FINANCIAL MARKETS AND ISSUES OF IMPROVEMENT OF THEIR ACTIVITIES

Аннотация

This article is devoted to the topic “Financial markets and issues of improvement of their activities” and analyzes the main functions, structure of financial markets and their place in the economy. The article examines ways to improve the efficiency of financial markets, ensure security for investors and consumers, as well as improve market performance by introducing financial innovation. The article also covers changes in global financial markets, digital transformation, and the impact of fintech technologies. The legislative and regulatory mechanisms necessary to ensure the stability of financial markets are analyzed, as well as international experiences. Keywords: financial markets, investors, consumers, financial innovation, global financial markets, digital transformation, fintech technologies. Introduction. Financial markets are one of the important components of the economy and play an important role in the allocation of resources, the exchange of financial instruments and the promotion of economic growth. Financial markets, in principle, fulfill two main functions: the collection of capital and its distribution. The main functions of financial markets include:  Financial markets play an important role in raising capital from investors and making it available to entities seeking finance, such as businesses or the state. Through this process, investments are made, new projects are opened and the growth of the economy is ensured. Выпуск журнала №-26 Часть–9_Май –2025 114 MODERN EDUCATION AND DEVELOPMENT  Financial markets distribute capital through various financial assets. These assets include shares, bonds, and other financial instruments [1]. Each investor can choose assets that match their financial goals, which will help diversify risks.  Through financial markets, the prices of assets can be set. These prices are formed on the basis of supply and demand and indicate the state of the economy. Price changes affect investor decisions, and this in turn affects the economy.  Financial markets provide risk management opportunities for investors. Derivatives, such as options and futures, can help reduce investors ' risks.  Financial markets provide the information needed by investors. Through this information, investors can conduct a decision-making process more efficiently. Financial markets consist of several main departments: 1. Money market-trading of short-term financial assets is carried out. This market is mainly trading bonds and other short-term financial instruments for less than 1 year. 2. Capital market-designed for the sale of long-term financial instruments. This market sells shares and long-term bonds. 3. Trading between currencies of different countries is carried out. This market is important in global trade and economy. 4. Designed for trading options, futures and other derivative instruments. There are risk management and speculation opportunities in this market [2]. Financial markets perform a number of important functions in the economy:  Financial markets provide economic growth by attracting investment. It provides the necessary sources of finance for the opening of new businesses and the expansion of existing businesses.  The financial markets will help to effectively allocate resources. They indicate which sectors should be invested in the economy.  The correct allocation of resources through financial markets increases the stability of the economy of the OECD. Sustainable financial markets improve the overall health of the economy. Выпуск журнала №-26 Часть–9_Май –2025 115 MODERN EDUCATION AND DEVELOPMENT  The foreign exchange market plays an important role in stimulating international trade, as it allows the exchange of currencies of different states. Thus, financial markets are the main mechanisms necessary for the effective functioning and development of the economy [3]. Their functional structure and interactions ensure the stability and growth of the economy. Improving the efficiency of financial markets, ensuring security for investors and consumers, as well as the introduction of financial innovation, are important for the stability and growth of the economy. A number of strategies can be considered on these issues. To increase the efficiency of financial markets, it is necessary, first of all, to ensure the transparency of the market. Transparency facilitates the decision-making process of investors and increases the confidence of market participants. For this:  It is necessary to make it possible to easily obtain financial information, for example, reports of companies, prices and other statistics. This information provides transparency and helps investors make the best decisions.  The regulators of the financial markets of the OECD must introduce effective and modern legislation. It plays an important role in protecting investors and consumers. For example, it is necessary to create powerful control mechanisms to prevent financial fraud. Ensuring security