Theoretical principles of the formation and development of the stock market of Ukraine

Abstract

The article's purpose is to consider the theoretical foundations of the formation and development of the stock market of Ukraine in modern conditions. The report provides a comprehensive study and analysis of the building and development of the stock market of Ukraine. The stock market allows for attracting capital and effectively distributing it for the development of the national economy. The development of the stock market increases the level of participation of companies in attracting additional funds for their investment programs by placing their securities on the market, and a developed stock market plays a crucial role in financing the economy compared to the banking sector. Therefore, on the stock market, enterprises with real potential can attract financial resources to implement a promising project. It was determined that the primary goal of the functioning and development of the stock market in Ukraine should be attracting financial resources to direct them into the real economy to renew production. The functioning of the market is based on specific relations between the participants of the market space, which are simultaneously part of the market and its driving force. It is shown that the stock market is the most important mechanism that ensures the effective functioning of the country's entire economy. Thus, the stock market creates conditions for a free, albeit regulated, transfer of capital to the most efficient sectors of the economy. The current state, problems, and prospects of Ukraine's stock market development are studied. The stock market of Ukraine, in terms of the scale of its development and the ratio to the total volume of financial assets, is not significant. According to the analysis results, it was established that the volume of exchange contracts with securities on trade organizers in 2018-2021 had positive dynamics. Still, according to the results of trading during January-December 2022, compared to the data of the same period in 2021, the volume of trading in financial instruments decreased by 291.36 billion hryvnias. The decrease in the book of trades in financial instruments in 2022 was influenced by the start of military operations. It has been established that the modern stock market is an effective mechanism for trading financial assets. Therefore, it needs to ensure financial and economic stability, contributing to attracting investment flows. Keywords: stock market, securities, issuers, stock exchanges, financial resources, financial investments.