1. State.
2. Household.
3. Commercial firms.
4. Financial intermediaries.
Cash flow is between these spheres of financial excess segments of the economy to its scarce financial sector case in point can be a tax payment to the state of the business organizations, financial intermediaries and households.
But The opposite situation, when the financial sectors of scarce channel funds into financial surplus. Examples of such processes is to provide concessional lending from the state in favor of commercial firms or households.
The funds can be redistributed within a single sector, but such processes are generally not have a significant impact on the market because the cash flows in this case absorbed by mutual principle. Example of this situation would be beneficial lending between commercial firms and financial intermediaries.
Next, we consider the mechanism of each of the main sectors of the economy.
State
State economic sector is a key borrower of funds. The main budget lines are covered by the following sources:
• Taxes and fees;
• proceeds from the privatization of state property and the sale of other assets;
• borrowings from domestic and foreign financial markets.
Commercial firms
Commercial companies also act as major borrowers who use credit to meet short-term tactical goals and long-term business - purposes. That is why these companies are forced to borrow funds in all available markets, including the money and capital markets. The most common means of raising equity issue of securities in the form of stocks and bonds.
Households
This sector has been a key provider of financial resources to the market, as it is in it has enormous weight savings of individuals. All savings conventionally divided into two types:
• savings consumer nature - designed to achieve short-term sales targets;
• long-term savings - aimed at making a profit in the distant future through the use of certain investment vehicles.
Financial intermediaries
This category has a key role in the global financial sector. The main function of this sector of the economy - the accumulation of small private investors into powerful investment resources to be placed on the world markets. Through the work of qualified private investors willing to trust money to such organizations due to their high reliability and stability of attractive dividends.
Financial intermediaries can be divided into three groups:
1. Deposit types - commercial banks and credit institutions.
2. Contract - such as insurance - insurance companies and pension funds.
3. Investment type - various funds, accumulating funds from private investors to conduct profitable operations active in the financial markets.