Abstract
The stock indices are investigated as indicators of stock market activity. It is proved that the stock market is one of the most attractive instruments for investing. It is accepted that an open stock market in a country characterized by a stable, strong economy, encourages the attraction of foreign investors. It is noted that indicators of the Ukrainian stock market such as the capitalization and the PFTS stock index (First Stock Trading System), as a result of the inadequate exchange rate prices for the real state of the issuing companies and the economy of the state, can’t be as representative, especially when compared with foreign markets. It has been outlined that the development of the domestic stock market is restrained by the imperfection of legislative and regulatory regulation of the market participants, the lack of optimality of the market infrastructure, the lack of a fully functioning, fully functioning national depository system. The introduction of a new stock index describing the state of business activity of a separate sector of the market is proposed, which will serve as a benchmark for the formation and optimization of investment strategy of investors, will promote transparency of the Ukrainian securities market.
Highlights
The cyclical development and constant volatility of the stock market necessitate a systematic study of its condition, which is impossible without the use of arrays of statistical information, which serves as the basis for calculating aggregate indicators
An important place among them is occupied by indicators of the business activity of the securities market – stock indexes
Stock Exchange Index is an indicator that defines the consolidated course of a particular group of securities and is used to determine the current state and dynamics of the stock market (Bezvukh, 2016, August, p. 626)
Summary
The cyclical development and constant volatility of the stock market necessitate a systematic study of its condition, which is impossible without the use of arrays of statistical information, which serves as the basis for calculating aggregate indicators. An important place among them is occupied by indicators of the business activity of the securities market – stock indexes. Stock indices are calculated by exchanges, information agencies, international investment banks and other infrastructural entities. In Ukraine stock indices are an important tool for domestic and foreign investors as part of the overall financial information for their investment decisions. The stock exchange is an example of an efficient market where the interests of producers, consumers, financiers, speculators, banks, companies and organizations are met on a daily basis
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