economies   are always between two poles: the free market and command system of managing, to a various degree coming nearer to one of them (the German and Swedish models, “Reaganomics”, “Thatcherism”, the Asian market economies with a special role of the state, etc.).
At best (the market application, the market order) - the order, given by the client to the broker to make the transaction with securities or other financial assets at the best price at the moment, when the order will reach the floor of stock exchange or  get into the system of conducting auction of electronic trading system. Accordingly, the order to buy a security or other financial asset at the lowest price or to sell at the highest of  prices, which are available at the moment of time, when the order is entered at the floor of the stock exchange or into the system of conducting auction of electronic trading system.
Market risk - market risk - risk of occurrence of financial institution negative profit (losses) owing to the change of market cost of the trading portfolio, being the body of securities and other financial tools, having the market cost and bought by the financial institution with the purpose of the further resale, including tools of “repo” type.
Savings bond - one of the securities, which are issued by the Ministries of Finance (the Ministry of Finance of the USA, Exchequer of the Great Britain, etc.). It is intended for the population.
Savings certificate - one of thrift accounts, anticipatory withdrawal of means only with the payment of penalty, usually has a short-term character (90 days), it is issued with small face value for distribution among natural persons (USA), 2). a state security, which is issued for natural persons.
Certificate - the physical document, confirming the performed economic operation, presence of property and other rights, outstanding financial obligations, the material carrier of the security, means of payment, etc.
Systematic risk - risk of losses of assets due to circumstances, not dependent on the concrete company, being general market one (in connection with war, depression, high inflation, mass bankruptcies, etc.). The risk is not diversified; all the assets in the portfolio of the investor are under its influence.
System risk - risk of losses in connection with that fact, those non-payments of one or several largest borrowers of the banks, which are in unsatisfactory financial condition, will cause effect of "domino" and lead to occurrence of the chain of non-payments which are threatening all bank system. In the field of calculations - the opportunity of occurrence of a situation, when inability of one of the clearing agreement participants to carry out calculations within it or as a whole at the financial market will result in  impossibility of other participants of this clearing group  to carry out  properly their obligations for clients or other banks. Volumes of mutual calculation operations between participants of the clearing agreement influence directly the level of the system risk, connected with this concrete agreement. When the clearing agreement supports high volumes of payments and the turnover of funds is also high, the system risk of this agreement also is very high. Hence, the high system risk is usually connected with private systems, serving large payments and securities transfers. The failure of such operations can cause the significant problems, connected with liquidity and solvency and, as a result, to result in the threat of stability of the financial markets.
Joint fund - created by the public investment company. The fund shareholder can sell the pays only to the fund, and the fund is obliged to buy them. The specified pays do not circulate at the
organized markets (stock exchanges). The size of the fund can increase by the additional issue of pays (therefore " public "). The volume of issued pays is not closed (hence – public fund). Bid-and-asked quotations of the joint fund pays for carrying out of current operations with its investors are daily made. Quotations of the joint fund pays are defined by the size of net value of its assets, divided by the number of shares (in turn, net value of assets of the joint fund, invested   in securities and other liquid values, is the function from their market cost at the open market). Economically and organizationally it is similar with unit-trusts (Great Britain).
Profitability rate - the ratio of increment of value of an asset for the period to the cost of an asset at the beginning of the period, profitableness.
Country risk - the risk of losses, in connection with investments into this or that country, by virtue of the unstable political situation, economic crisis, restrictive policy concerning the foreign investments, excessive burden of the external public debt and the limited access to the foreign markets of capitals.
Insurance - a kind of the financial activity, consisting of association of money resources of various persons to cover losses at their risk. The  insurance company acts as the financial intermediary between the persons, participating in the insurance scheme, the holder of their general fund, the appraiser of risks and the operator, who is carrying out payments at the approach of risk.
Insurance company - a financial intermediary between the persons, participating in the insurance scheme, the seller of insurance services, the holder of the general insurance fund, the appraiser of insurance risks and the operator, who is carrying out payments from insurance fund at the approach of risk (insurance case). The basic function of the insurance company is the distribution of individual risks to many participants of the insurance fund. In this quality the insurance company operates as a institutional investor, which accumulates small private savings (investments into the insurance policies are often considered as the form of savings), integrates them and on this basis carries out the wholesale investments (into the large share holdings, the real estate, etc.).
Tender offer - 1) the public offer for the purchase of control participation in corporation by means of purchase of its shares at the established date for a determined price (usually higher, than the price, established at the market, to involve as much sellers as possible), 2) the offer of the repayment by the joint-stock company of its own shares, for example, with the purpose of reduction of their quantity at the market.
Technical  analysis - methodology of the analysis and forecasting activity of the price conjuncture of the financial market, based on the assumption, that inside day  dynamics of rates of securities and other financial assets in itself consider all possible information, influencing rates, at that not demanding  of fundamental, covering the longer periods, time of the analysis of macro- and  microeconomic, social, political and other factors, concerning the retrospective review, the present and the future of issuers, branches and regions of  economy as a whole (condition, potential, tendencies of development of economic agents from the positions of their influence on rates of securities). The technical analysis is based on studying and interpretation of trends in the movement of market prices for quick assets.  
Commodity exchange. The organized market for trade of standard real goods, and also standard financial instruments, which basis are the real goods. It is created by the professional participants of the goods market for mutual wholesale operations, speculative, arbitration and hedging activity. Attributes of the classical commodity exchange: a) presence of the centralized trading platform and  time-limit, presence of procedure of goods selection, allowable  for the auction, and the exchange inspection, supervising their quality (conventionality requirements, mass character, lot control, the certain degree of quality, certification, plurality of demand, etc.); b) existence of selection procedure of the best market operators as the members of the stock exchange; c) presence of exchange warehouses and warehousing  of consignments, serving as  security of real supplies for closing of contracts; d) the open and public auction, the auction
mechanism of trade, uniform standards and time-limit  of commercial procedures; e) centralization of registration of stock-exchange deals, presence of system of distribution of the exchange information; f) centralization of clearing and calculations under transactions; g) supervision of the stock exchange members, etc. In XX century commodity exchanges began increasingly more to turn from the markets, providing real supply of goods, to the markets of derivative financial tools, forming the terminal prices for the real goods, allowing to carry out the short-term gamble, arbitration and management of the various financial risks, which the company   - manufacturers of the exchange goods - and other participants of the goods market, had.
Tranche - a part of the bonded loan or back-up line, possessing the unity of time and other parameters. The bonded loan can be placed and repaid by tranches, in parts, with time breaks between tranches. By analogy the credit can be issued by tranches, the provision of each subsequent tranche can be caused by performance of any conditions, made to the borrower (for example, credits of the International currency reserves).
Trust - management of property on the basis of the trust fund or agency. The transfer by the proprietor of property rights for the assets to the trust manager (the authorized representative), so that the latter operated them in the interests of the profit getter on the trust (beneficiary), 2) trust (for example, industrial trust ). The enterprises or group of the associated enterprises, possessing the monopoly for manufacture or distribution of a certain kind of production.
Management of assets – the planning, account,  control and regulation of volume, structure, terms and quality of assets with the purpose of increase of their profitableness at the necessary level of liquidity and risks (financial and others), which they bear. It can be considered as one of the professional activities at the financial market (management of assets of the institutional investors).
Management company- the company, established with the purpose of attraction of the financial resources for formation of a property complex (fund of assets) and management of its assets with the purpose of deriving profit for investors or realization of any other purposes and  profits, connected with the property complex.
Financial information - the information of the last, current and predicted condition of the financial objects (pecuniary incomes and charges, assets and  obligations, expressed in the monetary form), and also of the factors, influencing their condition.
Commercial credit company - the company, which specializes on granting of consumer loans or credits to the small enterprises. In the international practice there is a distribution of concept of the commercial credit company as credit institution, which performs separate bank operations, but, however, is not the bank, as it doesn’t  meet the demands, made to the banks (for sufficiency of the capital,  list of operations,  level of regulation, etc.).
Financial tool. The financial products, created for the redistribution of financial resources  - deposits, loans, securities, insurance and pension policies, etc, are related to the financial tools. The use of financial tools is the primary activity of financial institutions, which are also called  as financial intermediaries.
Financial management (forecasting, planning,  account, regulation and  control of a financial condition of the enterprise, financial institution with the purpose of maximization of profitableness and maintenance of an acceptable level of risks and liquidity). The problems of management of the  company capital, the attracted resources, their distribution into financial assets, budgeting and  control over charges, formation and distribution of profit, optimization of tax and other obligatory payments, budgeting of needs in the financial sources for investments and their covering, management of financial risks, profitableness and liquidity of the company, etc., are related to the field of financial management.
Financial risk - the category of financial risk includes such kinds of risks, as market, interest, credit, currency risks, risks on off-balance clauses, option risks, etc. Financial risk – is a risk of decrease in profitableness, the  direct financial losses or  loss of profit, arising at financial operations in connection with a high degree of uncertainty of their results, with influence on them of sets of random factors,  possible inefficiency of manufacture, distributive systems and/or financial management.
Control risk - the risk, meaning, that the internal monitoring system, which is available at the enterprise, in bank, etc., can miss mistakes.
Liquidity risk - risk of inability to cover current financial obligations in connection with the freeze of a significant part of assets in the illiquid form and impossibility to transform them in money resources. The liquidity risk does not mean the insolvency of the party as the participant can cover the promissory note at unconditioned time subsequently. In such situation other participants can suffer, if they plan to use proceeds under these payments for the covering of other obligations or, in expectation of payment, already allow to the clients to use these means. However other participants can find alternative sources of financing for the covering of obligations during expectation of final payment of the participant, who has not fulfilled the obligation.
Risk of nonpayment - inability of the debtor to carry out its obligations concerning the basic sum of debt, interest and other conditions of the debt agreement. The specified kind of risk can take place both concerning loans, and other kinds of promissory notes (debt securities, leasing, etc.). The risk of nonpayment is estimated in the situation. When the loan is already allowed (unlike the credit risk, considered before the grant of loan).
Delivery risk - risk of inability to carry out the obligations on delivery of the financial tool at execution by the seller or the buyer of the concluded transaction. For example, at sale with a short position of security-impossibility of its delivery by the seller.
Risk of business - business risk, in turn, consists of the separate risks, arising at each stage of circular flow of means of the enterprise, for example, a risk of the prices increase for raw material, risk of losses due to the damage of materials, technological risks in manufacture, risks of competition in the system of distribution and trade of finished commodity, etc.
Risk of settlement - risk of calculations, probability of the fact, that infringements in the system of calculations will result in default of calculations under the transaction, though the parties are ready and do all necessary for settlement of relations.
Market of capitals - the market on which redistribution of medium-and long-term capitals (with a term of over 1 year) is carried out. Medium-and long-term securities (a flow of monetary resources from the investor to the issuer) and medium-and long-term credits (a flow of monetary resources from the creditor to the borrower) function as the tools of redistribution. Commercial banks, the securities companies (investment banks) - financial institutions of development, etc. function as the professional financial intermediaries, who are carrying out redistribution of free monetary resources.
Equity market - the market, the goods of which are securities. The basic function of the market is a redistribution of monetary resources for the purpose of investments (on the basis of purchase of securities at their issue at the primary market and their trade at the secondary market). Monetary resources are redistributed from investors to issuers of securities by means of financial intermediaries (the broker-dealer companies, universal commercial banks) on the basis of the market infrastructure (stock exchanges as the trading sights, depository, and account-clearing, registrar and information infrastructure). It is one of the most volumetric and refined markets.
Market economy - the economy, based on the private property, competition, decentralized decision-making concerning the distribution and use of the society resources,   in which the connection of means of production and labor force is made by the market (the market of means of production, the market of capital and the market of labor force), through the purchase-sale of
goods (including the goods - labor force) between freely and independently operating buyers and suppliers of the goods. At the same time, in the real market economy there are always restrictions for freedom of action of market forces (state regulation, state ownership, nonmarket, administrative and centralized distribution and use of the part of the society resources). Thus, real economies   are always between two poles: the free market and command system of managing, to a various degree coming nearer to one of them (the German and Swedish models, “Reaganomics”, “Thatcherism”, the Asian market economies with a special role of the state, etc.).
At best (the market application, the market order) - the order, given by the client to the broker to make the transaction with securities or other financial assets at the best price at the moment, when the order will reach the floor of stock exchange or  get into the system of conducting  auction of electronic trading system. Accordingly, the order to buy a security or other financial asset at the lowest price or to sell at the highest of  prices, which are available at the moment of time, when the order is entered at the floor of the stock exchange or into the system of conducting auction of electronic trading system.
Market risk - market risk - risk of occurrence of financial institution negative profit (losses) owing to the change of market cost of the trading portfolio, being the body of securities and other financial tools, having the market cost and bought by the financial institution with the purpose of the further resale, including tools of “repo” type.
Savings bond - one of the securities, which are issued by the Ministries of Finance (the Ministry of Finance of the USA, Exchequer of the Great Britain, etc.). It is intended for the population.
Savings certificate - one of thrift accounts, anticipatory withdrawal of means only with the payment of penalty, usually has a short-term character (90 days), it is issued with small face value for distribution among natural persons (USA), 2). a state security, which is issued for natural persons.
Certificate - the physical document, confirming the performed economic operation, presence of property and other rights, outstanding financial obligations, the material carrier of the security, means of payment, etc.
Systematic risk - risk of losses of assets due to circumstances, not dependent on the concrete company, being general market one (in connection with war, depression, high inflation, mass bankruptcies, etc.). The risk is not diversified; all the assets in the portfolio of the investor are under its influence.
System risk - risk of losses in connection with that fact, those non-payments of one or several largest borrowers of the banks, which are in unsatisfactory financial condition, will cause effect of "domino" and lead to occurrence of the chain of non-payments which are threatening all bank system. In the field of calculations - the opportunity of occurrence of a situation, when inability of one of the clearing agreement participants to carry out calculations within it or as a whole at the financial market will result in  impossibility of other participants of this clearing group  to carry out  properly their obligations for clients or other banks. Volumes of mutual calculation operations between participants of the clearing agreement influence directly the level of the system risk, connected with this concrete agreement. When the clearing agreement supports high volumes of payments and the turnover of funds is also high, the system risk of this agreement also is very high. Hence, the high system risk is usually connected with private systems, serving large payments and securities transfers. The failure of such operations can cause the significant problems, connected with liquidity and solvency and, as a result, to result in the threat of stability of the financial markets.
Joint fund - created by the public investment company. The fund shareholder can sell the pays only to the fund, and the fund is obliged to buy them. The specified pays do not circulate at the
organized markets (stock exchanges). The size of the fund can increase by the additional issue of pays (therefore " public "). The volume of issued pays is not closed (hence – public fund). Bid-and-asked quotations of the joint fund pays for carrying out of current operations with its investors are daily made. Quotations of the joint fund pays are defined by the size of net value of its assets, divided by the number of shares (in turn, net value of assets of the joint fund, invested   in securities and other liquid values, is the function from their market cost at the open market). Economically and organizationally it is similar with unit-trusts (Great Britain).
Profitability rate - the ratio of increment of value of an asset for the period to the cost of an asset at the beginning of the period, profitableness.
Country risk - the risk of losses, in connection with investments into this or that country, by virtue of the unstable political situation, economic crisis, restrictive policy concerning the foreign investments, excessive burden of the external public debt and the limited access to the foreign markets of capitals.
Insurance - a kind of the financial activity, consisting of association of money resources of various persons to cover losses at their risk. The  insurance company acts as the financial intermediary between the persons, participating in the insurance scheme, the holder of their general fund, the appraiser of risks and the operator, who is carrying out payments at the approach of risk.
Insurance company - a financial intermediary between the persons, participating in the insurance scheme, the seller of insurance services, the holder of the general insurance fund, the appraiser of insurance risks and the operator, who is carrying out payments from insurance fund at the approach of risk (insurance case). The basic function of the insurance company is the distribution of individual risks to many participants of the insurance fund. In this quality the insurance company operates as a institutional investor, which accumulates small private savings (investments into the insurance policies are often considered as the form of savings), integrates them and on this basis carries out the wholesale investments (into the large share holdings, the real estate, etc.).
Tender offer - 1) the public offer for the purchase of control participation in corporation by means of purchase of its shares at the established date for a determined price (usually higher, than the price, established at the market, to involve as much sellers as possible), 2) the offer of the repayment by the joint-stock company of its own shares, for example, with the purpose of reduction of their quantity at the market.
Technical  analysis - methodology of the analysis and forecasting activity of the price conjuncture of the financial market, based on the assumption, that inside day  dynamics of rates of securities and other financial assets in itself consider all possible information, influencing rates, at that not demanding  of fundamental, covering the longer periods, time of the analysis of macro- and  microeconomic, social, political and other factors, concerning the retrospective review, the present and the future of issuers, branches and regions of  economy as a whole (condition, potential, tendencies of development of economic agents from the positions of their influence on rates of securities). The technical analysis is based on studying and interpretation of trends in the movement of market prices for quick assets.  
Commodity exchange. The organized market for trade of standard real goods, and also standard financial instruments, which basis are the real goods. It is created by the professional participants of the goods market for mutual wholesale operations, speculative, arbitration and hedging activity. Attributes of the classical commodity exchange: a) presence of the centralized trading platform and  time-limit, presence of procedure of goods selection, allowable  for the auction, and the exchange inspection, supervising their quality (conventionality requirements, mass character, lot control, the certain degree of quality, certification, plurality of demand, etc.); b) existence of selection procedure of the best market operators as the members of the stock exchange; c) presence of exchange warehouses and warehousing  of consignments, serving as  security of real supplies for closing of contracts; d) the open and public auction, the auction
mechanism of trade, uniform standards and time-limit  of commercial procedures; e) centralization of registration of stock-exchange deals, presence of system of distribution of the exchange information; f) centralization of clearing and calculations under transactions; g) supervision of the stock exchange members, etc. In XX century commodity exchanges began increasingly more to turn from the markets, providing real supply of goods, to the markets of derivative financial tools, forming the terminal prices for the real goods, allowing to carry out the short-term gamble, arbitration and management of the various financial risks, which the company   - manufacturers of the exchange goods - and other participants of the goods market, had.
Tranche - a part of the bonded loan or back-up line, possessing the unity of time and other parameters. The bonded loan can be placed and repaid by tranches, in parts, with time breaks between tranches. By analogy the credit can be issued by tranches, the provision of each subsequent tranche can be caused by performance of any conditions, made to the borrower (for example, credits of the International currency reserves).
Trust - management of property on the basis of the trust fund or agency. The transfer by the proprietor of property rights for the assets to the trust manager (the authorized representative), so that the latter operated them in the interests of the profit getter on the trust (beneficiary), 2) trust (for example, industrial trust ). The enterprises or group of the associated enterprises, possessing the monopoly for manufacture or distribution of a certain kind of production. 
Management of assets – the planning, account,  control and regulation of volume, structure, terms and quality of assets with the purpose of increase of their profitableness at the necessary level of liquidity and risks (financial and others), which they bear. It can be considered as one of the professional activities at the financial market (management of assets of the institutional investors).
Management company- the company, established with the purpose of attraction of the financial resources for formation of a property complex (fund of assets) and management of its assets with the purpose of deriving profit for investors or realization of any other purposes and  profits, connected with the property complex.
Financial information - the information of the last, current and predicted condition of the financial objects (pecuniary incomes and charges, assets and  obligations, expressed in the monetary form), and also of the factors, influencing their condition.
Commercial credit company - the company, which specializes on granting of consumer loans or credits to the small enterprises. In the international practice there is a distribution of concept of the commercial credit company as credit institution, which performs separate bank operations, but, however, is not the bank, as it doesn’t  meet the demands, made to the banks (for sufficiency of the capital,  list of operations,  level of regulation, etc.).
Financial tool. The financial products, created for the redistribution of financial resources  - deposits, loans, securities, insurance and pension policies, etc, are related to the financial tools. The use of financial tools is the primary activity of financial institutions, which are also called  as financial intermediaries.
Financial management (forecasting, planning,  account, regulation and  control of a financial condition of the enterprise, financial institution with the purpose of maximization of profitableness and maintenance of an acceptable level of risks and liquidity). The problems of management of the  company capital, the attracted resources, their distribution into financial assets, budgeting and  control over charges, formation and distribution of profit, optimization of tax and other obligatory payments, budgeting of needs in the financial sources for investments for investments and their covering, management of financial risks, profitableness and liquidity of the company, etc., are related to the field of financial management.
Finances – the system of the relations, covering the movement of pecuniary gains and charges of the economic subject (a state, natural or legal person), its assets and  obligations, expressed in the pecuniary form.
Stock exchange - the organized market for trade of standard financial tools, created by the professional participants of  the  equity market for the mutual wholesale operations. The stock exchange is the best market, established for the best securities by the best (the largest, enjoying confidence and financially steady) intermediaries, working in the industry of securities. Attributes of a classical stock exchange: presence of the centralized trading platform; existence of listing (see listing) and procedure of selection of the stock exchange members; the auction mechanism of trade, presence of uniform standards and  time rules of trading procedures; centralization of registration of transactions, presence of system of the  stock exchange information distribution ; centralization of clearing and calculations under transactions; the establishment of official exchange quotations; supervision of members of the stock exchange (from positions of their financial stability, safe business conducting and observance of ethics of the share market). The largest stock exchanges of the world: New York, Tokyo, London, Frankfurt Stock Exchanges.
Share index (index of shares) - an index, describing dynamics of the shares market cost.
Forward contract (forward agreement) of purchase-sale of the security or other asset with the  time of execution for the future date under the price, fixed in advance. Fixed value date should be established in the period, exceeding 2 days since the moment of the contract conclusion. Under some forward transactions the fixed value date can come in 1 year and more, but in the majority of cases the calculations are made within a month. Forward contracts, unlike the futures, are not standardized and included in the off-exchange turnover. They are considered in the off-balance clauses of the bank.
Financial risk - the category of financial risk includes such kinds of risks, as market, interest, credit, currency risks, risks on off-balance clauses, option risks, etc. Financial risk – is a risk of decrease in profitableness, the  direct financial losses or  loss of profit, arising at financial operations in connection with a high degree of uncertainty of their results, with influence on them of sets of random factors,  possible inefficiency of manufacture, distributive systems and/or financial management. Finances – the system of the relations, covering the movement of pecuniary gains and charges of the economic subject (a state, natural or legal person), its assets and  obligations, expressed in the pecuniary form.
Stock exchange - the organized market for trade of standard financial tools, created by the professional participants of  the  equity market for the mutual wholesale operations. The stock exchange is the best market, established for the best securities by the best (the largest, enjoying confidence and financially steady) intermediaries, working in the industry of securities. Attributes of a classical stock exchange: presence of the centralized trading platform; existence of listing (see listing) and procedure of selection of the stock exchange members; the auction mechanism of trade, presence of uniform standards and  time rules of trading procedures; centralization of registration of transactions, presence of system of the  stock exchange information distribution ; centralization of clearing and calculations under transactions; the establishment of official exchange quotations; supervision of members of the stock exchange (from positions of their financial stability, safe business conducting and observance of ethics of the share market). The largest stock exchanges of the world: New York, Tokyo, London, Frankfurt Stock Exchanges.
Share index (index of shares) - an index, describing dynamics of the shares market cost.
Forward contract (forward agreement) of purchase-sale of the security or other asset with the  time of execution for the future date under the price, fixed in advance. Fixed value date should be established in the period, exceeding 2 days since the moment of the contract conclusion. Under some forward transactions the fixed value date can come in 1 year and more, but in the majority of cases the calculations are made within a month. Forward contracts, unlike the futures, are not standardized and included in the off-exchange turnover. They are considered in the off-balance clauses of the bank.
Fundamental analysis – the methodology of the analysis and forecasting of  price conjuncture of the financial market, based on the assumption, that dynamics of rates of securities and other financial assets are formed on the basis of long-term and  constant influence of macro-and  microeconomic, social, political and other factors, concerning the retrospective review, the present and the future of issuers, branches and regions, economy as a whole (the condition, potential, tendencies of development of economic agents from positions of their influence on rates of securities). Accordingly, from the point of view of the fundamental analysis the methods of forecasting, based on the extrapolation of intraday  movements and trends in movement of the prices for financial assets ( technical analysis), are insufficient.
Futures Contract, futures- a standard contract of purchase-sale of the security,  foreign currency or other assets with the  time of execution for the future date under the price, fixed in advance, capable to circulate (to be bought and sold) at a stock exchange. The contract is standardized as the exchange object (by quantity and quality of the basic asset, underlying the futures contract, places of storage of the basic asset,  periods of delivery). The feature of the futures contract is the fact, that instead of concrete date of its execution the period of delivery is defined (for example, a month) inside of which the party under the futures, obliged to deliver the goods, can choose a concrete delivery date of the goods.
Herstatt risk - the time risk, arising during the period, when the payment with one currency has already been made, but its reception with the other currency because of a difference in time zones has not occurred yet.
Holding company - a body of the associated companies, based on the vertical holdings of the ultimate company in  the capitals of  dependent (associated, affiliated)  companies. Within the limits of holding the ultimate company holds the subordinate business under the control or in subjection.
Closing  price (for  a concrete financial asset) - the price, at which the last transaction with the financial asset during the official trading session at the stock exchange or the off-exchange  organized market is made.
Opening  price (for  a concrete financial asset) - the price, at which the first transaction with the financial asset during the official trading session at the stock exchange or the off-exchange  organized market is made.
Securities - the documents, which are the certificates of  participation in the corporate property (shares) or of the promissory note (for example, bonds). As a rule, they  possess negotiability and are the goods at one of the most complex, volumetric and refined markets - equity market.
Central depositary of  securities - the structure, providing the centralized storage of securities, which also allows to perform operations with them by the method of entries (non-cash transaction). Paper certificates can be immobilized by  depositary, or securities can be dematerialized (in other words they can exist only in the form of electronic records). In addition to the safe storage the central depositary of  securities can perform the  functions of comparison and verification of transactions, clearing and calculations.
Cheque - the monetary claim of the specified form for the bank as for the payer, to make payment at the rate of a certain sum of money to the person, specified in the cheque. According to the USA and the Great Britain  legislation the cheque is considered as the transfer note traced for the bank (as for a drawee, the payer) and paid by request.
Issue - process of   documentary preparation creation and the state registration, and also distribution of the new mass, serial and standard financial product among the first owners.
Issuer, drawer, check issuer - a person, obliged under the security or other financial tool, for example, the corporation or  government, issuing  and selling the securities, or the bank, which opens (issues) the letter of credit. Sometimes  the financial