What is finance ?

Finance - this term refers to the totality of all material resources ( in cash- a modern interpretation!), which are owned by a subject of the economy: an individual, organization, business or state.

finance and money are closely related concepts. If there were no money, there would be no concept of finance. So, the term "finance" means "to supply with money." The word "finance" is often used in everyday life as a synonym for the word "money".

Finance- a general economic term, meaning both 1) money, financial resources considered in their creation and movement, distribution and redistribution, use, and 2) economic relations due to mutual settlements between economic entities, movement Money, circulation of money, use of money. (Raizberg B. A., Lozovsky L. Sh., Starodubtseva E. B. Modern economic dictionary. 5th ed., revised. and additional - M.: INFRA-M.2007. - 495 s)

Finance is an economic category that reflects the economic relations of cash funds. "Big Economic Dictionary" N.N. Azriliyan (Publisher: Institute of New Economics, OMEGA-L GROUP COMP ANI, Int-t new, eq., Institute. new, ek., Institute of new e K., 2004) -

Finance(from lat. finance- cash, income) - a set of economic relations that arise in the process of formation, distribution and use of centralized and decentralized funds of funds. Usually we are talking about trust funds of the state or business entities (enterprises). The most important concept in finance is budget.

There is also an economic science of the same name - finance.

Finance as a science

scientific discipline finance studies money and socio-economic relations associated with the formation, distribution and use of material resources. Finance is an applied economic discipline.

Traditionally, finance is divided into public and private. The first group includes: public finance and municipal finance (local finance). In the second group, there are:

personal finance and family finance;

small business finance, corporate finance (enterprise finance, business finance), bank finance (banking), non-profit organization finance.

For public finances, expenses are primary, as well-defined tasks and functions of public education are financed. For private finance, income is primary, all activities are aimed at generating income, which is subsequently used at the discretion of the person.

The general skill (and perhaps even the art) of managing finances is studied by science financial management. Bank financial management is studied within the framework of science banking. Financial markets studies science financial economics. financial statistics is studied within the framework of a small eponymous section of statistics. Applied mathematical science studies methods of processing financial information financial mathematics. Control over financial flows is studied within the discipline financial control.

THE SUBJECT OF THE THEORY OF FINANCE

Theory of Finance(finance theory) in a broad sense is the science of how people manage the spending and receipt of limited monetary resources (i.e. make financial decisions) over a period of time.

Financial Solutions(Financialsolutions) are characterized by the fact that the costs and receipts of monetary resources: 1) are separated in time and 2) as a rule, cannot be accurately predicted either by those who make decisions or by anyone else.

Financial decisions are implemented with the help of the financial system.

Financial system(financialsystem) is a set of markets and other institutions used for the conclusion of financial transactions, the exchange of assets and risks.

This system includes:

markets for money, stocks, bonds and other financial instruments;

financial intermediaries (such as banks and insurance companies), firms offering financial services (such as financial advisory companies);

bodies regulating the activities of all financial institutions.

financial intermediaries refers to firms whose main role is to provide financial services and sell financial products. These include banks, investment and insurance companies. Among them financial services includes opening checking accounts, issuing commercial loans, mortgages, providing access to a wide range of insurance contracts and participating in mutual funds.

The modern financial system is global in nature. Financial markets and intermediaries are interconnected through a comprehensive international telecommunications network through which payment transfers and trade securities produced almost around the clock. Thus, if a large corporation located, say, in Germany, decides to finance a new project, then it considers any investment opportunities, including, for example, issuing and selling shares on the London or New York Stock Exchanges or obtaining a loan in any Japanese pension fund. Moreover, in the latter case, the loan can be presented both in German marks, and in Japanese yen or in US dollars.

Briefly, it can be said that finance science studies the movement of cash flows in the economy and the formation of cash funds from various economic entities. Depending on their types, there are:

macrofinance, i.e. cash flows of the state, which in turn are divided into blocks: balance of payments, budget balance, bank balance;

microfinance, i.e. cash flows of enterprises (corporate finance), non-profit organizations (public finance), banks (bank management).

In widesense to theoryfinance include:

The theory of money monetary policy, the doctrine of central banks (according to the international classifier JEL (Journal Economic Literature) - section in group E - macroeconomics and monetary policy;

The theory of taxes and budget (according to JEL, these are sections in the H group - economics of the public sector, publiceconomics),

Investment theory, portfolio theory, corporate finance theory (according to JEL, these are sections of group G - financial economics)

Banking, financial institutions, pension funds, financial markets, financial accounting (financialaccounting) (according to JEL - group M - business administration)

International finance (according to JEL - a section in group A international economics).

THE SUBJECT OF MODERN THEORY OF FINANCE

If until the 19th century the theory of finance developed as a theory public finance, then in the XX century. it became the theory of capital markets as their importance to the development of the economy increased dramatically.

For example, Macmillan's Dictionary of Money and Finance states that the main focus of analysis in modern finance theory is the operation of capital markets and value. financial assets". The new Palgrave Dictionary of Money & Finance. Ed. Newman P. Milgate M. Eatwell J. 1-3. Macmillan. 1992.

Tools of the modern theory of finance - actuarial mathematics (financial mathematics), financial (including banking) statistics, financial law, financial programming.

The reason is two trends.

Mathematization of the economy, i.e. the description of its laws in a model form requires an accurate definition of its parameters, which, as a rule, have a cost monetary form.

The use of theoretical results in management practice economic processes(business administration) and in economic policy requires increasing the accuracy of the model description of cash flows and assessing the risks of applying theoretical models.

THE EVOLUTION OF THE THEORY OF FINANCE

Aval

A bill of exchange guarantee to which the bill of exchange law applies. This guarantee means a guarantee of full or partial payment of the draft if the debtor has not fulfilled his obligations on time. Aval is given on the front side of the bill and is expressed by the words: "Consider as aval" or any other similar phrase and signed by the avalist. Aval is given for any person responsible for the bill, so the avalist must indicate for whom he gives guarantee. In the absence of such an indication, the aval is considered issued for the drawer, i.e. not for the debtor, but for the creditor. The avalist and the person for whom he is responsible are jointly and severally liable. Having paid the bill, the avalist acquires the right to claim back against the one for whom he issued the guarantee, as well as against those who are obliged to this person.

Prepaid expense

The amount of money issued against future payments for material assets, work performed and services rendered.

advice

In banking, commercial, accounting practice - a notice sent by one counterparty to another about changes in the state of mutual settlements or about transferring money, sending goods. The advice note, as a document, has a legal character.

Assets

Property of enterprises, which includes fixed assets, other long-term investments(including intangible assets), working capital, financial assets.

Acceptance

Agreement obligated person pay the payment request and thus make the settlements stipulated by the contract with the product supplier. The acceptance form of payment involves the presentation for payment for the supplied products of a payment request issued by the supplier of goods.

excise tax

Indirect tax included in the price of the goods and paid by the buyer. The law of the Russian Federation establishes the procedure for imposing excises on sold wine and vodka products, ethyl alcohol and food raw materials (except for those sold for the production of alcoholic beverages and wine products, beer, tobacco products, tires, cars, trucks with a carrying capacity of up to 1.25 tons, jewelry, diamonds, crystal products, carpets and rugs, fur products, as well as clothes made of genuine leather).

Stock

Securities issued by joint-stock companies and indicating the share of the owner (holder) in the capital of this company, giving the right to their owner to receive profit in the form of a dividend, and also, depending on the type, capable of giving the right to vote on general meeting shareholders (simple nominal). This type of equity securities is not issued by government bodies, they are issued only by industrial, commercial and financial corporations. The price at which a share is sold in the market is called the share price.

Audit activity

Activities of independent non-departmental financial control. Audit (independent financial control) is carried out by specialized audit firms and services. Auditing firms provide control and consulting services to all enterprises and organizations on a paid basis. Audit firms are independent organizations designed to help improve the quality of control, its objectivity.

Correspondent banks

Banks that carry out, on the basis of a correspondent agreement, each other's instructions for payments and settlements through specially open accounts or through the accounts of correspondent banks in a third bank.

bank guarantee

A written obligation given by a bank or other credit institution, or an insurance organization (guarantor) at the request of another person (principal), to pay the principal's creditor (beneficiary) in accordance with the terms of the obligation given by the guarantor sum of money upon presentation by the beneficiary of a written demand for its payment. A bank guarantee ensures the proper performance by the principal of his obligation to the beneficiary (main obligation). For the issuance of a bank guarantee, the principal pays a fee to the guarantor. A bank guarantee shall enter into force from the date of its issuance, unless otherwise provided for in the guarantee. Provided bank guarantee The obligation of the guarantor to the beneficiary does not depend in the relations between them on the main obligation for the performance of which it was issued, even if the guarantee contains a reference to this obligation.

Bank transfer

An instruction by one person (transferor) to the bank to transfer a certain amount in favor of another person (transfer recipient). The bank that has accepted the transfer order executes it through its correspondent.

Bankruptcy

The inability of the debtor to satisfy the claims of creditors for payment for goods (works, services), including the inability to provide obligatory payments to the budget and extrabudgetary funds.

barter deal

Non-currency, but valued and balanced exchange of goods, drawn up by a single agreement (contract).

Cashless payments

Settlements between organizations made by bank transfer of the amount from the account of the debtor organization to the account of the creditor organization according to settlement documents in a cashless manner. Payments can be made with the consent (acceptance) of the payer and on his behalf.

commodity exchange

Commercial enterprise, regularly functioning market of homogeneous goods with certain characteristics.

stock exchange

An organized and regularly functioning market for the purchase and sale of securities. The main functions of the stock exchange are the mobilization of temporarily free funds through the sale of securities and the establishment of the market value of securities.

Budget

The form of formation and spending of the fund of funds intended for financial support of the tasks and functions of the state and local self-government; an economic category represented by monetary relations arising between the state and legal entities and individuals regarding the redistribution of national income in connection with the formation and use of the country's budget fund, intended to finance the national economy, socio-cultural needs, defense needs and public administration.

Consolidated budget

A set of budgets for all levels of the budget system of the Russian Federation in the relevant territory.

budget deficit

The excess of budget expenditures over its revenues.

Budget income

Funds received free of charge and irrevocably in accordance with the law Russian Federation at the disposal of state authorities of the Russian Federation, state authorities of the constituent entities of the Russian Federation and local governments.

Budget surplus

The excess of budget revenues over its expenditures.

Budget expenses

Funds directed to financial support tasks and functions of the state and local self-government.

budget painting

A document on the quarterly distribution of budget revenues and expenditures and receipts from sources of financing the budget deficit, establishing the distribution of budgetary appropriations among recipients of budgetary funds and drawn up in accordance with the budget classification of the Russian Federation.

budget system

Based on economic relations and legal norms, the totality of all types of budgets in the country that have relationships established by law with each other. The unity of the budget system is based on the interaction of budgets of all levels, carried out through the use of regulatory revenue sources, the creation of targeted and regional budget funds, their partial redistribution. This unity is realized through a single socio-economic, including tax, policy.

The budget system of the Russian Federation

Based on economic relations and the state structure of the Russian Federation, regulated by the rules of law, the totality of the federal budget, the budgets of the constituent entities of the Russian Federation, local budgets and budgets of state off-budget funds.

budget loan

Budgetary funds provided to another budget on a returnable, gratuitous or reimbursable basis for a period not exceeding six months within a financial year.

Budget structure

Based on economic relations and legal norms, the totality of all types of budgets in the country. The main document in the construction of the budget system is the Constitution of the Russian Federation.

Budget law of the Russian Federation

A set of legal norms (mandatory rules of conduct) that delimit the scope of various budgets (for example, regional, regional, city, district, rural, settlement), determine the powers of individual state authorities in issuing a budget law, regulating the preparation and implementation of this law.

Budget regulation

The system of redistribution of funds, which consists in the transfer of part of the resources of the higher budget to the lower one in order to balance. The regulatory mechanism includes: subsidies; subventions; regulatory sources of income. Budgetary regulation is an integral part budget process.

budget device

The set of principles on which the organization of the budget system is based.

Budget appropriations

Budgetary funds provided by the budget list to the recipient or manager of budgetary funds.

Budget credit

Form of financing budget spending, which provides for the provision of funds to legal entities on a returnable and reimbursable basis.

Budget Process

The activity of public authorities, local governments and participants in the budgetary process, regulated by the norms of law, in drawing up and reviewing draft budgets, draft budgets of state extra-budgetary funds, approving and executing budgets and budgets of state extra-budgetary funds, as well as monitoring their execution.

Currency

The monetary unit used to measure the value of goods, the concept of "currency" is used in the following meanings: the monetary unit of a given country (US dollar, Japanese yen), banknotes foreign states, as well as credit and means of payment used in international settlements, and an international (regional) monetary unit and means of payment(transferable ruble, EURO).

Currency freely convertible

A currency freely and unlimitedly exchangeable for other foreign currencies.

Currency calculations

The system for organizing and regulating payments for monetary claims and obligations in foreign currency arising from the implementation of foreign economic activity. Settlements can be in cash and on credit, i.e. with installment payment. Cash settlement represents the full payment for the goods before the due date or at the moment of transfer of the goods or documents of title to the buyer. Settlement on credit or settlement with installment payment has two forms: commercial credit (credit from the exporter to the importer) to the issuance of advances by the importer to the exporter.

Exchange rate

The price of the monetary unit of a given national currency, expressed in monetary units of the currency of another country.

bill of exchange

A security that certifies an unconditional obligation of the drawer (promissory note) or other payer specified in the bill (bill of exchange) to pay, upon the expiration of the period stipulated by the bill, the amounts of money received on loan, the relations of the parties to the bill are regulated by the law on transferable and promissory note. The Law of the Russian Federation "On the monetary system of the Russian Federation" (Article 13) considers a bill of exchange a payment document used in non-cash payments. Russia adheres to the "Uniform bill of exchange law", adopted in 1930 in Geneva.

Promissory note credit

Credit issued by issuing a bill of exchange to the importer, who accepts it upon receipt of shipping and payment documents.

Extrabudgetary funds

A specific form of redistribution and use of financial resources attracted to finance certain social needs and used in a complex manner on the basis of organizational independence of funds.

Government loans

Credit relations between the state and legal entities and individuals, as a result of which the state receives certain amounts of money for a certain period for a certain fee, are carried out in the form of the sale of government securities, loans from extra-budgetary funds and in the order of obtaining loans from banks.

Government spending

Part of financial relations, which is due to the use of state revenues in connection with the implementation of its functions: security; defense; foreign economic relations; social; managerial.

public finance

Monetary relations regarding the distribution and redistribution of the value of the social product and part of the national wealth associated with the formation of financial resources at the disposal of the state and its enterprises and the use public funds on the costs of expanding production, meeting the socio-cultural needs of society, the needs of defense and management. State budget revenues consist of many sources and receipts. The totality of all types of state revenues, which is formed by various methods, constitutes the system of state revenues.

State off-budget fund

The form of formation and spending of funds generated outside the federal budget and the budgets of the constituent entities of the Russian Federation.

State loan

Monetary relations arising from the state with legal entities and individuals in connection with the mobilization of temporarily free funds at the disposal of public authorities and their use to finance public spending.

Devaluation

Depreciation of the national or international (regional) monetary unit in relation to the currencies of another country. Very often, devaluation reflects the depreciation of foreign exchange funds as a result of inflation.

Denomination

Consolidation of the national currency by exchanging, according to the established ratio, old banknotes for new ones in order to streamline monetary circulation, facilitating accounting and settlements in the country with simultaneous recalculation (in the same ratio) of prices, tariffs, wages and etc.

Depository

An organization that conducts depository activities.

Depository activity

Provision of services for the storage (deposit) of securities, as well as "servicing securities", i.e. fulfillment of the depositor's instructions for exercising the rights certified by the securities.

Deport

An exchange transaction for a period concluded on the stock exchange with the expectation of a decrease in the price of securities in order to obtain an exchange rate difference.

Deflation

Withdrawal by the state from circulation of a part of the circulating excess funds in order to reduce inflation.

Bank deposit agreement

An agreement under which one party (bank), which has accepted the amount of money (deposit) received from the other party (depositor) or received for it, undertakes to return the deposit amount and pay interest on it on the terms and in the manner prescribed by the agreement. A bank deposit agreement in which a citizen is a depositor is recognized as a public agreement. The rules on the bank account agreement shall apply to the relations between the bank and the depositor on the account to which the deposit has been made, unless otherwise provided by the rules of this chapter or follows from the essence of the bank deposit agreement.

Bank account agreement

An agreement under which the bank undertakes to accept and credit funds incoming to the account opened by the client (account holder), fulfill the client's instructions to transfer and issue the appropriate amounts from the account and conduct other operations on the account. The Bank may use the funds available on the account, guaranteeing the client's right to freely dispose of these funds. The Bank is not entitled to determine and control the directions of use of the client's funds and establish other restrictions not provided for by law or the bank account agreement on its right to dispose of the funds at its own discretion.

State loan agreement

An agreement under which the Russian Federation, a subject of the Russian Federation, acts as a borrower, and a citizen or legal entity acts as a lender. Government loans are voluntary. A state loan agreement is concluded by acquiring by the lender of issued government bonds or other government securities certifying the lender's right to receive from the borrower the funds provided to him on loan or, depending on the terms of the loan, other property, established interest or other property rights within the time limits stipulated by the conditions issuance of a loan. It is not allowed to change the terms of the loan issued into circulation. The rules on the state loan agreement apply accordingly to loans issued by the municipality.

Loan agreement

An agreement under which one party (lender) transfers money or other things defined by generic characteristics to the ownership of the other party (borrower), and the borrower undertakes to return to the lender the same amount of money (loan amount) or an equal amount of other things of the same kind received by him and quality. The loan agreement is considered concluded from the moment of transfer of money or other things. A loan agreement between citizens must be concluded in writing if its amount exceeds at least ten times the minimum wage established by law, and in the case when the lender is a legal entity, regardless of the amount. In confirmation of the loan agreement and its terms, a borrower's receipt or other document may be presented certifying the transfer of a certain amount of money or a certain number of things by the lender to him.

Surety agreement

An agreement under which the guarantor undertakes to be responsible to the creditor of another person for the fulfillment by the latter of his obligation in whole or in part. A guarantee agreement may also be concluded to secure an obligation that will arise in the future. The suretyship agreement must be made in writing. Failure to comply with the written form entails the invalidity of the surety agreement. If the debtor fails to perform or improperly performs the obligation secured by the surety, the surety and the debtor shall be liable to the creditor jointly and severally, unless the law or the surety agreement provides for subsidiary liability of the surety.

State external debt

Debt obligations of the Government of the Russian Federation to foreign states or international organizations denominated in foreign currency.

State domestic debt

Debt obligations of the Government of the Russian Federation, denominated in the currency of the Russian Federation, to legal entities and individuals, unless otherwise established by the regulatory acts of the Russian Federation. The legal forms of debt obligations are loans received by the government, government loans received through the issuance of securities on behalf of the Government of the Russian Federation, other debt obligations guaranteed by the Government of the Russian Federation.

Debtor, debtor company

An enterprise that does not fulfill or will not be able to fulfill its obligations to creditors in the near future. The legislation of the Russian Federation introduced the concept of an insolvent debtor (bankrupt).

Grants

Budgetary funds provided to the budget of another level of the budgetary system of the Russian Federation on a gratuitous and irrevocable basis to cover current expenses.

Fixed Income

Revenues that are fully or partially transferred to a certain type of budget.

Pledge

A civil law action that entitles the creditor under a secured obligation (pledge holder) in the event of the debtor's failure to fulfill this obligation, to receive satisfaction from the value of the pledged property preferentially over other creditors. The pledgee has the right to receive satisfaction on the same basis from the insurance indemnity for the loss or damage to the pledged property, regardless of in whose favor it is insured, unless the loss or damage occurred due to reasons for which the pledgee is responsible. Pledge land plots, enterprises, buildings, structures, apartments and other real estate (mortgage) is regulated by the Mortgage Law. The pledge arises by virtue of the contract. A pledge also arises on the basis of the law upon the occurrence of the circumstances specified in it.

Investment fund

An intermediary who, by issuing a securities, attracts privatization certificates and funds from citizens for their subsequent investment in privatization objects, real estate and other securities joint-stock companies. There are investment funds of open and closed types. Open-end investment funds sell their securities with the obligation to buy them back at the first request of investors. Closed-end investment funds issue their securities with the obligation to redeem them at the end of the period for which the fund was established.

Investors

Business entities (government bodies that allocate funds to cover urgent and long-term needs), persons to whom securities belong on the basis of ownership (owners) or other property rights (owners).

Endorsement

Its essence lies in the fact that reverse side bill of exchange or an additional sheet (allonge), an endorsement is made, by means of which another person, along with the bill, transfers the right to receive payment. The person who transfers the bill of exchange by endorsement is called the endorser, and the person who receives it is called the endorser. The act of transferring a bill is called endorsement or endorsement. An endorsement may be made in favor of any person, including even in favor of the payer or drawer. It should be simple and unconditional. Partial endorsement, i.e. transfer of only part of the amount of the bill is not allowed. The endorser is responsible for acceptance and payment. He can absolve himself of responsibility by saying "No turnover on me."

Collection

A form of settlement in which the bank (issuing bank) undertakes, on behalf of the client, to carry out actions at the expense of the client to receive payment and (or) acceptance of payment from the payer. The issuing bank that received the client's order is entitled to engage another bank (executing bank) for its execution. The procedure for making settlements for collection is regulated by the law established in accordance with it. banking rules and business customs applied in banking practice.

Limitation of actions

The term for the protection of the right on the claim of a person. whose right has been violated. The general statute of limitations is three years. For certain types requirements, the law may establish special statute of limitations, reduced or longer in comparison with general term. The limitation period, in particular, does not apply to the requirements of depositors to the bank for the issuance of deposits.

Commercial banks

Private and state banks that carry out universal operations for lending to industrial, commercial and other enterprises, mainly at the expense of the monetary capital that they receive in the form of deposits.

commercial loan

Loan provided in commodity form sellers to buyers in the form of a deferred payment for goods sold. It is provided against the obligations of the debtor (buyer) to repay within a certain period of time both the amount of the principal debt and accrued interest. There are five main ways to provide a commercial loan: bill method; open account; discount subject to payment within a certain period; seasonal credit; consignment.

Bankruptcy estate

The property of the debtor, which may be levied in the process of bankruptcy proceedings.

Bankruptcy proceedings

A procedure aimed at the forced or voluntary liquidation of an insolvent enterprise (i.e. bankrupt).

bankruptcy creditor

An individual or legal entity that has property claims against the debtor and is not the bearer of security rights.

Consignment

A type of lending in which a retailer can simply receive inventory without obligation. If the goods are sold, then payment will be made to the manufacturer, and if not, then the retailer can return the goods to the manufacturer without paying a penalty. Consignment is usually used when selling new, atypical goods, the demand for which is difficult to predict. An example is the practice of producing and selling new textbooks for institutes. Book publishers send their books to institute bookstores with the condition that they be returned if they are not sold.

Loan agreement

An agreement under which a bank or other credit organization (creditor) undertakes to provide funds (credit) to the borrower in the amount and on the terms stipulated by the agreement, and the borrower undertakes to return the received amount of money and pay interest on it. The loan agreement must be concluded in writing. Failure to comply with the written form entails the invalidity of the loan agreement. Such an agreement is considered null and void. The lender has the right to refuse to provide the borrower with the stipulated loan agreement a loan in whole or in part in the presence of circumstances that clearly indicate that the amount provided to the borrower will not be returned on time. The borrower has the right to refuse to receive a loan in whole or in part, notifying the lender about this before the term for its provision established by the agreement, unless otherwise provided by law, other legal acts or a loan agreement. If the borrower violates the obligation stipulated by the loan agreement intended use loan, the lender may also refuse further lending to the borrower under the agreement.

Leasing

Represents a special form financial investments for the purchase of equipment, durable goods or real estate. Participants leasing operations are, as a rule, three parties: the enterprise - the manufacturer of the object of leasing; leasing company - lessor; as well as an enterprise - a tenant (lessee).

Broker

An intermediary in the conclusion of transactions on stock and commodity exchanges, which acts on behalf of clients and at their expense.

Minimum budget security

The minimum allowable cost of state or municipal services in monetary terms, provided by state authorities or local governments per capita at the expense of the relevant budgets.

Minimum State Social Standards

Public services, the provision of which to citizens on a gratuitous and irrevocable basis at the expense of financing from the budgets of all levels of the budgetary system of the Russian Federation and the budgets of state non-budgetary funds, is guaranteed by the state at a certain minimum allowable level throughout the territory of the Russian Federation.

Tax

Mandatory, individually gratuitous payment collected from organizations and individuals in the form of alienation of funds belonging to them on the basis of ownership, economic management or operational management of funds, in order to financially support the activities of the state and (or) municipalities. Signs of the tax: compulsory character; gratuitousness; non-equivalence.

Tax inspections

Operational financial control. The head of the system of tax authorities is the Ministry of Taxes and Dues of the Russian Federation. The tasks of the tax services are: a) control over compliance with tax legislation, ensuring the completeness and timeliness of making tax payments to the budget; b) implementation of checks financial condition enterprises and organizations, regardless of departmental subordination and their organizational - legal form; c) control over the correctness of determining taxable profit (income) in order to prevent its underestimation; d) registration of all subjects, as well as real and potential objects of taxation; e) accounting, evaluation and sale of confiscated, ownerless property, property transferred to the state, treasures. Tax inspectorates have the right: to receive in organizations of various forms of ownership Required documents and information, with the exception of those that constitute a trade secret determined by law; monitor compliance with the legislation on entrepreneurship of citizens; inspect all premises used for generating income; suspend all operations of enterprises and citizens in case of non-submission of documents; seize documents evidencing the concealment of income; apply sanctions and fines; file suits in court and arbitration for the liquidation of enterprises, the recognition of transactions as invalid.

Immovable things (real estate, real estate)

Land plots, subsoil plots, other objects and everything that is firmly connected with the land, i.e. objects, the movement of which is impossible without disproportionate damage to their purpose, including forests, perennial plantings of a structure building. Immovable things also include aircraft and aircraft subject to state registration. sea ​​vessels, inland navigation vessels, space objects. Other property may also be classified as immovable by law.

Penalty (fine, penalty)

An amount of money determined by law or contract that the debtor is obliged to pay to the creditor in the event of non-performance or improper performance of the obligation, in particular in the event of delay in performance. Upon a demand for the payment of a penalty, the creditor is not obliged to prove the infliction of losses to him. The creditor is not entitled to demand payment of a penalty if the debtor is not liable for non-performance or improper performance of obligations.

Government bonds

Securities issued by the state in order to attract part of the borrowed funds to the state budget. Income received from state securities, unlike corporate securities, has preferential taxation. Currently, the Ministry of Finance of the Russian Federation, on behalf of the Government of the Russian Federation, attracts short-term borrowed funds legal entities and the population under bonded loans. The most common short-term loan is a loan for the issuance of government short-term zero-coupon bonds (GKOs).

Corporate bonds

Mortgage bonds (backed by physical assets) unsecured bonds (direct debt that does not create a property claim against the corporation) bonds secured by other securities of the firm (backed by shares or debentures of the company) convertible bonds (gives the investor the right to purchase ordinary shares of the same company at a certain price at a certain time) income bonds (yielding interest only when income is earned).

Municipal bonds

Issued to raise funds for the construction or repair of public facilities: roads, bridges, water supply systems, etc. Divided into the following types of general obligation bonds (backed by the issuer's good faith) project income bonds (repaid from project income for funding for which they are issued).

Bond

A security that certifies the right of its holder to receive from the person who issued the bond, within the period stipulated by it, the par value of the bond or other property equivalent. A bond also grants its holder the right to receive a fixed percentage of the nominal value of the bond or other property rights.

Monetary obligations

Must be expressed in rubles. A monetary obligation may provide that it is payable in rubles in an amount equivalent to a certain amount in foreign currency or in conventional monetary units (ecu, for example). In this case, the amount payable in rubles is determined by official exchange rate of the relevant currency or conventional monetary units on the day of payment, unless a different rate or other date of its determination is established by law or by agreement of the parties.

Overdraft

A negative balance on the client's current account, sometimes acquiring the status of a loan, i.e. form short term loan the provision of which is carried out by debiting funds from the client's account by the bank in excess of the balance of funds on the account, as a result of which a debit balance is formed. With an overdraft, all amounts credited to the client's current account are sent to repay the debt, so the amount of the loan changes as funds are received, which distinguishes an overdraft from ordinary loans. Interest is charged at existing or agreed rates.

Option

The right to choose the method of fulfilling the obligation provided by one of the parties to the contract, its terms or the right to refuse to fulfill the obligation under certain conditions.

Option loan

Option loan form of loan or debt obligation under which the creditor, within certain limits, is given the right to choose repayment.

Offeror

The person making the offer.

Offer

A formal offer to a certain person to conclude a deal, indicating all the conditions necessary for its conclusion.

Liabilities

Liabilities (excluding subventions grants own funds and other sources) enterprises consisting of borrowed and borrowed funds, including accounts payable.

Bill of exchange (draft)

Issued and signed by the creditor (drawer). It contains an order to the debtor (drawee) to pay within the specified period the amount indicated in the bill to a third party (receiver).

Payment order

An instruction by the payer to the bank to transfer a certain amount of money to the account of the person indicated by the payer in this or another bank within the period provided for by law or established in accordance with it, if a shorter period is not provided for by the bank account agreement or is not determined by the customs of business turnover used in banking practice at the expense of funds on his account.

Policy

A document of the insurance body confirming the existence of a concluded insurance transaction.

duties

Monetary amounts collected by specially authorized institutions for actions performed in favor of an enterprise or individuals.

Company

The property complex used for business activities. In general, an enterprise as a property complex is recognized as real estate. The composition of the enterprise as a property complex includes all types of property intended for its activities, including land buildings, equipment, inventory, raw materials, products, rights of claim, debts, as well as rights to designations that individualize the enterprise, its products, works and services (company name, trademarks, service marks) and other exclusive rights, unless otherwise provided by law or contract .

Profit (loss) from the sale of products and goods

It is defined as the difference between the proceeds from the sale of products (works, services) in current prices without value added tax and excises, as well as for its production and sale

Promissory note (solo bill)

It is issued and signed by the debtor and contains his unconditional obligation to pay the creditor a certain amount at the stipulated time and in a certain place.

Regulatory income

Revenues that are intended to support the lower budget, observing subordination. The list of fixed and regulating incomes is fixed by special tax laws and codes.

reserves

Part of the financial resources that is intended to finance the needs that arise unforeseen and are aimed at both simple and expanded reproduction and consumption. Insurance reserves- part of the financial resources aimed at compensating for damages in insured events. Insurance financial reserves - financial reserves of insurance companies. These reserves are needed when current funds not enough to pay.

Decision to issue securities

A written document registered with the state registration authority and containing data sufficient to establish the scope of the rights certified by the security.

Ruble

The currency of the Russian Federation, legal tender must be accepted at face value throughout the Russian Federation.

Stocks and bods market

Part of the loan capital market where the issue and purchase and sale of securities is carried out. Through the securities market (banks, special credit institutions and the stock exchange), the monetary savings of legal entities, individuals and the state are accumulated and directed to the production and non-productive investment of capital. A distinction is made between the primary securities market, where the issue and initial placement of securities are carried out, and the secondary market, where the sale (circulation) of previously issued securities is carried out.

savers

Legal entities and individuals who accumulate funds due to the fact that the costs are less than the accumulated funds concentrated on the hands in the form of a person or on bank accounts (population, enterprises and the state).

Savings (deposit) certificate

A security certifying the amount of the deposit made to the bank and the right of the depositor (certificate holder) to receive after due date the amount of the deposit and the interest stipulated in the certificate at the bank that issued the certificate, or at any branch of this bank. Deposits are on demand (give the right to withdraw certain amounts upon presentation of a certificate) and urgent (which indicate the withdrawal period of the deposit and the amount of interest due).

Collection

Mandatory contribution levied from organizations and individuals, the payment of which is one of the conditions for the commission in the interests of payers of fees by state bodies, local governments, other authorized bodies and official types of securities. Financial market participants are savers, investors, issuers.

Financial plan

A systemic set of measures of material mediation of the functioning of the state. It is drawn up for a period of 1 to 5 years and is included in the budget. By shape financial plan is a statement of goals, figures and organizational proposals for the planning period. At the enterprise, planning is based on the consideration of the law of value, and at the same time planning acts as an economic category. Financial plans have all the links financial system enterprises and organizations operating on a commercial basis draw up balance sheets of income and expenses, institutions engaged in non-commercial activities - estimates, cooperative organizations, public associations and insurance companies - financial plans, public authorities - budgets of different levels. The object of financial planning is the financial activities of business entities and the state, and the final result is the preparation of financial plans, ranging from estimates of a separate institution to a consolidated one. financial balance states. Each plan defines income and expenses for a certain period, links with the links of the financial and credit systems (contributions to social insurance contributions, payments to the budget, payment for a bank loan, etc.). All parts of the financial system have financial plans. Enterprises and organizations operating on a commercial basis make up a “balance of income and expenses”, enterprises and organizations operating on a non-profit basis draw up an “estimate”, a plan of public associations - a “financial plan”, state authorities make up the "budget" (of different levels central, local, subjects of the Federation).

Financial return

The amount of profit received on invested resources. The main task is to reduce the financial intensity and increase the financial return in social production. At the same time, it must be remembered that an improved reproduction structure of financial resources for the value of a social product is an important reserve for the growth of financial resources.

Finance

The totality of objectively determined economic relations that have a distributive nature, a monetary form of expression and materialize in cash income and savings formed in the hands of the state and business entities for the purposes of expanded reproduction, material incentives for workers, satisfaction of social and other needs. The condition for the functioning of finance is the availability of money, and the reason for the emergence of finance is the need for business entities and the state in resources to ensure their activities.

Stock Exchange

A specialized organization that brings together professional participants in the securities market, creating conditions for the concentration of supply and demand, as well as for increasing the liquidity of the market as a whole. An exchange is a specific trading organization that is subject to special rules and procedures. In the process of exchange trading meetings, special methods are used to establish market price(rate) of the Central Bank, information about which, along with information about the volume of completed transactions, becomes the property of a wide range of investors. In this respect, the stock exchange can be likened to a sensitive device that signals the state of the stock market, and through it - the state of affairs in the economy as a whole.

Forfaiting

Such credit operation, at which the exporter, having received from the importer the drafts (bills of exchange) accepted by the latter, sells them at a discount to a bank or a specialized financial firm. When the due date for payment of the drafts, the importer usually repays his debt in semi-annual installments. Traditionally, forfaiting-based lending to foreign trade firms is usually done by large banks. By resorting to forfaiting, the exporter gets the opportunity to additionally mobilize funds and reduce accounts receivable. The exporter turns to the forfaiting market if he fails to obtain a guarantee from a state institution, or his foreign trade contract is not creditworthy enough, or his own financial position does not allow you to divert funds for a long time.

Futures or futures contract

A standard contract for the supply of goods in the future at a price determined by the parties during the transaction.

security paper

A document certifying in compliance with the established form and required details property rights, the implementation or transfer of which is possible only upon its presentation. With the transfer of a security, all the rights certified by it are transferred in aggregate. In cases provided for by law, or in the manner prescribed by it, for the exercise and transfer of rights certified by a security, evidence of their fixing in a special register (regular or computerized) is sufficient. Securities include a government bond, bond, bill, check, deposit and savings certificate, bank savings book to bearer, bill of lading, shares, privatization securities and other documents that are classified as securities by securities laws or in the manner prescribed by them. income: investment and course.

Registered securities

Securities for which investor information must be available to the issuer at a securities registry firm.

Bearer securities

Securities, the transfer of rights to which and the exercise of the rights certified by them do not require mandatory identification of the name of the investor.

Securities circulation

Conclusion of civil transactions involving the transfer of ownership of securities.

Securities release form

The form of issuance of securities, in which the investor is established on the basis of presentation of a properly executed security certificate or, in the case of depositing such a certificate, and entry on the depo account.

Central banks

Banks that issue banknotes and are the centers of the credit system. They occupy a special place in it and are, as a rule, state institutions.

Check

A security that contains an unconditional order from the drawer of a check to a bank to pay the amount specified in it. Only a bank where the drawer has funds that he has the right to dispose of by issuing checks can be indicated as a payer on a check. It is not allowed to withdraw a check before the expiration of the term for presenting it. Issuing a check does not redeem monetary obligation for which it was issued. The form of a check and the procedure for filling it out are determined by law and the banking rules established in accordance with it.

Issue right

The set of legal rules governing the issuance of money into circulation.

Emission

Issuance of banknotes. On the territory of the Russian Federation, the monopoly right to issue banknotes into circulation belongs to Central bank RF.

Issuers

Legal entities that can issue securities. With the help of the financial market, the money savings of savers are attracted to invest the costs of developing production, implementing state and regional targeted programs and other needs. An objective prerequisite is the discrepancy between the needs for financial resources of business entities and the availability of sources of financial resources.

Entity

An organization that has separate property in ownership, economic management or operational management and is liable for its obligations with this property may, on its own behalf, acquire and exercise property and other non-property rights, incur obligations, be a plaintiff and defendant in court. Legal entities must have an independent balance sheet or estimate and be registered as a legal entity. Legal entities may be organizations pursuing profit as the main goal of their activities ( commercial organizations) or those that do not set profit making as such a goal and do not distribute the profit received among the participants (non-profit organizations).

Finance- in the Russian scientific and educational literature are defined as a set of economic relations that arise in the process of formation, distribution and use of centralized and decentralized funds of funds. Usually we are talking about trust funds of the state or business entities (enterprises). The most important concept in the field of finance is the budget.

Finance classification

Traditionally, finance is divided into public (centralized) finance and private (decentralized) finance.

Types of public finance

• centralized
• state
• municipal finance

Types of private finance (decentralized)

• corporate finance (finance of organizations)
• household finance (personal and family finance)

public finance

Public (centralized) finance - a system of formation and use of funds of funds intended to ensure the activities of state and municipal authorities. Public finance includes state finance and municipal finance.

Centralized finance represented by the budget system, as well as state and municipal credit.

public finance. The budgetary system of the Russian Federation, in accordance with the Budget Code of the Russian Federation, consists of budgets and off-budget funds of all levels (federal, regional and municipal).

municipal finance. Public finance management is carried out through the system of authorities at all levels of government. In the Russian Federation, these are federal authorities, authorities of the constituent entities of the Russian Federation and municipal authorities.

Private finance

Corporate Finance- this is a set of financial operations carried out by enterprises to attract financial resources and their effective use, including methods of financing, investment projects, liquidity management, risk protection. Organization finances: formation, distribution, use of monetary funds.

Functions of corporate finance:

• accounting- with the help of the financial mechanism, accounting of all produced costs of goods, works, services is carried out.
• Distribution- as a result of the sale of goods, works, services, the newly created value is distributed and redistributed between the manufacturer, intermediary, and the state budget.
• stimulating- through financial leverage, the enterprise can stimulate the development of priority areas of activity.
• Control– the enterprise conducts internal and external control over the safety of property, efficient use of resources, rational use of funds.

Household finances- a set of relations regarding the creation and use of funds of funds and financial assets necessary to ensure the livelihoods of members of the household. The totality of monetary relations regarding the creation and use of funds of funds, which enter the household and its individual participants in the process of their socio-economic activities.

Enterprises are funds that are formed in the process of selling products or services, come from investors or creditors. They are used to expand production, can be used to reward employees or to form cash funds. are in circulation and cannot be extracted and used for other purposes.

Formation of the composition of finance

Finance consists of:

• Cash funds.
• Investment.
• Communicative financial relations.

Finance can appear as a result of the redistribution of funds and cost reduction.

Enterprise finance is a complex structure that includes government finance, industry finance, the nominal value of securities, insurance payments, as well as cash in circulation and loans.

Material resources are the basis of the production process.

They are formed from the following sources:

• Own funds.
• Loans and credits.
• Attracted finance (investment support).

Own funds, as a rule, are in circulation and make up a large part of the company's finances. Their expiration date is not clearly defined. Own funds appear as a result of the sale of products and are pledged to the authorized capital.

Borrowed funds of an organization are monetary resources that are issued to a company for a certain period of time, subject to return. Usually borrowed funds are formed thanks to bank loans (both long-term and short-term).

Attracted financial resources nominally do not belong to the organization and are transferred for temporary use on certain conditions. Investments can be directed to the expansion of production or to local tasks.

Each of the above sources is part of the company's assets and can be used to provide material support for the production and economic activities of the enterprise with one single goal - to maximize profits.

The company's financial resources are the sum of its own funds, investments and loans that take part in the circulation of capital and are required for the functioning of production.

Components of financial resources:

• Funds in circulation.
• for depreciation.
• Funds pledged in the trust fund.
• Funds pledged in the corporate fund.
• Credit funds.

In world literature

Modern interpretations of the term finance originate in cameralism - the German version of mercantilism - a science that dealt with the problem of the formation and targeted use of the state treasury. Cameralism was based on displaying the flows of revenues and expenditures of the state budget. The budget in cameralism was the starting point at which a comparison takes place between income and expenses for a certain reporting period. The budget is based on the principle that income must match expenditure. Under the finances, cameralists understood the management of income intended for use for the needs of the state. The concepts of "camera science" and "financial science" in Western literature were sometimes used as synonyms, but after chamber chambers were established in the structure of the cameral economy, which included the police, the term "finance" acquired an independent, narrower meaning: “government power ... is forced to attend to the preparation material assets, as auxiliary means for achieving their goals ... Hence, a special branch of government activity arises, which has as its goal the acquisition, preservation and proper use of material values ​​\u200b\u200bnecessary for state power and consists in running its own economy or in taking care of state revenues and expenses. These cares of the government ... constitute the subject of the so-called finance, financial management, government economy or state economy ”(in pre-revolutionary Russia, the term was used in the same sense as in Germany (see).

In the English-language literature of the second half of the 19th - early 20th century, the term "finance" was not interpreted as unambiguously as in German. In particular, Webster's dictionary (1886 edition) stated that finances are “revenues (revenue) of the ruler or state; sometimes income individual» . This definition Finance is remarkable in two respects. Firstly, it reflects the point of view of a narrow circle of Western scientists of that time, according to which the sphere of finance was limited only to state revenues (see on this occasion). Secondly, the definition reflected the fact that the term "finance" was used not only in relation to the public sector of the economy, but also to the private sector. The fact that the term finance was used in Western literature of the second half of the 19th century, not only in connection with the public sector of the economy, is also evidenced by some specialized publications of that time (see, for example), where in the context of finance it is said not only about government revenues and expenditures, but also about speculation in securities, capital accumulation and interest rate on loan bank capital, as about important aspects financial science. The book of the English author G. King "Theory of Finance" does not mention the public sector of the economy at all, but it is about profit, actuarial calculations, simple and compound interest for loan capital. In this regard, the definition of finance by F. Cleveland is also indicative: “Finance is a branch of business that deals with obtaining and spending the funds necessary to equip and manage an enterprise. … What are funds? How to get them? How to manage them? The answers to these three questions cover the entire field of finance. It is noteworthy that K. Marx in his "Capital" uses the term "finance" in the context of money capital, banks and stock exchanges.

In general, all interpretations of the term "finance" in Western literature of the second half of the 19th - early 20th centuries are divided into three groups:

The explanation for such ambiguous interpretations of finance in Western literature is set out in the book by K. Plen "Introduction to Public Finance" (1921), where the author argued that the transfer of the semantic content of the term "finance" from public to private sector economics occurred as a result of metonymy. As a result, used without qualifying adjectives (“public” (public), “personal” (personal), “corporate” (corporate)), the term “finance” has received a wider meaning than it originally had, and, in addition to the public sector, has become cover issues of capital, profits, income and expenses of enterprises and individuals. In this regard, in order to eliminate the ambiguity of the adjective “financial” (financial), which arose as a result of metonymy, K. Plen, and after him M. Hunter, pointed out that in relation to public finance it is more correct to use the adjective “fiscal” (fiscal) , while saying "fiscal year" and not "fiscal year" .

The wording of the definitions of the term "public finance" uses the historically established descriptive approach, reflecting the external manifestations of the category, expressed in the formation and use of the state and local budgets:

Public finance is based on the theory of the distribution of public goods. Its essence lies in the fact that there are certain benefits (national defense, public order, roads, etc.), the need for which cannot be satisfied and paid for individually through commodity-money exchange. As a consequence, the need for such collective goods cannot be realized through the market mechanism. Proceeding from this, the distribution of public goods is assumed by the state represented by central and local authorities through the budgets of the corresponding levels. "Government spending is part of the consumption of a society in which the state is the regulator". Through fiscal and budgetary instruments, public goods are not only distributed, but also redistributed. In particular, redistribution can be done by combining high taxes for wealthy citizens, and subsidies to citizens with low income. Thus, through the redistribution of benefits between high-income and low-income segments of the population, the concept of social justice and humanism is realized: “If we believe that moral duty society as a whole to help the weak, then helping the poor is for the common good.

Among the definitions devoted to private sector finance, the dominant place is occupied by the definitions of corporate finance, which are also descriptive in nature and do not differ, however, in the strictness of the wording: 1) “corporate finance is associated with the effective and efficient management of the organization's finances to achieve the goals of this organization. This includes planning and control over the provision of resources (where they are drawn from), allocation of resources (where they are deployed), ultimate control over resources (whether they are effectively used or not).<…>Two key corporate finance concepts that have essential in decision making, it is the ratio between risk and return, as well as the time value of money”; 2) “Finance - risk assessment and management.<…>From a financial point of view, a corporation is a collection of risky cash flows”; 3) "Corporate finance - the acquisition and distribution of funds or resources of a corporation in order to maximize the wealth of shareholders"; 4) "It is to take money to make money"; 5) "Business finance is the study of how financial and investment decisions should be made in theory and how they are made in practice."

To mark the boundary between public finance and private sector finance, representatives of the Western scientific school have formulated a number of features, one of which stands out as the most significant: public finance and private sector finance have different goals(cm. ). The main goal of the private sector is profit, that is, the maximum possible increase in the exchange value of capital through reproduction and / or speculation. In turn, the goal of public finance is the distribution and redistribution of public goods consumed at the national and regional levels (for more details on the target functions of finance, see).

In modern Western scientific and educational literature, the terms "financial management", "managerial finance", "corporate finance" and "business finance" are almost equivalent and are interchangeable. "Finance is the proper management of money"; "finance can be defined as the art and science of money management".

A special place in world financial science is occupied by the theory of Soviet (socialist) finance, which is a modified version of Western theory public finance, adapted to the Soviet model of the economy and the ideas of Marxism. In particular, as opposed to the theory of the distribution of public goods through finance and personal goods through market exchange (T-D, D-T)) K. Marx proposed a scheme for the distribution of goods in a society based on collectivism, which provided for measuring value not indirectly through money, but directly through working time: “The individual working time of each individual producer is the part of the social working day delivered by him, his share in it. He receives a receipt from society that he has delivered such and such a quantity of labor (minus his labor in favor of public funds), and according to this receipt he receives from public stocks such a quantity of commodities for which the same amount of labor has been expended. Such a scheme for distributing goods according to receipts did not imply the existence of money. As a result, "the entry of the USSR into the period of socialism was considered by many economists as the beginning of the transition to direct product exchange and the withering away of money, credit, and finance." Based on this, in the first edition of the textbook “Finances of the USSR”, published in 1933, “the entire presentation of materials proceeded from the fact that after the victory of socialism, finances would be“ buried ”as a relic of capitalism” . However, the practice of the first years of Soviet power showed that it was premature to abandon money as a measure of value. The communist ideology was forced to admit that money would remain in the USSR as an instrument of the bourgeois economy, which, according to I. Stalin, "was taken into the hands of the Soviet government and adapted to the interests of socialism."

The key distinguishing feature of the Soviet model of the economy was that by the end of the second five-year plan (1938), the share of public property in the USSR was 98.7%, only 1.3% of all the country's production assets were in the personal ownership of collective farmers and small handicraftsmen. Thus, practically the entire production sector in the USSR received the status of a public one, and the state, on behalf of society, completely assumed the distribution of benefits in the production sector as well. From state budget The USSR covered not only the costs traditionally characteristic of the capitalist model of the economy (according to public administration, national defense, law enforcement, road construction, etc.), but also the main share of the costs of expanded reproduction (production capital investments). The state budget of the USSR actually became public investment fund under the control of the state, through which the redistribution of resources between various enterprises and sectors of the public economy. As a consequence, the concept of "Soviet finance" was supposed to reflect this fact.

The beginning of the formation of scientific approaches to the interpretation of public finance, taking into account the realities of the socialist model of the economy, was laid by a scientific discussion at a meeting held in 1944 by the Department of Educational Institutions of the USSR Ministry of Finance. The main outcomes of the discussion were:

1. consideration of Soviet finance as a system of monetary relations associated with the operation of the law of value;
2. such an extension of the subject of the doctrine of Soviet finance, which to one degree or another includes monetary relations within the state production sector and the relationship of the state and its production sector with the collective farm-cooperative production sector and with the population.

The discussion had a serious impact on the entire further course of the development of Soviet financial science. Under its influence, over the next twenty-five years, three scientific concepts of Soviet finance were formed in the USSR: distribution, reproduction, and the concept of E. A. Voznesensky (sometimes called the legal concept).

Distribution concept

The author of the most common Soviet theoretical concept of public finance, distributive, is V.P. Dyachenko (Moscow school), who believed that “there is no reason to refuse to apply the historically established concept of public finance to a socialist society” . Under the "historically established" was understood the idea of ​​finance as a monetary relationship, "firstly, distributive, and secondly, associated with the existence and functioning of the state" . Based on this, the Western theory of the distribution of public goods was adapted to the conditions of the Soviet model of the economy through a hidden terminological agreement, the essence of which was that the term "distribution" began to mean not only the distribution of public goods between the sphere of production and the sphere of consumption, but also the process of splitting gross cash receipts at public production enterprises (the so-called "primary distribution"). In addition, in view of the complete socialization of the manufacturing sector, to indicate the difference between public funds (in the understanding of this phrase accepted by Western science) and the funds of private enterprises, which also became public in the USSR, the concepts of “centralized funds” and the socialist state is a system of monetary relations, on the basis of which, through the planned distribution of income and savings, the formation and use of centralized and decentralized funds of the state's monetary resources is ensured in accordance with its functions and tasks.

To emphasize the differences between the distribution of public goods under socialism and under capitalism, the finances of Soviet enterprises were divided by supporters of the distribution concept into two components: production and distribution. The so-called "primary distribution" (of gross income from various funds of the enterprise) became part of the finances of the socialist state, and the "production" component was singled out in an independent category "finances of the sectors of the national economy of the USSR", which is the monetary side of relations developing at enterprises in the process of value movement in the production form (fixed assets, components, raw materials, finished products): "The totality of monetary relations that objectively exist in the sectors of the national economy, arising in the process of production and sale of products and mediating this process, constitutes the finances of the sectors of the national economy of the USSR."

Unlike Western scientists who singled out one function from public finance - distributive (redistributive), Soviet financial theorists endowed the finances of the USSR with another function - control: “In the process of developing the doctrine of the finances of a socialist state, their two main functions were formulated - distributive and control. The first was considered as common for public finance both in pre-socialist formations and under socialism, but in pre-socialist formations it was reduced to the redistribution of monetary resources, and under socialism it also extends to the relations of the primary distribution of national income; the second (control) was defined as a specific function of Soviet finance. At the same time, the author of the distributive concept endowed the term "redistribution" with a different meaning than was accepted in the Western theory of the distribution of public goods. Based on the fact that, according to the official Soviet ideology, there were no poor and rich in the USSR, there was no need to redistribute resources between them. As a result, the term "redistribution" in Soviet financial theory has lost its original meaning. Redistribution began to be understood as the distribution of what went into the state budget after the so-called. "primary distribution" inside manufacturing enterprises. In particular, thanks to this kind of "redistribution" in the USSR, planned unprofitable enterprises and even entire industries could exist, the losses of which were covered through the state budget at the expense of the profits of other public enterprises and industries.

reproductive concept

The reproductive concept of Soviet finance, the author of which is A. M. Aleksandrov (Leningrad school), was fundamentally different from the distribution one in that monetary relations within enterprises were not divided into distribution (the so-called “primary distribution”) and reproduction (the so-called “primary distribution”). mediation) components, but were combined into one whole under the name "mediation of the production process" and were fully included in the subject area covered by the concept of "social finance". As a result of this approach, all monetary relations included in the concept of "finance of socialism", according to the reproduction concept, were a system of two types of relations:

1) "indirect" 2) distributive (in the true sense of the word, originally adopted in the Western theory of the distribution of public goods).

At the same time, finance, in addition to control and distribution, was endowed with the function of "mediating the circulation of production assets." “In this function, finance serves not only the phases of the circuit D-C and C-D, but also the phase of the movement of the funds of enterprises in their production form.” According to the reproduction concept, socialist finance is “a system of monetary relations that mediate the circulation of production assets in the national economy on an expanded basis and ensure the formation and use of various funds to meet the diverse needs of a socialist society.”

A long-term scientific discussion between supporters of the distribution and reproduction concepts boiled down to the extent to which the finances of Soviet enterprises and sectors of the national economy should be included in public finances. At the same time, according to the reproductive and distribution concepts, the finances of socialism did not include personal finances and the finances of non-productive enterprises and organizations, which included all institutions of healthcare, education, culture and sports. Thus, the reproductive concept also did not cover the entire subject area of ​​finance.

legal concept

The legal concept of Soviet finance, authored by Ernest Alexandrovich Voznesensky (Leningrad school), is based on one of the differences with which Western financial theorists marked the boundary between public finance and private sector finance. K. Schoup describes it this way: “The main difference between the distribution system of the government and the family, church, or other non-profit institution lies in the degree of impartiality of the rules according to which the government distributes its services and distributes the burden of covering expenses ... Equity means that (1) this set rules, for example tax law, established by decree, ... and (2) rules supported by sanctions (fines or prison terms) equally applicable to all lawbreakers, whoever they may be. ... In contrast to this regime, the family distributes among its members the goods consumed in the household according to informal and often changing criteria. By analogy with K. Shop, E. A. Voznesensky’s argument was formulated in relation to Soviet finance:

1) Financial relations, including taxes, are value (monetary); 2) Only those monetary relations are financial, which form their system, regulated by the state.

"Thus, the finances of the socialist states are a system of monetary relations that have an imperative form." According to E. A. Voznesensky, the system of socialist finance covered almost the entire subject area of ​​finance, since not only the sphere of distribution of public goods, as was the case in capitalist countries, but also the sphere of production together with non-production was subjected to strict imperative regulation in the USSR. The only exception was a part of monetary relations attributed by the Western scientific school to the concept of "personal finance": are included in the sphere of finance, with the exception, of course, of paying taxes, insurance payments, repayment of loans, etc. At the same time, purchases of manufactured goods and food (also D-T relationship and T-D), carried out budget organizations, E. A. Voznesensky ranked among the finances of the socialist state on the grounds that public procurement was subject to strict regulation.

In the educational literature on finance published after the collapse of the USSR into post-Soviet space, mainly, the main theoretical concepts of Soviet (public) finances continue to be stated. At the same time, the definitions of the category of finance, as a rule, repeat (without the adjectives “Soviet” and “socialist”) the definitions from Soviet textbooks. An exception is the concept developed by S. P. Zakharchenkov, according to which finance is a purposeful movement of the exchange value of capital in monetary terms.

Basic financial concepts

Financial activity (activity) is the application of a set of techniques and procedures that individuals and organizations use to manage their finances. Particularly important is the difference between income and expenses and the risk assessment of investments.

If income exceeds expenses (that is, there is a surplus), then the difference can be lent at interest or invested in some business or in the purchase of property. This is the point financial activities- if there are free financial resources, then they should be put into action in order to bring additional income.

If expenses exceed income (that is, there is a deficit), then the missing financial resources must be replenished. This can be done by obtaining a loan, or by issuing stocks or bonds on the stock exchange. IN modern world the borrower does not need to go and look for a lender himself - you can go to a bank or stock exchange, and the appropriate financial institution will find a lender for a certain commission. Or vice versa - for the lender will find a borrower. In fact, the whole essence of banking and exchange activities is to effectively connect those in need with those who have free funds.

As mentioned earlier, the bank serves as an intermediary between borrowers and lenders. In practice, it looks like this: the lender (depositor) comes and deposits his free money in a bank account (so-called deposit) in order to receive interest from his deposit. Then the borrower comes to the bank to get a loan. The bank lends the depositor's money to the borrower at interest, and this interest includes both the income for the depositor and the income for the bank itself, plus some interest to insure the risk of default on the loan.

The exchange also serves the purpose of connecting creditors and borrowers, but, unlike a bank, it does not have its own “financial buffer”, that is, it cannot put money on deposit until a borrower appears. The exchange can connect the lender and the borrower only in real time. The bank, on the other hand, can set aside funds, that is, the lender (depositor) can come to the bank today, and the borrower (who wants to take the depositor's money on credit) can only appear in a month.

In addition, the exchange trades deposits and loans in an indirect form. Those wishing to take a loan issues stocks or bonds on the stock exchange. The share represents the owner's share in the borrowing company, and, therefore, also serves as collateral for the loan. A bond is also a type of loan, but, unlike a share, it does not give ownership of the borrowing company, although it may provide for some kind of separate collateral. Stocks and bonds can also pay interest (called dividends). If a dividend is not paid on a share, then it is assumed that the share will grow in price, and the creditor who bought the share will be able to receive the profit due to him only by selling the share that has risen in price.

Functions of Finance

1. Distribution- through finance, the gross domestic income is distributed and redistributed, thanks to which the funds are at the disposal of the state, the municipality;
2. Control- lies in their ability to track the entire course of the distribution process, as well as the spending for the intended purpose of funds coming from the federal budget;
3. Regulatory- state intervention in the process of reproduction through finances (taxes, government loans etc.). The state influences the reproductive process through the financing of individual enterprises, the implementation of tax policy;
4. Stabilizing- providing citizens with stable economic and social conditions.

Financial services

Income

Financial decisions in the revenue side of a personal budget are often not complex - the main thing is not to lose sight of any possible source of income. The main principle: "capital must bring capital". If there are free means of production, then they should be put into action. If there is an unused property, then it must be leased out. If some free resource is not able to generate income and is not profitable investment(that is, does not increase in value by itself), then it must be sold, and the money must be turned into investments.

Advice like "change your job to a better paying one" has nothing to do with finance. Finance is what is available and what can be operated. The main task of financial management is to manage the available finances most effectively (that is, with the greatest benefit). Under current conditions credit money, getting additional financial resources in the form of a loan does not seem to be a problem.

To avoid unwanted sequesters, the revenue side of the budget should not include possible income if the probability of receiving it is less than 90%. At the same time, if unplanned income still appears, then the ways of its disposal must be determined promptly. Another important point to remember when planning income is that pensions and compensations must be calculated based on the most profitable possible scheme.

Expenses

As part of the budget planning process, more complex financial decisions have to be made, especially with regard to the expenditure side of the budget. There are many important tips here:

• First, when calculating the long-term budget period(6 months or more), do not forget about inflation. If something costs a certain amount at the beginning of the year, this does not mean that at the end of the year the price will remain the same. Use an inflation forecast from reputable sources and build that forecast into your spending plan.
• Build in the costs of the expected (pre-announced) increase in prices for products and services. If it is announced that then electricity will rise in price by a certain percentage, then this percentage should be reflected in the budget.
• Of course, you should always look for the cheapest products and services available on the market. Otherwise, the basic principle of a market economy is competition- won't work at all. But this does not mean at all that the quality of the products can be neglected. Do not budget for low-quality or questionable products and services. You need to choose the cheapest, but only from an acceptable quality category. This is especially true for food, medical and financial services.
• Loans must be repaid, if only in order not to spoil your "credit history" and be able to get a loan in the future. Therefore, loan contributions should have a high priority in the list of expenses.
• Risk insurance is an indispensable part of competent financial management. It is recommended that at least 5% (and preferably 8-12%) of all personal expenses be directed to insurance of various types of risks. This is a common global practice.
• Finding a legal scheme to reduce taxes paid is a common method of cutting costs in the West. If there is even the slightest opportunity to reduce tax deductions, then it must certainly be used. If the amount of taxes is very high (and the possible savings can pay for the services of a specialist), then it is advisable to seek the advice of a financial advisor (or even hire a personal accountant).
• It is recommended to set aside 7-10% of income in the pension fund. A pension fund is, in principle, an ordinary long-term deposit, but with minimal risk.
• Investment is the area of ​​the most difficult financial solutions. It is often said that you even need to have a “special flair” to make good decisions in this area. However, if we discard any hoaxes, then we can say that a good investment decision is the product of a deep, comprehensive, emotionless analysis of the investment market.

Enterprise Finance

The main task of corporate finance is the financial support of the organization's activities. It is also important to find the optimal balance between business profitability and financial risks. To meet the current financial needs of the business, short-term loans are usually taken. bank loans. To meet long-term needs, bonds or stocks without a fixed dividend are more often issued. Such strategic decisions about loans or issuance of shares ultimately determine the very capital structure of the organization.

Another important aspect of corporate finance is investment decisions, that is, decisions on investing available free funds. After all, an investment is an investment of a free asset with the hope that it will increase in value over time. Investment management is the most important aspect of finance at any level, and the corporate level is no exception. Before making an investment decision, you need to analyze the following factors:

• relationship between: target - time period - inflation - risk aversion - taxes
• choice between active and passive hedging strategy
• assessment of the effectiveness of the investment portfolio

Financial management in organizations is in many ways similar to accounting. But Accounting deals with accounting for already completed transactions (and, therefore, accounting for "historical" financial information). And financial management looks to the future and analyzes the effectiveness and plans for future financial transactions.

State finances

Taxes and fees

financial economics

Financial economics is an industry economics, which studies the relationship between financial quantities, such as: price, added value, share capital, etc. Financial economics especially focuses on studying the impact of real economic indicators on financial indicators. Here are the main areas of research:

• Valuation - determining the real value of an asset
  • How high are the risks of this asset? (finding the right discount rates)
  • What cash flow can the asset generate? (discounted cash flows)
  • What is the market price of a similar asset? (relative score)
  • Do financial flows depend on some other asset or event? (derived estimate)
• Financial markets and instruments
  • Goods
  • Stock
  • Bonds
  • Currency market instruments
  • Derivative securities
• Financial institutions and regulations

see also

Financial institutions and organizations

• Moscow Interbank Currency Exchange (MICEX)

The largest news agencies of financial information

Notes

1. Finance- article from the Great Soviet Encyclopedia
2. Finance / Raizberg B. A., Lozovsky L. Sh., Starodubtseva E. B. Modern economic dictionary. - 5th ed., revised. and additional - M.: INFRA-M, 2006. - 495 p. - (Library of dictionaries "INFRA-M").
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