Keywords: market relations, circulation of financial instruments, stock market, digital system.
The development of the country's economy on a programmatic basis and the implementation of market-economic reforms are the result of the economic strategy implemented at a high pace as a result of the creative reforms policy of the President.
As a result of institutional reforms, the creation and continuous improvement of the securities market that meets international requirements is one of the important conditions for the transfer of national economic market relations. Since these cases are somewhat innovative for our country, information about the norms and characteristics of the circulation of financial instruments in the securities market is of great interest not only to market participants, but also to students, researchers and the general public.
Full provision of financial resources for the investment project in re-equipment of the technological structure of enterprise production is one of the important issues. The correct choice of the method of attracting an additional financial resource through a bank loan or the sale of securities increases the probability of successful and timely implementation of the investment project. In the event that it is proven appropriate based on the study of all the influencing factors, the enterprise prefers to meet the need for financial resources by changing its organizational structure to a joint-stock company.
Joint-stock companies of various types can be created on a voluntary basis under the influence of providing free and favorable conditions in the production system and market space, as well as increasing market competition. Among them are newly created ones and those that appear through the restructuring of previously operating enterprises. For example, businesses and entrepreneurs who dream of introducing their products to foreign markets on the basis of increasing their competitiveness need investment funds. Such demands also arise in economically and financially sound enterprises, which are known for their product in the domestic market. For this purpose, the parties can create large-scale production and service associations of new organizational structures, such as various holdings, corporations, open joint-stock companies of various types, based on the agreement on voluntary pooling of their capital reserves.
The stock market of developed countries is dominated by institutional investors. Financial institutions that undertake the functions of placing stocks and bonds are members of the stock exchange and act on behalf of the large number of private owners who trust it to transact securities. The authorized state agency strictly controls the activities of joint-stock companies at all stages related to legal formalization. In order to participate in the stock market, a company must comply with a number of rules defined by law and applicable to all participants.
The state provides great support for the establishment of the stock exchange in the country. Among the first issuers, the government carried out the issuance of its treasury bonds and their first placement in 2015. Today, it is important to encourage economic entities and people (investors) to make full use of the financial instruments and services of the securities market on a selective basis with the balanced and full activation of the financial market structures.
In the National Program of Socio-Economic Development of Turkmenistan in 2022–2052 during the Revival of the New Era of a Stable State: «Based on international experience, the creation of an electronic trading platform, mobile applications and websites will facilitate investing in securities, trading and It is another clear evidence of the importance of digital system — electronic trading platforms in all securities for the wide availability of market information.
In recent years, the development of the stock market has focused on the development of the electronic form of trading. Natioanal securities’ trading is part of public trading, where prices are determined by the interaction of market participants. Advances in computer technology have made it possible to replace the physical interaction of participants in securities trading with a connection to a single computer center where transactions are conducted according to established market rules.
Today, emerging stock exchanges in all countries are initially created in the form of electronic exchanges, which connect experts with each other with the help of electronic networks. Electronic trading systems are software and technological solutions that automate the preparation and execution of electronic auctions and other competitive trades.
E-commerce sites are a simple and convenient way to use an e-commerce system. Advances in digital technologies and communication innovations are enabling the widespread dissemination of information about price changes and trade, and the emergence of new forms of trading systems. These innovations eliminate the need for direct human involvement in trading rooms or telephone systems. New technology lowers barriers to entry for exporters and new competitors to structure the new trading system. As a result, advances in communication technology are making trades faster and market information available to more participants.
E-commerce platform is a set of software and tools that provide organized technical and information solutions to connect the seller and the buyer through electronic channels. Today, almost all stock exchanges are in electronic form, and the role of these systems in the execution of negotiations at the international level is limitless. Electronic trading systems are widely used in stock exchanges. An electronic stock exchange is an online trading platform for securities and other assets. All these are conducted remotely without being inside the stock exchange building. Trading on electronic exchanges facilitates the work of traders and brokers, increases the volume of orders, reduces the duration of operations, and increases the speed of execution of orders.
Electronic exchanges enable transactions to be carried out at any time of the day with the necessary tools, provide high availability for market participation and guarantee a high level of confidentiality of transaction information.
In accordance with implementation of the National Program, the certain set of measures has been planned to further expand the market format of public private partnership, the development of various forms of ownership through the privatization of the state-owned enterprises, the creation of joint-stock companies, further development of the domestic security market and stock exchange, and their phased implementation is underway. These measures are intended to become a significant contribution to further strengthening of the economic power of Turkmenistan.
References:
- The Program «Revival of a new epoch of the powerful state: New National Program for Socioeconomic Development of Turkmenistan in 2022–2052», — Ashgabat, Turkmen State Publishing Service, 2022
- International Scientific Journal « Innovative Science» — № 1–1/2017 ISSN2410–6070
- https://agb.com.tm.
