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114-485: On 27 June 1996, MICEX Settlement House was incorporated, which was a credit organization that provided settlement (bank account) services, including cash settlement services for trades in the financial market. MICEX Settlement House's primary business was to provide settlement services in the stock exchange markets operated by the MICEX Group. National Depository Center (NDC) was incorporated on 21 January 1997. NDC

228-583: A Platanus occidentalis (buttonwood tree) in New York City , as 24 stockbrokers signed the Buttonwood Agreement , agreeing to trade five securities under that buttonwood tree. Bombay Stock Exchange was started by Premchand Roychand in 1875. While BSE Limited is now synonymous with Dalal Street, it was not always so. In the 1850s, five stock brokers gathered together under a Banyan tree in front of Mumbai Town Hall, where Horniman Circle

342-402: A security on a particular stock exchange, the security must be listed there. Usually, there is a central location for record keeping, but trade is increasingly less linked to a physical place as modern markets use electronic communication networks , which give them advantages of increased speed and reduced cost of transactions. Trade on an exchange is restricted to brokers who are members of

456-508: A simplified tax system for agriculture . A string of amendments in July 2002 resulted in present-day simplified tax system for small businesses , imputed tax on retail operations , and redesigned the taxation of private and corporate motor vehicles. On January 1, 2004 the VAT rate decreased from 20 percent to 18 percent. In 2007–2008 Putin, both as president and later as prime minister, promoted

570-607: A withholding agent when paying out income on Russian equity or debt securities. On 1 October 2013, NSD started acting as a trade repository for all trade types (such as repo contracts, OTC derivative contracts, and other contract types entered into under a master agreement, as defined in Article 51.5 (paragraph 6) of the Russian Federal Law "On the Securities Market"). NSD's Trade Repository: By

684-877: A basket of securities was 3,727 in 2013, and 8,858 in 2014. The value of Bank of Russia's repo transactions with a basket of securities amounted to RUB 14.04 trillion in 2013, and RUB 57.22 trillion in 2014. NSD acts as the National Numbering Agency for Russia and the Substitute Numbering Agency for the CIS countries and as such assigns ISINs and CFIs to securities or other financial instruments issued or registered in Russia or other CIS countries. In 2014, NSD's net income under IFRS amounted to RUB 3.31 bln, and NSD's revenues under IFRS reached RUB 6.62 bln. As at 31 December 2014,

798-531: A bill imposing a 13% progressive wealth tax for those earning up to 2.4 million rubles ($ 27,500) annually, a 22% income tax on those earning above 50 million rubles ($ 573,000), and a 5% increase on corporate taxes. Prior to enactment of the Code, Russian tax legislation was based on a patchwork of laws enacted in the last years of the Soviet Union (notably, the 1990 laws on personal and corporate income taxes),

912-557: A building near the Town Hall until 1928. The present site near Horniman Circle was acquired by the exchange in 1928, and a building was constructed and occupied in 1930. The street on which the site is located came to be called Dalal Street in Hindi (meaning "Broker Street") due to the location of the exchange. On 31 August 1957, the BSE became the first stock exchange to be recognized by

1026-583: A decrease in the VAT rate to 12 percent by 2010; Putin's allies Sergey Chemezov and Minister of Economics Elvira Nabiullina support this proposal. Minister of Finance Alexey Kudrin opposed the change due to the need to finance the Pension Fund and the rearmament of Russian troops . On January 1, 2005 Russia abolished the tax on advertising—the last remaining provision from the early 1990s. The government slowly but regularly increases excise taxes on alcohol , tobacco , gasoline and motor oil;

1140-518: A flat UST was initiated in July 2008 by INSOR , Dmitry Medvedev 's think tank and further detailed in Putin's proposals made October 1, 2008. Workplace accident insurance, enacted later, is not part of UST or the Tax Code. Each employer must contribute to group accident insurance. The rate varies between 0.2 percent and 8.5 percent, depending on the type of business. The rate for trading companies

1254-490: A gross basis and cash being settled on a net basis (DVP-2); or with net settlement of both securities and cash (DVP-3); or outside clearing sessions with settlement on a trade by trade basis (DVP-1). The DVP settlement mechanism allowed clients to settle trades both in Russian rubles and—until 2022—non-Russian currencies (USD or Euro ). NSD offers the opportunity to settle trades on a DVP basis using correspondent accounts with

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1368-600: A group of financial corporations announced plans to open a members owned exchange, MEMX , an ownership structure similar to the mutual organizations of earlier exchanges. In the 19th century, exchanges were opened to trade forward contracts on commodities . Exchange traded forward contracts are called futures contracts . These commodity markets later started offering future contracts on other products, such as interest rates and shares, as well as options contracts. They are now generally known as futures exchanges . Lists : Russian Tax Code The tax system of

1482-495: A life), and education and medical expenses. Deductions require documentation and are subject to limitations. Tax returns are mandatory for registered entrepreneurs and professionals (lawyers, notaries , etc.), sellers of personal assets and recipients of other income. Out of 10.4 million registered residents of Moscow, only 94 thousand filed tax 2006 returns and 105 thousand filed for 2007. State pensions and alimony are normally not taxable, as well as bank interest (unless it exceeds

1596-461: A major source of fraud, while law-abiding exporters have to resort to court action to get the refund. VAT exemption extends to targeted companies in medicine, pharmaceutical industry , education, public housing and transportation; to private homes and apartments; to traditional banking and insurance services; to sales of exclusive copyright on software , integrated circuit topologies and similar high technology contracts. VAT ineligibility

1710-509: A report by the World Federation of Exchanges (WFE) , stock exchanges contribute to economic growth by enabling companies to access long-term capital, thereby fostering innovation and job creation. While stock exchanges are not designed to be platforms for the redistribution of wealth, they play a significant role in allowing both casual and professional stock investors to partake in the wealth generated by profitable businesses. This

1824-519: A result, NDC became the largest Russian settlement depository by value of assets in custody, and the only Russian settlement depository that covered all types of Russian equity and debt securities. On 3 November 2010, an entry was made in the Unified State Register of Legal Entities concerning the reorganization of MICEX Settlement House through merger with NDC, which resulted in the establishment of National Settlement Depository (NSD),

1938-497: A separate layer of tax environment that augments the Code. Double taxation of dividends is completely eliminated when a Russian shareholder owns at least 50 percent of Russian or foreign subsidiary paying dividends (excluding foreign entities located in tax haven jurisdictions) for at least 365 days and the investment is worth more than 500 million roubles. All other dividends received by Russian shareholders are subject to 13 percent tax, up from 9% before 2015. Excise tax

2052-425: A special procedure for defining the elements of taxation. These types of taxes shall be classified as special tax regimes : Distinction between federal , regional and local taxes depends on the level of legislature that is entitled to establish rates for that kind of tax. Federal rates are explicitly set by the Tax Code; regional tax rates are limited by the Code but set by regional laws. Federal taxes such as

2166-409: A stock exchange, a company is required to adhere to a set of rules and regulations established by the exchange itself. These regulations serve as a framework for corporate governance, financial transparency, and accountability, thereby ensuring that listed companies operate in a manner that is conducive to investor confidence and market stability. By imposing these standards, stock exchanges contribute to

2280-592: A typical cigarette pack will reach 15–30 percent, which is less than its European counterpart. Since 2007, cigarettes have been taxed based on a percentage of manufacturers' suggested retail price (MSRP). This approach made MSRP mandatory and quickly led to government-induced retail price fixing . Unified social tax ( UST ) is accrued on all employer-to-employee payments which are deductible for profit tax purposes; non-deductible payments like dividends or charity are not subject to UST. Pensions, severance pay , and travel expenses are not taxable. The schedule

2394-404: A unified social tax (UST). In 2001 collection of personal income tax increased by 26 percent (adjusted for inflation ). Tax compliance improved; an estimated one third of previously untaxed jobs were added to the tax rolls, although economists cannot separate the effects of tax rates from those of general economic recovery and improved law enforcement. A commitment to abolish sales-based taxes

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2508-514: A unique organization for Russia. On 6 November 2012, NSD was assigned the central securities depository (CSD) status by Russian Federal Financial Markets Service 's Order No. 12-2761/pz-i dated 6 November 2012. In accordance with Article 22 (paragraph 5) of the Russian CSD Law, Russian CSD status may be granted to one organization only. In 2014, following an analysis of all financial market infrastructure organizations operating in Russia,

2622-408: A variety of settlement models, including DVP-1, DVP-2, and DVP-3. Delivery versus payment or DVP is a form of settlement for securities that involves simultaneous delivery of securities by the seller to the buyer and cash by the buyer to the seller. The service is based on NSD's clearing platform that allows for making DVP transactions in more than one clearing session, with securities being settled on

2736-418: A wide and varied scope of owners, companies generally tend to improve management standards and efficiency to satisfy the demands of these shareholders and the more stringent rules for public corporations imposed by public stock exchanges and the government. This improvement can be attributed in some cases to the price mechanism exerted through shares of stock, wherein the price of the stock falls when management

2850-410: Is 0.2 percent and for transportation companies 0.7 percent. Personal income tax is levied individually normally at 13 percent. There is no joint filing . Employers withhold income taxes, thus the taxpayers whose only taxable income was paid by employer do not need to file a tax return—except to claim a refund for itemized deductions . The most important deductions are for home purchase (once

2964-580: Is a very common charge by tax authorities. An April 2004 ruling by the Constitutional Court of Russia that increased corporate tax liabilities was revoked by Supreme Arbitrage Court in December 2004. The Federal Tax Service resolved the same case one year later. Tax on mineral extraction is the second largest source of federal revenue regulated by the Code; most of it is paid by oil companies. Tax rates for oil (per metric ton) are set by

3078-441: Is achieved through the distribution of dividends and the potential for stock price increases leading to capital gains. As a result, individuals who invest in stocks have the opportunity to share in the prosperity of successful companies, effectively participating in a form of wealth redistribution through their investment activities. Thus, while not the primary purpose of stock exchanges, the opportunity for individuals to benefit from

3192-433: Is calculated as the difference of VAT on sales (at the earliest of cash receipt or shipment of goods on credit) and input VAT on accrued costs. VAT paid to suppliers that has not yet materialized into services or goods cannot be credited against current tax liability. VAT paid to suppliers on export sales is refunded in full if the seller receives payment for exports within 6 months of shipment. Refund of export VAT has become

3306-414: Is considered poor (making the firm vulnerable to a takeover by new management) or rises when management is doing well (making the firm less vulnerable to a takeover). In addition, publicly listed shares are subject to greater transparency so that investors can make informed decisions about a purchase. Consequently, it is alleged that public companies (companies that are owned by shareholders who are members of

3420-626: Is explicitly authorized by the Code but exists as a standalone law. The Government of Russia presented the first official draft of Part One to the State Duma in February 1996, four months prior to the 1996 presidential election ; Part Two was presented in April 1997. Deputy Minister of Finance Sergey Shatalov promoted the bill. After more than a year of refinements, the Duma passed the bill in

3534-403: Is levied on manufacturers of raw and refined alcohol , alcoholic drinks stronger than 1.5 percent by volume, including beer ; gasoline and diesel fuel , motor oils; passenger cars and motorcycles with engines in excess of 150 h.p. ; tobacco products. The Code specifies strict licensing rules for oil refineries and alcohol distillers . Rates increased until 2010; by 2010, excise taxes of

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3648-748: Is little consensus among scholars as to when corporate stock was first traded. Some view the key event as the Dutch East India Company 's founding in 1602, while others point to much earlier developments (Bruges, Antwerp in 1531 and in Lyon in 1548). The first book in history of securities exchange, the Confusion of Confusions, was written by the Dutch-Jewish trader Joseph de la Vega and the Amsterdam Stock Exchange

3762-534: Is non-refundable and compulsory, obtained by transferring their monetary resources. The purpose of taxation is to fund governmental and municipal activities, leveraging rights of ownership, economic jurisdiction, or operational management. Whereas a term levy could be understood as a mandatory payment required from both organizations and individuals. It is a prerequisite for state authorities and local government bodies to perform specific legally significant actions, such as granting rights or issuing permits (licenses) to

3876-497: Is not limitless (it was approximately $ 15 million in 2001 for a biotechnology company). Another alternative source of cash for a private company is a corporate partner, usually an established multinational company, which provides capital for the smaller company in return for marketing rights, patent rights, or equity. Corporate partnerships have been used successfully in a large number of cases. When people draw their savings and invest in shares (through an initial public offering or

3990-580: Is now situated. A decade later, the brokers moved their location to another leafy setting, this time under banyan trees at the junction of Meadows Street and what was then called Esplanade Road, now Mahatma Gandhi Road. With a rapid increase in the number of brokers, they had to shift places repeatedly. At last, in 1874, the brokers found a permanent location, the one that they could call their own. The brokers group became an official organization known as "The Native Share & Stock Brokers Association" in 1875. The Bombay Stock Exchange continued to operate out of

4104-670: Is often considered the oldest "modern" securities market in the world. On the other hand, economist Ulrike Malmendier of the University of California at Berkeley argues that a share market existed as far back as ancient Rome , that derives from Etruscan "Argentari". In the Roman Republic , which existed for centuries before the Empire was founded, there were societates publicanorum , organizations of contractors or leaseholders who performed temple-building and other services for

4218-415: Is often the most important component of a stock market . Supply and demand in stock markets are driven by various factors that, as in all free markets , affect the price of stocks (see stock valuation ). There is usually no obligation for stock to be issued through the stock exchange itself, nor must stock be subsequently traded on an exchange. Such trading may be off exchange or over-the-counter . This

4332-475: Is open to both the large and small stock investors as minimum investment amounts are minimal. Therefore, the stock exchange provides the opportunity for small investors to own shares of the same companies as large investors. Governments at various levels may decide to borrow money to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known as bonds . These bonds can be raised through

4446-472: Is regressive: annual income up to 280,000 roubles is taxed at 26 percent; marginal rate for income above 600,000 roubles is 2 percent. Rates in agriculture and in special high technology parks are lower. Note that a significant part of mandatory contributions to Pension Fund is not included in UST. Pension Fund deficits have caused calls to increase UST rates or switch from regressive to flat rates. A proposal for

4560-598: Is the Moscow Exchange , holding a 99.997% interest in NSD's share capital. The remaining shares are owned by a number of banks and securities market participants. On 30 June 2011, the Shareholders Agreement with respect to NSD was signed, which secured for NSD's customers the right to participate in managing NSD and ensured a balance between the interests of NSD's majority and minority shareholders. Under

4674-636: Is the primary tax law for the Russian Federation . The Code was created, adopted and implemented in three stages. The first part, enacted July 31, 1998, also referred to as the General Part , regulates relationships among taxpayers, tax agents, tax-collecting authorities and legislators, tax audit procedures, resolution of disputes, and enforcement of law. The second part, enacted on August 5, 2001, defines specific taxes, rates, payment schedules, and detailed procedures for tax calculations. It

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4788-523: Is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global securities market. Stock exchanges also serve an economic function in providing liquidity to shareholders in providing an efficient means of disposing of shares. In recent years, as the ease and speed of exchanging stocks over digital platforms has increased, volatility in the day-to-day market has increased, too. The beginnings of lending were in Italy in

4902-546: The Alternext , CAC Small , SDAX , TecDAX ). Alternative investment funds refer to funds that include hedge funds, venture capital, private equity, angel funds, real estate, commodities, collectibles, structured products , etc. Alternative investment funds are an alternative to traditional investment options (stocks, bonds, and cash). Companies have also raised significant amounts of capital through R&D limited partnerships . Tax law changes that were enacted in 1987 in

5016-585: The Bank for International Settlements and the International Organization of Securities Commissions (CPMI-IOSCO) and recommended by the Bank of Russia for observance by Russian important payment systems. In 2014, the number of cash transfers to or from clients' bank accounts held with NSD was 998.39 thousand; the total amount of RUB cash transfers to or from clients' bank accounts held with NSD

5130-476: The Bank of Russia recognized NSD as a systemically important central securities depository, systemically important settlement depository, and systemically important trade repository. On 25 December 2012, the NSD Payment System was recognized by the Bank of Russia as a systemically important payment system , and on 16 July 2012 – as a nationally important payment system. NSD's majority shareholder

5244-697: The Indian Government under the Securities Contracts Regulation Act. Construction of the present building, the Phiroze Jeejeebhoy Towers at Dalal Street , Fort area , began in the late 1970s and was completed and occupied by the BSE in 1980. Initially named the BSE Towers , the name of the building was changed soon after occupation, in memory of Sir Phiroze Jamshedji Jeejeebhoy , chairman of

5358-633: The São Paulo Stock Exchange (2007). The Shenzhen Stock Exchange and Shanghai Stock Exchange can be characterized as quasi-state institutions insofar as they were created by government bodies in China and their leading personnel are directly appointed by the China Securities Regulatory Commission . Another example is Tashkent Stock Exchange established in 1994, three years after the collapse of

5472-767: The seasoned equity offering of an already listed company), it usually leads to rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to help companies' management boards finance their organizations. This may promote business activity with benefits for several economic sectors such as agriculture, commerce and industry, resulting in stronger economic growth and higher productivity levels of firms. Companies view acquisitions as an opportunity to expand product lines , increase distribution channels, hedge against volatility , increase their market share , or acquire other necessary business assets . A takeover bid or mergers and acquisitions through

5586-544: The stock indexes can be an indicator of the general trend in the economy. Stock exchanges offer employment opportunities to various individuals such as jobbers and other members who perform activities within the stock exchange. This makes the stock exchange a source of employment, not only for investors but also for the members and their employees. The diverse range of roles within the stock exchange, including trading, analysis, compliance, and administrative functions, creates an ecosystem of employment opportunities that support

5700-508: The stock market is one of the simplest and most common ways for a company to grow by acquisition or fusion. By going public and listing on a stock exchange, companies gain access to a broader pool of investors, which can provide the necessary funds for expansion, research and development, and other growth initiatives. Additionally, being listed on a stock exchange enhances a company's visibility and credibility, making it more attractive to potential partners, customers, and employees. According to

5814-615: The 1991 law "On the framework of the tax system in the Russian Federation" and subsequent federal, regional and local laws and executive decrees; the underlying Soviet rules of accounting and business practices remained largely unchanged. Taxation in 1992–1998 was substantially decentralized: regional and local authorities were entitled to invent their own taxes, or could, on the contrary, create tax havens for " domestic off-shores ". In his February, 1995 presidential address Boris Yeltsin proposed to re-centralize and streamline

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5928-622: The Americas were overblown. In London, Parliament passed the Bubble Act , which stated that only royally chartered companies could issue public shares. In Paris, Law was stripped of office and fled the country. Stock trading was more limited and subdued in subsequent decades. Yet the market survived, and by the 1790s shares were being traded in the young United States. On May 17, 1792, the New York Stock Exchange opened under

6042-620: The BSE share which is traded in NSE only closed with ₹999. Stock exchanges have multiple roles in the economy. This may include the following: Besides the borrowing capacity provided to an individual or firm by the banking system , in the form of credit or a loan, a stock exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public. Capital intensive companies, particularly high tech companies, typically need to raise high volumes of capital in their early stages. For this reason,

6156-452: The BSE since 1966, following his death. In 1986, the BSE developed the S&;P BSE SENSEX index, giving the BSE a means to measure the overall performance of the exchange. In 2000, the BSE used this index to open its derivatives market, trading S&P BSE SENSEX futures contracts. The development of S&P BSE SENSEX options along with equity derivatives followed in 2001 and 2002, expanding

6270-505: The BSE's trading platform. Historically an open outcry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system developed by Cmc ltd . in 1995. It took the exchange only 50 days to make this transition. This automated, screen-based trading platform called BSE On-Line Trading (BOLT) had a capacity of 8 million orders per day. Now BSE has raised capital by issuing shares and as on 3 May 2017

6384-664: The Bank of Russia via the Real Time Gross Settlement System (BESP). With the launch of the electronic matching service, NSD's clients were provided with the opportunity to receive information on the availability of potentially matching instructions, i.e., unmatched instructions that differ from each in one data field . NSD says that the Hold & Release functionality offered by NSD contributes to greater reliability of settlements and their control by clients. The number of Bank of Russia's repo transactions with

6498-514: The Code as a fixed percentage of their market value (from 3.8 percent for potassium salts to 17.5 percent for gas condensate ) or, in case of natural gas, at a fixed amount per unit volume. The tax is paid monthly based on physically extracted tonnage, not sales. A related but separate Water tax is paid by organizations physically extracting surface or subterranean fresh water, as well as by hydroelectric powerplants and timber rafting loggers. From 1 January 2024 exported crude and processed oil

6612-807: The Code by decree if the Duma failed to quickly enact it. On July 16, 1998 the State Duma discarded budget-balancing proposals, but approved the third, and final, hearing on Part One; the next day it was stamped by the Federation Council and finally signed into law by the President on July 31, 1998 (to become effective on January 1, 1999 with certain exclusions). It was officially published in Rossiyskaya Gazeta on August 6. Anti-crisis actions failed, and on August 17, 1998 Russia defaulted on its government bonds . While Part One

6726-678: The Code dealing with corporate profits—was enacted in August 2001 (effective January 1, 2002). The tax rate was decreased to 24 percent for all taxpayers. Dividend taxation decreased to 6 percent (15 percent for non-residents). At the same time, the Code abolished tax breaks, broadening the tax base. Chapter 25 also instituted a special set of accounting rules for profit tax purposes; businesses could choose either to harmonize their statutory and tax accounting or maintain two sets of books. Gaps between statutory and tax accounting persisted, precluding complete harmonization. In December 2001 legislators created

6840-553: The ISIN system is used worldwide by funds, companies, and governments. However, when poor financial, ethical or managerial records become public, stock investors tend to lose money as the stock and the company tend to lose value. In the stock exchanges, shareholders of underperforming firms are often penalized by significant share price decline, and they tend as well to dismiss incompetent management teams. As opposed to other businesses that require huge capital outlay, investing in shares

6954-537: The NSD did not have in place arrangements to alert non-Russian regulators to certain information, and did not have in place certain information-sharing with non-Russian CSD regulators on an automatic basis. It noted as well that NSD had not been in contact with non-Russian relevant regulatory authorities, such as those in the US and Europe. Since 2014, in accordance with the Russian Tax Code , NSD has been acting as

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7068-481: The President, at the same time incorporating ideas from the competing drafts. On April 16, 1998 the Duma finally chose the Government draft over the alternatives with a 312 to 18 vote. Enactment of the Code was hastened by the imminent 1998 Russian financial crisis . Sergei Kiriyenko , appointed Prime Minister in April 1998, included the Code in the government's anti-crisis package. Yeltsin threatened to impose

7182-429: The Russian Federation ( Russian : налоговая система Российской Федерации ) is a complex of relationships between fiscal authorities and taxpayers in the field of all existing taxes and fees. It implies continuous communication of all its members and related objects: payers; legislative framework; oversight authorities; types of mandatory payments. The Russian Tax Code ( Russian : Налоговый кодекс Российской Федерации )

7296-400: The Russian government. Stock exchange A stock exchange , securities exchange , or bourse is an exchange where stockbrokers and traders can buy and sell securities , such as shares of stock , bonds and other financial instruments . Stock exchanges may also provide facilities for the issue and redemption of such securities and instruments and capital events including

7410-416: The Shareholders Agreement, up to five major customers of NSD may become its shareholders every year, thus becoming entitled to participate in managing the company. The Chairman of NSD's Executive Board is Eddie Astanin . The Chairperson of NSD's Supervisory Board is Bella Zlatkis. NSD is the central securities depository in the Russian stock market, and provides services with respect to securities both in

7524-678: The Soviet Union, mainly state-owned but has a form of a public corporation ( joint-stock company ). Korea Exchange (KRX) owns 25% less one share of the Tashkent Stock Exchange. In 2018, there were 15 licensed stock exchanges in the United States, of which 13 actively traded securities. All of these exchanges were owned by three publicly traded multinational companies, Intercontinental Exchange , Nasdaq, Inc. , and Cboe Global Markets , except one, IEX . In 2019,

7638-515: The United States changed the tax deductibility of investments in R&;D limited partnerships. In order for a partnership to be of interest to investors today, the cash on cash return must be high enough to entice investors. A general source of capital for startup companies has been venture capital . This source remains largely available today, but the maximum statistical amount that the venture company firms in aggregate will invest in any one company

7752-488: The book described a market that was sophisticated but also prone to excesses, and de la Vega offered advice to his readers on such topics as the unpredictability of market shifts and the importance of patience in investment. In England, the Dutch King William III sought to modernize the kingdom's finances to pay for its wars, and thus the first government bonds were issued in 1693 and the Bank of England

7866-412: The call to curtail "new techniques" of tax evasion and "regional self-financing". He stated that the forthcoming enactment of the Code was only a start, that the government-sponsored draft was incomplete and that the proposed rates were excessive. The only tax law enacted in this period and still effective in 2008 is the individual property tax (enacted in 1991, with amendments). Individual property tax

7980-591: The capacity of the CSD under Russian Federal Law No. 414-FZ dated 7 December 2011 "On the Central Securities Depository", and in the capacity of a nominee holder of other Russian and foreign equity or debt securities. NSD provides services for the safekeeping of global certificates and depository recordkeeping of 100% of Russian federal loan bond ( OFZ ) issues, and 99% of Russian corporate and regional (sub-federal or municipal) bond issues. In 2014,

8094-479: The company has demonstrated credibility and potential from successful outcomes: clinical trials, market research, patent registrations, etc. This shift in market expectations has led to an increased reliance on private equity and venture capital funding in the early stages of high-tech companies. This is quite different from the situation of the 1990s to early-2000s period, when a number of companies (particularly Internet boom and biotechnology companies) went public in

8208-614: The current Code provides a detailed plan for raising the rates until 2010 fiscal year. In the wake of the 2008 Russian financial crisis , September 18, 2008, the Russian Ministry of Finance declared short-term tax changes: As it is going to be discussed in the upcoming paragraphs, it is needed to define clearly the word tax and levy . According to the Russian Tax Code, a tax is a mandatory payment collected from both organizations and individuals. This payment

8322-558: The end of 2014, the number of Trade Repository clients reached 1,130 market participants who registered, in aggregate, 138,000 reports on master agreements and trades. As a systemically important payment system , the NSD Payment System was assessed by the Bank of Russia for observance of the international standards, namely the Principles for Financial Market Infrastructures issued by the Committee on Payment and Settlement Systems of

8436-400: The exchange. In recent years, various other trading venues such as electronic communication networks, alternative trading systems and " dark pools " have taken much of the trading activity away from traditional stock exchanges. Initial public offerings of stocks and bonds to investors is done in the primary market and subsequent trading is done in the secondary market . A stock exchange

8550-423: The first hearing (due process requires three stages, or hearings) on July 19, 1997. In June–October the Duma accumulated over 4,500 proposed amendments to the bill, making further progress impractical. In October 1997 the Duma and Government clashed over the federal budget for 1998 fiscal year , and the Government recalled the bill to appease its adversaries. When this stage ended, the Duma refused to come back to

8664-416: The framework established by the Code. Taxes or levies not listed explicitly by the Code or enacted in violation of its specific provisions are deemed illegal and void. The Russian tax system tends to use moderate flat or regressive tax rates. It is highly centralized for a federal state and relies heavily on proceeds from oil and natural gas corporations, who themselves are mostly state owned. In 2006

8778-441: The general public and trade shares on public exchanges) tend to have better management records than privately held companies (those companies where shares are not publicly traded, often owned by the company founders, their families and heirs, or otherwise by a small group of investors). Despite this claim, some well-documented cases are known where it is alleged that there has been considerable slippage in corporate governance on

8892-551: The government. One such service was the feeding of geese on the Capitoline Hill as a reward to the birds after their honking warned of a Gallic invasion in 390 B.C. Participants in such organizations had partes or shares, a concept mentioned various times by the statesman and orator Cicero . In one speech, Cicero mentions "shares that had a very high price at the time". Such evidence, in Malmendier's view, suggests

9006-555: The government; its formula refers to world market prices (same for all domestic producers) and a "depletion factor", specific to each oil field. The latter has been regularly criticized as a source of corruption and unfair competitive advantage. New developments may be exempt for a time, companies extracting nickel, copper, and platinum-group metals in the Krasnoyarsk region were given a rate set at zero from 1 January 2026 to 1 January 2038. Rates for other mineral resources are set in

9120-566: The instruments were tradable, with fluctuating values based on an organization's success. The societas declined into obscurity in the time of the emperors, as most of their services were taken over by direct agents of the state. Tradable bonds as a commonly used type of security were a more recent innovation, spearheaded by the Italian city-states of the late medieval and early Renaissance periods. Joseph de la Vega , also known as Joseph Penso de la Vega and by other variations of his name,

9234-661: The land's cadastral plot which is calculated by a special formula) and vehicle tax (which is linked to the vehicle's engine power). Most small businesses are eligible for simplified taxation and can choose one of the following taxes: income tax (6 percent) or profits tax (35 percent) or unified agricultural tax (6 percent, farmers only) or tax on imputed income (calculated by a special formula, certain companies only). Corporate taxes for medium and large businesses include profits tax (20 percent), value added tax (20 percent), property tax (0-2 percent) and some other taxes like water tax and mineral tax . President Putin signed into law in 2024,

9348-475: The large international securities depositories Euroclear and Clearstream gained full access to the Russian securities market, thus providing non-Russian companies and investment funds with investment opportunities. In 2014, in compliance with the FATCA requirements, NSD was registered with the U.S. Internal Revenue Service and was assigned a Global Intermediary Identification Number. NSD says it meets all of

9462-442: The late Middle Ages. In the 14th century, Venetian lenders would carry slates with information on the various issues for sale and meet with clients, much like a broker does today. Venetian merchants introduced the principle of exchanging debts between moneylenders ; a lender looking to unload a high-risk, high-interest loan might exchange it for a different loan with another lender. These lenders also bought government debt issues. As

9576-439: The level of legislature that is entitled to establish rates for that kind of tax. Federal rates are explicitly set by the Tax Code; regional tax rates are limited by the Code but set by regional laws; local tax rates are established by the Tax Code and by normative legal acts of representative bodies of municipalities concerning taxes and are compulsorily payable in the territories of the relevant municipalities. Federal taxes such as

9690-445: The major stock exchanges have demutualized , where the members sell their shares in an initial public offering . In this way the mutual organization becomes a corporation, with shares that are listed on a stock exchange. Examples are Australian Securities Exchange (1998), Euronext (merged with New York Stock Exchange), NASDAQ (2002), Bursa Malaysia (2004), the New York Stock Exchange (2005), Bolsas y Mercados Españoles , and

9804-468: The most prominent stock exchanges around the world in the total absence of sales, earnings, or any type of well-documented promising outcome. Though it is not as common, it still happens that highly speculative and financially unpredictable hi-tech startups are listed for the first time in a major stock exchange. Additionally, there are smaller, specialized entry markets for these kind of companies with stock indexes tracking their performance (examples include

9918-621: The natural evolution of their business continued, the lenders began to sell debt issues to the first individual investors. The Venetians were the leaders in the field and the first to start trading securities from other governments, yet did not embark on private trade with India. Nor did the Italians connect on land with the Chinese Silk Road . Along the potential overland trade route, Holy Roman Emperor Frederick II repulsed advances by Mongol Batu Kahn ( Golden Horde ) in 1241. There

10032-485: The old bill; Yury Luzhkov , major opponent of centralized tax collection, declared that "the tax code is already dead. It stinks". The Duma restarted the process, inviting competing drafts to be filed by January 31, 1998. By the deadline the Duma had received ten alternatives, as well as the new government version; this time sponsored by Minister of Finance Mikhail Zadornov and his deputy Mikhail Motorin . They made it clear that any alternative draft would face veto by

10146-417: The operations and functions of the exchange. Additionally, the stock exchange's role in facilitating capital formation and investment in businesses also indirectly contributes to job creation and economic growth, making it a significant player in the employment landscape. The stock exchange plays a role in regulating companies by exerting a significant influence on their management practices. To be listed on

10260-628: The overall integrity and reliability of the financial markets, fostering an environment where companies are held accountable for their actions and decisions, ultimately benefiting both investors and the broader economy. Each stock exchange imposes its own listing requirements upon companies that want to be listed on that exchange. Such conditions may include minimum number of shares outstanding, minimum market capitalization, and minimum annual income. The listing requirements imposed by some stock exchanges include: Stock exchanges originated as mutual organizations , owned by its member stockbrokers. However,

10374-873: The part of some public companies, particularly in the cases of accounting scandals . The policies that led to the dot-com bubble in the late 1990s and the subprime mortgage crisis in 2007–08 are also examples of corporate mismanagement. The mismanagement of companies such as Pets.com (2000), Enron (2001), One.Tel (2001), Sunbeam Products (2001), Webvan (2001), Adelphia Communications Corporation (2002), MCI WorldCom (2002), Parmalat (2003), American International Group (2008), Bear Stearns (2008), Lehman Brothers (2008), General Motors (2009) and Satyam Computer Services (2009) all received plenty of media attention. Many banks and companies worldwide utilize securities identification numbers ( ISIN ) to identify, uniquely, their stocks, bonds and other securities. Adding an ISIN code helps to distinctly identify securities and

10488-656: The payers of the levy. In Russia, these three kind of taxes and levies are established: federal, regional and local taxes. There are also three types of tax systems: progressive , regressive , and proportional . Since 2021, Russia has been using a progressive (two-tier) tax system. Russia implemented a progressive tax with rates of 13% or 15% for those earning over 5 million rubles a year. The following shall be classified as federal taxes and levies : The following shall be classified as regional taxes : The following shall be classified as local taxes : Distinction between federal , regional and local taxes depends on

10602-466: The payment of income and dividends . Securities traded on a stock exchange include stock issued by listed companies , unit trusts , derivatives , pooled investment products and bonds. Stock exchanges often function as "continuous auction" markets with buyers and sellers consummating transactions via open outcry at a central location such as the floor of the exchange or by using an electronic system to process financial transactions. To be able to trade

10716-409: The personal income tax may forwarded to regional governments; corporate profit taxes are split into federal and regional shares defined by the Code. VAT is the largest source of federal revenue (32 percent in 2008). VAT on imports (13 percent of federal revenue) is 20 percent as of January 1, 2019 (10 percent on selected foodstuffs) prior to release from the customs warehouse. VAT on domestic goods

10830-506: The personal income tax may forwarded to regional governments; corporate profit taxes are split into federal and regional shares defined by the Code. Other type of tax which is effective in Russia is special tax regime. It should be established by the Code and shall be applied in the cases and according to the procedure which are laid down in this Code and other acts of tax and levy legislation. In addition, it might provide an exemption from obligation to pay certain taxes or levies and to describe

10944-412: The principal when the bonds mature. At the stock exchange, share prices rise and decreases depending, largely, on economic forces. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability and growth. A recession , depression , or financial crisis could eventually lead to a stock market crash . Therefore, the movement of share prices and in general of

11058-439: The public market provided by the stock exchanges has been one of the most important funding sources for many capital intensive startups . In the 1990s and early 2000s, hi-tech listed companies experienced a boom and bust in the world's major stock exchanges. Since then, it has been much more demanding for the high-tech entrepreneur to take his/her company public, unless either the company is already generating sales and earnings, or

11172-452: The requirements to "eligible securities depositories" and satisfies the criteria set out by Rule 17f-7 of the U.S. Investment Company Act of 1940 . The Bank for International Settlements noted in 2015 that though the Bank of Russia has recommended that CSDs observe the "Principles for financial market infrastructures: Disclosure framework and assessment methodology," there was in fact no legal requirement that they do so. It also noted that

11286-440: The stock exchange whereby members of the public buy them, thus loaning money to the government. The issuance of such bonds can obviate, in the short term, direct taxation of citizens to finance development—though by securing such bonds with the full faith and credit of the government instead of with collateral, the government must eventually tax citizens or otherwise raise additional funds to make any regular coupon payments and refund

11400-470: The success of businesses can be seen as a form of wealth redistribution within the financial markets. Both casual and professional stock investors , as large as institutional investors or as small as an ordinary middle-class family , through dividends and stock price increases that may result in capital gains , share in the wealth of profitable businesses. Unprofitable and troubled businesses may result in capital losses for shareholders. By having

11514-518: The tax burden on oil companies exceeded 45 percent of net sales (compared to 12 percent in construction and 16.5 percent in telecommunications ). Rates for oil-related taxes and tariffs, unlike regular taxes, are set not by the Tax Code but by government decree. The Russian Ministry of Finance estimated that revenues regulated by the Tax Code accounted for 68 percent of federal revenue in 2008 fiscal year , rising to 73 percent in 2010. Individuals pay an income tax (13 percent), land tax (0.3 percent of

11628-437: The tax system through a unified Tax Code. Yeltsin declared that the Code's objective was to promote investments in manufacturing, while at the same time fully collecting taxes, and specifically demanded abolition of arbitrary tax preferences and tax evasion . He admitted that the state had no clearly formulated approaches to important taxation problems—these had to be resolved in 1995–1996. One year later, Yeltsin reiterated

11742-445: The value of securities held in securities accounts with NSD was RUB 24.94 trillion, which was 14% higher than as at 31 December 2013 (RUB 21.8 trillion). The value of foreign securities held in NSD's clients' securities accounts exceeded RUB 2.7 trillion. In June 2022, the NSD custodied 70 trillion roubles ($ 1.12 trillion) worth of client assets, including 9 trillion roubles of foreign securities such as Eurobonds linked to

11856-447: The years following enactment of Chapter 25 , and as of August, 2008 practically all business expenses are fully deductible. The Code retains a principal statement that deductible expenses must be "economically justified and properly evidenced with documents". The tax authorities manage the specifics. Taxpayers resolve disputes through court litigation; resolutions of upper-tier Arbitrage Courts, clarifying gray areas of tax accounting, form

11970-512: Was RUB 298.06 trillion; and the total amount of foreign currency cash transfers to or from clients' bank accounts held with NSD was equivalent to RUB 9.62 trillion. NSD offers collateral management services for tri-party repo transactions with the Bank of Russia or the Russian Federal Treasury. Trades are entered not with an individual security, but rather with a basket of securities. To clear trades, NSD applies

12084-410: Was acting in effect as France's central banker. Investors snapped up shares in both, and whatever else was available. In 1720, at the height of the mania, there was even an offering of "a company for carrying out an undertaking of great advantage, but nobody to know what it is". By the end of that same year, share prices had started collapsing, as it became clear that expectations of imminent wealth from

12198-481: Was added into the MET regime as export duty fell to zero. Corporate profit tax ( CPT ) is the largest source of regional revenues. The rate for 2009 is 20 percent on pre-tax profits, 3 percent to the federal budget and 17 percent to regional budgets. The rate decreased from 24 percent effective in 2001–2008 in the wake of the 2008 Russian financial crisis . Expense deductibility limitations were gradually eliminated in

12312-401: Was an Amsterdam trader from a Spanish Jewish family and a prolific writer as well as a successful businessman in 17th-century Amsterdam. His 1688 book Confusion of Confusions explained the workings of the city's stock market . It was the earliest book about stock trading and inner workings of a stock market, taking the form of a dialogue between a merchant, a shareholder and a philosopher,

12426-482: Was established to serve as the principal securities depository in the government securities market, and started acting in such capacity in March 1998. The same year, NDC started providing services for corporate, sub-federal, and municipal securities . NDC gained the leading position in the Russian debt securities market, and then started growing the scope of transactions with shares, investment units, and Eurobonds . As

12540-400: Was instrumental in re-designing day-to-day relationships between taxpayers and the state, it did not address specific taxes; thus, in 1999–2000 taxpayers still paid multiple taxes with the old rates. Part Two, implemented under Vladimir Putin (enacted in August 2000, effective January 1, 2001) promulgated a flat 13 percent personal income tax rate, and replaced various social contributions with

12654-653: Was posting regular lists of stock and commodity prices. Those lists mark the beginning of the London Stock Exchange . One of history's greatest financial bubbles occurred around 1720. At the center of it were the South Sea Company , set up in 1711 to conduct English trade with South America, and the Mississippi Company , focused on commerce with France's Louisiana colony and touted by transplanted Scottish financier John Law , who

12768-425: Was reflected in the abolition of the municipal housing tax (2000) and, eventually, the road tax and retail sales tax (2003). To offset the resulting drop in municipal revenue, Putin temporarily increased corporate profit tax rates for 2001 to 35 percent (43 percent for banks); the framework of profit taxation had yet to be redefined. The second, and probably most important, stage of Putin's tax reforms— Chapter 25 of

12882-480: Was set up the following year. Soon thereafter, English joint-stock companies began going public. London's first stockbrokers, however, were barred from the old commercial center known as the Royal Exchange, reportedly because of their rude manners. Instead, the new trade was conducted from coffee houses along Exchange Alley . By 1698, a broker named John Castaing, operating out of Jonathan's Coffee House ,

12996-420: Was significantly amended in 2001–2003 with additions like the new corporate profits tax section and the new simplified tax system for small business . The Code is subject to regular changes which are affected through federal laws. The Code is designed as a complete national system for federal, regional and local taxes but excludes customs tariffs . Rules and rates of regional and local taxation must conform to

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