Banking

Bank is a financial institution, which produces various kinds of operations with money and shares. Also, banks provide financial services to government, legal entities and private person. Bank is a legal entity of any form of property which:

- Created for profit,

- Has the right to conduct banking operations,

- Has the exclusive right to attract the funds of legal entities and private persons for its subsequent placement by bank’s name, and also for opening and maintaining bank accounts of legal entities and private persons,

- Works on the basis of special license by state bodies (for example Bank of Russia)

- Has no right to carry out industrial, commercial, insurance activities.

There are several types of banks:

National banks, which carry out state regulation of banking sphere and creation of money.

commercial banks, which carry out banking business;

universal banks, which carry out all the major types of banking operations;

investment banks which specialize in investments, mostly in shares;

savings banks, which specialize in raising public funds;

Sometimes the experts distinguish more two types:

"Retail bank" which works with the private persons.

"Captive bank" ("pocket bank") - a subsidiary bank of a large industrial or bank structure, the main purpose of which is to serve the operations of the parent company.

Business and the Environment

We live in a consumer society; We consider it important to buy products and services. Companies need to be aware of the impact of this on the environment, the natural world around us.

In a market where the enterprise’s work is measured by indicators of profitability and efficiency, free of charge of natural resources often generates a thriftless relation to it. Nowadays almost no payments for natural resources, except for the fee to take water for industrial purposes.

There are some natural resources which used by enterprises and organizations free of charge. There are include agricultural territories, coal, environment as a location for industrial waste, etc.

Fee for resources intended to regulate relationships between the state and any company on a specific natural factor. The purpose of its introduction is to create economic conditions for the functioning of individual enterprises and industries, which exploit nature and encourage the rational use of natural resources.

Nowadays, management of industrial companies don’t think about the fact that its activities are harm to the environment. The atmosphere becomes soiled, deforestation, pollution of water resources. In a pursuit of profit, people don’t notice that they destroy the world around them. Perhaps, the fee for use and damage to natural resources will set thinking the management of the companies about how many resources they consume, and how little give in return.

The Stock Market

A company can rise money on the stock market in two different ways. It can issue shares or units of its capital, to institutional investors or the general public. Different types of shares or equities are available, but the most common are known as ordinary or common shares. When an investor buys a share, using the services of a specialist company- broker, he or she becomes a shareholder and owns a part of company. Shareholders can make money by receiving dividends, paid as a proportion of a company’s annual profits, and when the value of their shares increases

The stock market - a component of the financial market, in which securities turns. In other words it is a public entity for the trading of company shares at an agreed price; these are shares listed on a stock exchange as well as those only traded privately. The classification of the nature of the stocks markets: 1.  Primary market - a market in which happen the placement of new securities. 2.  Secondary market - the place of main purchase and sale of previously issued asset. 3.  The third covers - the market which covers trade of publicly listed securities outside itself. 4.  The fourth market – it’s electronic trading system of large blocks of securities directly between institutional investors. Historically, there are three models of stock market, depending of the bank or nonbank financial intermediaries’s nature: 1. Non-bank model (U.S.) - non-bank companies represents itself as intermediaries 2. The banking model (Germany) – banks represents itself as intermediaries. 3. A mixed model (Japan) - intermediaries are banks and nonbank companies.

Market participants include individual retail investors, institutional investors such as banks, insurance companies, and also publicly traded corporations trading in their own shares.

The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional financial capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange affords the investors gives them the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate