Abstract
In the article analyzes the development of the domestic stock market. It is substantiated that crop futures are a derivative financial instrument on the stock exchange, which provides for the obligation of its seller or buyer to periodically transfer sums of money to the opposite party depending on changes in the market price of grain, and (or) the obligation delivery of grain on time. It is determined that only under the conditions of joint efforts on the part of the state, the exchange community, participants of the agrarian market that will allow bringing the exchange commodity market closer to civilized bases.
Highlights
The first definitions of futures first appeared in foreign economic publications, as the history of modern futures trading began in the Midwestern United States in the early 1800’s.A large number of works by both domestic and foreign scientists are devoted to the issue of the functionality and purpose of grain futures on the stock market of agricultural products.Research purpose
This opinion is very relevant today, as securities have long ceased to be issued on paper and their purchase and sale takes place in seconds. This definition emphasizes the peculiarities of the registration of futures on the exchange and the obligations of the buyer and seller, but does not reflect the fixation of the price of the asset
Having considered the existing definitions and properties of a futures contract, we came to the conclusion that the most complete disclosure of the essence of futures for agricultural crops is the following definition: Crop futures are a derivative financial instrument on the stock exchange, which provides for the obligation of its seller or buyer to periodically transfer amounts to the other party depending on changes in the market price of grain, and the occurrence of the obligation to supply grain in due time [8]
Summary
This work is licensed under a Creative Commons Attribution 4.0 International License. JUSTIFICATION OF THE ESSENCE, FUNCTIONS AND PURPOSE OF GRAIN FUTURE EXCHANGE MARKET OF AGRICULTURAL PRODUCTS Hrechaniuk L. M., Assistant of the Department of Administrative Management and Foreign Economic Activity, National university of life and environmental science of Ukraine, Kyiv, Ukraine ORCID ID: https://orcid.org/0000-0002-9909-5032 KEYWORDS exchange; stock market; futures; agricultural market; grain exchange; grain market; stock commodity market.
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