Market entities are individuals or special groups that are specially created from people who are called to jointly carry out activities in a particular economic sphere. In the modern world, they usually appear in the form of a variety of organizational structures (enterprises, corporations, firms, etc.). Market entities are also state organizations, subject to the establishment of rules for them, approaching the standards of existence in the economic sphere of legal entities and individuals. Contractual relations (sale, lease, hiring), which are carried out in strict accordance with a written agreement between the buyer and seller, allow various infrastructures to enter into certain economic relations.
Various actors of the market, entering into direct interaction with each other, are included in the circuit. It represents a constant movement of income and expenses, money supply, various resources and goods in the economic sphere.
Consumer demand is generated by households. They constantly need consumer goods and household services. Calculation of money is made in this case at the expense of income derived from the provision of enterprises with labor, capital, land, as well as other production factors. Upon receipt, organizations include them in their technological cycle and sell finished goods to households.
Products, household appliances, clothing and various services complete their movement. After that, the economic cycle resumes. And this movement is continuous. Indicators of cash and commodity flows are determined for the specified period. For example, this period of time can serve as a year. The numerical expression of the goods available for sale and the monetary equivalent of home property is a stock. Annual production of goods - in a stream.
The main economic indicator for the country is gross domestic product. It represents the monetary value of goods and services produced during the year. The composition of the national product includes only that which has passed the full production cycle and is ready for use. Semi-finished products and various intermediate blanks are not included in this list.
However, market entities are not only enterprises and households. The state and financial organizations (most of them are represented by banks) take part in the economic cycle. These four market players are the main ones. The state collects taxes and incurs certain types of costs. It purchases products and makes wages from its budget.
The subjects of the financial market - banks, perform a function whose main focus is the redistribution of cash flows. They are the main participants in economic relations using special tools. They are financial assets. Instruments used by participants in this market segment are divided by the terms of circulation into:
- short-term (turnaround time up to twelve months);
- long-term (circulation period of more than a year);
- perpetual.
An important group of existing infrastructures is the securities market participants. These traditionally include issuers, investors, stock intermediaries, as well as government agencies that exercise control and regulation. The subjects of the securities market are organizations or individuals that carry out operations on the sale and purchase of these documents or carry out settlements or turnover with their participation.