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]

Read more

Summary

24 May 2021

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.

Introduction
Results
Conclusions

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.