Professional Stock Research Articles

OPTIMIZATION AND FORECASTING OF A SECURITIES PORTFOLIO BASED ON MACHINE LEARNING METHODS

The article is devoted to the demonstration and analysis of the possibilities of connecting the Markowitz model, which is a classical model for forming a portfolio of securities, and forecasting methods based on machine learning data. The relevance of the chosen topic is justified by the fact that the use of machine learning methods makes it possible to simplify the activities of financial sector workers and the work of professional stock market players, as well as reduce the complexity of interpreting mathematical models and methods of their construction for private investors. The purpose of this work is to use machine learning methods to solve the problem of building an optimal securities portfolio and predicting its behavior. Tasks: - build a Markowitz model based on the selected data; - to build an optimal portfolio based on the proposed optimality criterion; - offer a time series forecast; - to assess the adequacy of the constructed model; - combine the Markowitz model, which belongs to the class of widely known classical models, with the construction of a prediction based on machine learning. Methods and models: machine learning methods are used in the work, the Markowitz model is built based on the selected data, then the Markowitz model is combined with the construction of a forecast based on machine learning. Research results: the optimal portfolio for AXP has been built and its forecast has been fulfilled. The formation of the portfolio was based on the Markowitz model. The data obtained were tested for adequacy and showed fairly good results. A portfolio was built, the optimality criterion of which is the ratio of average profitability and volatility of profitability (maximizing average profitability while minimizing its volatility). The Markowitz model, which belongs to the class of widely known classical models, was combined with the construction of a prediction based on machine learning.

Non-professional versus professional investors’ trust in financial analysts’ recommendations and influences on investments

PurposeThe paper aims to investigate differences in non-professional and professional stock investors’ trust in and tendency to follow financial analysts’ buy and sell recommendations.Design/methodology/approachOnline experiment conducted in Sweden in March 2022 comparing non-professional private investors (n = 80), professional investors (n = 33), and master students in finance (n = 28). Information was presented about four company stocks listed on the New York stock exchange. Two stocks were buy-recommended and two stocks sell-recommended by financial analysts. For one stock of each type, the recommendation was presented to participants. Dependent variables were predictions of the stock price after three months, ratings of confidence in the predictions and choices of holding, buying or selling the stock. Ratings were also made of the importance of presented stock-related information as well as trust in analysts’ skill and integrity.FindingsMore positive return predictions were made of buy-recommended than sell-recommended stocks. Non-professionals and to some degree finance students tended to trust financial analysts more than professional investors did and they were more influenced by the presentation of the buy recommendations. All groups made too optimistic return predictions, but the professionals were less confident in their predictions, more likely to sell the stocks and lost less on their investments.Originality/valueA new finding is that non-professional stock investors are more likely than professional stock investors to trust financial analysts and follow their recommendations. It suggests that financial analysts’ recommendations influence non-professional investors to take unmotivated investment risks. Non-professionals in the stock market should hence be advised to exercise more caution in following analysts’ recommendations.

Learning Subject-Aware Cropping by Outpainting Professional Photos

How to frame (or crop) a photo often depends on the image subject and its context; e.g., a human portrait. Recent works have defined the subject-aware image cropping task as a nuanced and practical version of image cropping. We propose a weakly-supervised approach (GenCrop) to learn what makes a high-quality, subject-aware crop from professional stock images. Unlike supervised prior work, GenCrop requires no new manual annotations beyond the existing stock image collection. The key challenge in learning from this data, however, is that the images are already cropped and we do not know what regions were removed. Our insight is to combine a library of stock images with a modern, pre-trained text-to-image diffusion model. The stock image collection provides diversity, and its images serve as pseudo-labels for a good crop. The text-image diffusion model is used to out-paint (i.e., outward inpainting) realistic uncropped images. Using this procedure, we are able to automatically generate a large dataset of cropped-uncropped training pairs to train a cropping model. Despite being weakly-supervised, GenCrop is competitive with state-of-the-art supervised methods and significantly better than comparable weakly-supervised baselines on quantitative and qualitative evaluation metrics.

РЕФОРМУВАННЯ КОРПОРАТИВНОГО УПРАВЛІННЯ ГІРНИЧОДОБУВНИХ ПІДПРИЄМСТВ

The article is devoted to the study of the peculiarities of reforming the corporate management of enterprises in the mining industry. Challenges facing the industry are indicated. The role of corporate management is disclosed, the principles of such management are summarized. The advantages of corporate governance policy are outlined. Among the advantages, the following are highlighted: the possibility of wider access to financing, ensuring the protection of investors, maintaining the stability of the company. It has been investigated that the Government has set the task of introducing and ensuring compliance with corporate governance standards at the ten largest state-owned enterprises ofUkraine. The largest company in the mining industry - JSC "Naftogaz of Ukraine" was chosen as the object of the study. Considered how the process of reforming corporate governance took place in this company. The key elements of proper corporate governance of NJSC "Naftogaz of Ukraine" are: availability of full-fledged and effective management bodies; clear division of powers; functioning of the internal control system; elimination of political influence; creation of equal market conditions with private companies. It was determined that the attention of international organizations was drawn to the reform of the company's corporate governance. Experts of the Organization for Economic Cooperation and Development implemented two important projectsthat contributed to the implementation of the reform. The implementation of the corporate governance reform in Naftogaz of Ukraine led to the following changes: changes were made to the Company's Charter, the Ownership Policy was approved, new members of the Supervisory Board were elected, and a new corporate strategy was announced. It was concluded that the initiated reform of improving corporate governance by business entities remains an important priority for Ukraine. The success of the reform will depend on: the construction of the stock market and the maximum approximation of Ukraine to world standards; creation of a centralized body for state property management; avoiding political influence on the activities of companies; availability of professional stock managers; strengthening of regulatory influence

Exchange Journalism from the Position of Behavioral Finance: Economic Thinking of a Stock Market Speculator in the Beginning of the 20th Century

Introduction. Modern financial theory still wonders the degree of behavioral factors influence on the financial assets pricing. We assume that it necessary to consider this problem within the framework of historical and economic science, since exchange prices are widely used in modern research as a historical source. Turning to the materials of professional stock exchange journalism, in this article we sought to determine how market participants described the pricing mechanism and how their market behavior were built in accordance with these analytical settings. Materials and Methods. We chose the book “Political, economic and financial issues of recent times” as our main source. That work includes analytical articles by I. P. Manus (1860–1918), a well-known stock speculator who made a millionth fortune on the Saint Petersburg Stock Exchange. Results. I. P. Manus’s articles demonstrate how the practice of economic analysis of financial markets combines a rational assessment of the financial results with taking into account “inefficient”, speculative price factors. In our source we trace the idea of uncertainty that cannot be overcome by formal analysis methods. All of that actualizes the need to use the methodology of behavioral finance when working with financial history materials. Discussion and Conclusion. We believe that it is not entirely correct for our material to draw a rigid methodological boundary between “behavioral” and “rational”. If we use the terminology of social history, it is much more effective to consider these concepts in their complex interaction, which forms a special “frame” of financial practice of the early 20th century.

A study on the comparison of technical indicators used in stock price prediction with the BAHP method

Savers want to direct their savings to investment areas where they can get maximum efficiency. This is the most basic feature that a rational investor should have. Stock investors also want to manage their investments with this thought. In this respect, investors conduct detailed research on the sector and stock they plan to invest in. Predictions regarding the possible price formation of the stock in the future is one of these studies. In the finance literature, there are many indicators, ratios, analyzes, indicators and oscillators developed for the future price prediction of the stock. In this study, technical indicators used by licensed professional stock investors were obtained by taking expert opinion. These indicators were conveyed to the experts again to get their opinions with the help of the fuzzy comparison matrix and the experts were asked to compare the variables. The data obtained were analyzed with the Fuzzy Analytical Hierarchy Process (FAHP) method and the technical indicators and ratios used by the experts were listed according to a certain hierarchy. As a result of the analysis, it has been determined that the most important ratio in the stock price estimation process is the MV/BV ratio. While EBIT is the second most important ratio in stock price prediction, P/E is the third most important indicator.Savers want to direct their savings to investment areas where they can get maximum efficiency. This is the most basic feature that a rational investor should have. Stock investors also want to manage their investments with this thought. In this respect, investors conduct detailed research on the sector and stock they plan to invest in. Predictions regarding the possible price formation of the stock in the future is one of these studies. In the finance literature, there are many indicators, ratios, analyzes, indicators and oscillators developed for the future price prediction of the stock. In this study, technical indicators used by licensed professional stock investors were obtained by taking expert opinion. These indicators were conveyed to the experts again to get their opinions with the help of the fuzzy comparison matrix and the experts were asked to compare the variables. The data obtained were analyzed with the Fuzzy Analytical Hierarchy Process (FAHP) method and the technical indicators and ratios used by the experts were listed according to a certain hierarchy. As a result of the analysis, it has been determined that the most important ratio in the stock price estimation process is the MV/BV ratio. While EBIT is the second most important ratio in stock price prediction, P/E is the third most important indicator.

Excess Volatility in Professional Stock Return Forecasts

Excess Volatility in Professional Stock Return Forecasts

Legal management and regulation of the activities of professional participants in the stock market of Ukraine

Purpose. To assess the effectiveness of legal management and regulation of professional participants based on the analysis of legislative, regulatory and legal documents that ensure the formation, regulation and prevention of illegal actions in the domestic stock market, as well as identify areas of cooperation with government agencies in stock market development and mediation. Methodology. In the process of research, general research methods and techniques were used, in particular: analysis and generalization to identify regulations governing the activities of professional stock market participants; analytical method to compare the effectiveness of cooperation of the National Securities and Stock Market Commission with anti-corruption organizations, synthesis to assess the completeness and effectiveness of existing legislation governing the activities of professional participants. Findings. The peculiarity of legal management and regulation of professional participants is determined; the classification mark of professional stock market participants and their activities (types of services) is formed in accordance with the National Commission on Securities and Stock Market, namely: investment firms, trade organizers (stock exchanges), clearing institutions, mortgage managers, depository institutions, companies with asset management. An analysis is performed of the effectiveness of certain laws, including the Law of Ukraine On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Terrorist Financing and Financing the Proliferation of Weapons of Mass Destruction, which reduced corruption and sanctions during 20172020 and the Law of Ukraine On licensing of economic activities, which is a lever in the field of regulation and maintenance of transparency of professional market participants, prevention of illegal actions. The mechanism of cooperation of professional participants with state bodies as a component of legal management on the basis of SMIDA activity is developed. Originality. It consists in defining the areas of legal management and regulation related to the activities of professional participants in the stock market and developing mechanisms for interaction of professional participants with government agencies based on transparency, information and competitiveness. Practical value. The proposed directions of cooperation and interaction of professional participants with government agencies, in particular SMIDA and NSSMC, as part of legal management and legal support, will optimize the standards of exchange activity and development of stock trading, reduce corruption and shadowing.

Stock Prediction Using Machine Learning Algorithms

In the recent times, the stock markets have emerged as one of the top investment destinations for individual and retail investors due to the lure of huge profits that are possible with stock investments compared to more traditional and conservative forms of investments such as bank deposits, real estate and gold. The stock markets unlike other forms of investment are highly dynamic due to the various variables involved in stock price determination and are complex to understand for a common investor. Individual and small-time investors have to generate a portfolio of common stocks to reduce the overall risk and generate reasonable returns on their investment. This phenomenon has given way too many individual and retail investors incurring huge losses because their decisions are based on speculation and not on sound technical grounds. While there are financial advisory firms and online tools where individual investors can get professional stock investment advice, the reliability of such investment advice in the recent past has been inconsistent and not meeting the rigor of quantitative and rational stock selection process. Many of such stock analysts and the tools mostly rely on short term technical indicators and are biased by the speculation in the market leading to huge variances in their predictions and leading to huge losses for individual investors. While the use of Artificial Intelligence (AI) and Machine Learning (ML) techniques is widely adopted in the financial domain, integration of AI/ML techniques with fundamental variables and long-term value investing is a lacking in this domain. Some of the stock portfolio tools available in the market use AI/ML techniques but are mostly built using technical indicators which makes them only suitable for general trend predictions, intraday trading and not suitable for long term value investing due to wide variances and reliability issues. The availability of a Financial Decision Support System which can help stock investors with reliable and accurate information for selecting stocks and creating an automated portfolio with detailed quantitative analysis is lacking. A Financial Decision Support System (DSS) that can establish a relationship between the fundamental financial variables and the stock prices that can VII automatically create a portfolio of premium stocks shall be of great utility to the individual investment community. As part of this thesis, the researcher has designed and developed a Financial Decision Support System (DSS) for selecting stocks and automatically creating portfolios with minimal inputs from the individual investors. The Financial DSS is based on a System Architecture combining the advantages of Artificial Intelligence (AI), Machine learning (ML) and Mathematical models. The design and development of the Financial DSS is based on the philosophy to combine various independent models and not rely on a single stock price model to increase the accuracy and reliability of the stock selections and increase the overall Return on Investment (ROI) of the stock portfolio. The Machine learning models are used to establish the relationship between fundamental financial variables and the price of the stock, a mathematical model is developed to calculate the intrinsic value of the stock taking in to account the full lifecycle of the stock which involves various phases and a comprehensive model to analyze the financial health of the stocks. The AI/ML stock models are independently trained using historical financial data and integrated with the overall Financial DSS. Finally, the Financial DSS tool with a graphical user interface is built integrating all the three models which shall be able to run on a general-purpose desktop or laptop. To reliably validate the Financial DSS, it has been subjected to wide variety of stocks in terms of market capitalization and industry segments. The Financial DSS is validated for its short term and long-term Return on Investment (ROI) using both historical and current real-time financial data. The researcher has reported that the accuracy of the AI/ML stock price models is greater than 90% and the overall ROI of the stock portfolios created by the Financial DSS is 61% for long term investments and 11.74% for short term investments. This system has the potential to help millions of individual investors who can make their financial decisions on stocks using this system for a fraction of cost paid to corporate financial consultants and value eventually may contribute to a more efficient financial system.

Investment Attractiveness of Capital Markets: Trends in De-Shadowing Business Deals

The article considers the issues of de-shadowing of investment agreements on the capital market, in particular, on the stock market of Ukraine. Peculiarities of investing in securities as financial assets and making financial investments with the use of securities are determined. Capital markets can develop as investment-attractive systems. Common schemes of non-transparent investment in the capital market of Ukraine are revealed — the use of securities to avoid taxation or the so-called «tax optimization» of business transactions and withdrawal of capital outside Ukraine; manipulation of the price of stock assets and the use of insider information in securities trading; issue and formation of authorized capital at the expense of technical securities; raider seizure of securities of enterprises with the use of illegal change of owners. The causal factor in the reproduction of the shadowing of capital is the existing economic and organizational and legal reasons that distinguish business in one, on the other — there are such motives as greed, the desire to get rich quick, the accumulation of initial capital by any means. This is the irrational investment behaviour of households and corporations. It has been determined that securities fraud is a common crime in the stock market. Fraud in securities is manifested in criminal offenses and civil law violations of shareholders’ rights. Insufficient efficiency of regulatory institutions to combat the shadow economy is one of the reasons for the spread of the latter. The growing role of state preventive regulation in levelling the risks of shadow capital turnover is revealed and substantiated. It is substantiated that the state, represented by regulatory authorities, should have expanded institutional and instrumental capabilities to prevent risks of financial destabilization. Such opportunities are achieved both by increasing the financial literacy of investors and prudent precautionary regulatory action. Foreign experience of de-shadowing the capital market and combating economic crime is analysed. It is determined that in foreign countries much attention is paid to de-shadowing the economy and combating economic crime. Significant work in this direction is preventive in nature. Thus the system of prevention of fictitious economic activity consists of the following structures: police bodies; specialized law enforcement agencies; tax services; customs services; financial intelligence agencies. Reducing the level of shadowing of the capital market of Ukraine will increase its investment attractiveness. This will have such positive consequences as: increasing the capitalization of professional stock market participants (institutional investors) and increasing their financial stability by increasing the size of authorized capital, increasing the market price of freely traded securities («free-float»); achievement / excess of the actual solvency margin over the previous settlement. Protected and legitimate assets of professional stock market participants will provide investment income on trusted assets at a level not lower than inflation.

АНАЛИЗ И ОЦЕНКА ЭФФЕКТИВНОСТИ ИНВЕСТИЦИОННЫХ СТРАТЕГИЙ НА СОВРЕМЕННОМ ФОНДОВОМ РЫНКЕ РОССИИ

The article analyzes modern investment strategies in the stock market in terms of their effectiveness. Recommendations are given for the trans- formation and further development of investment strategies in modern econo-mic conditions. The current state of the Russian stock market is considered. At present, the stock market plays an important role in the process of economic development and the redistribution of financial resources. Investment activity that stimulates business largely determines the pace of the development and economic growth of the country. The Russian stock market is in an active stage of development, there is a growing interest of investors in stock instruments as a means of stabilizing and increasing financial resources. That interest is fueled by the specifics of the Russian economy. At the same time, the structure of the stock market becomes more complex every year, being filled with an increasing number of various financial instruments. Making sound decisions about investing money in certain stock instruments, as well as determining the structure of a securities portfolio requires a comprehensive and in-depth analysis on the part of the investor. The most important condition for the implementation of the in- vestor’s desire to receive an income adequate to his ideas is his ability to calcu- late the risks accompanying investments in securities. The article also carried out a comparative analysis of modern investment strategies based on an inte- grated approach that combines elements of fundamental and technical analysis. It also developed and applied an algorithm for evaluating the effectiveness of investment strategies in terms of the ratio of profitability and risk parameters, as well as proposed a number of modifications of the considered investment strategies, taking into account the characteristics and specifics of the Russian stock market.The results were obtained and conclusions were made about the effectiveness of investment strategies, options for their modification, which are of significant practical importance both for professional stock market partici- pants involved in the development of various investment products, and for pri- vate investors who want to decide on the choice of the most optimal investment strategy in the Russian stock market.

Https://www.ijeast.com/papers/134-138,Tesma608,%20IJEAST.pdf

Time series data is an ordered set of data points, which are values of a variable at different points in time, spaced at equal intervals. In other words, time series represents values of a specific variable measured at a constant time frequency. An example is of temperature of a city measured at 11 AM every day for 30 consecutive days. Analysis of time series data to forecast and predict the future finds use across multiple industries. A very important application of time series analysis is to predict prices of stocks in the future. Stock markets are complicated financial structures where stocks of public companies are traded. Prices of stocks witness great deal of fluctuations and changes over time. Professional stock traders and investors analyze time series data to forecast prices of stocks in the future with reasonable accuracy, which helps them generate higher returns on their investments with minimal risk involvement. Stock prices are highly volatile and react very quickly to changes in the market. Time series forecasting is one technique that helps in developing a model that can accurately predict such drastic and quick changes. In our research, we have made an attempt to analyze the time series data of certain stocks from Indian stock market (NIFTY), using which we have developed a forecasting model to accurately and efficiently predict the prices of these stocks in the future.

DIRECTIONS OF OFFENSE PREVENTION IN THE STOCK MARKET OF UKRAINE

Abstract. The article considers the legislative and regulatory documents which outline the features of detecting offenses in the stock market of Ukraine. The main offenses in the domestic stock market have been formed, and the subjects, objects and types of sanctions for offenses have been considered. It is determined that the main body in the field of detection and prevention of stock market violations is the National Securities and Stock Market Commission (NSSMC), which considers cases of offenses, regulates the activities of issuers and financial intermediaries, prepares reports on stock market operations, carries out licensing of professional participants and provides cooperation with state institutions, state and local authorities in the field of crime prevention. An analysis of offenses in the stock market of Ukraine during 2017—2019 has been carried out. The main directions of stock market offenses prevention are outlined, namely: imposition of financial sanctions, revocation or suspension of licenses of professional participants, issuance of orders and resolutions, increase of fines in the stock market, prevention of price manipulation. Proposals were made to improve the activities of the Stock market infrastructure development agency, in particular to form a single complete and detailed base of issuers, professional participants, offenses, foreign investors and large securities holders. It is proposed to reduce violations in the stock market through active cooperation with the International Organization of Securities Commissions (IOSCO). In general, we can conclude that there is no critical situation in the field of offenses in the stock market of Ukraine, as evidenced by analytical studies.
 Keywords: offenses, stock market, license, issuer, professional market participants, National Securities and Stock Market Commission.
 JEL Classification G18, K22, K40, K49
 Formulas: 0; fig.: 4; tabl.: 0; bibl.: 16.

"Whither Roth Given Bailey"

"Whither Roth Given Bailey"1 Benjamin Schreier (bio) As a prefatory disclaimer, I should cop to seeing no reason to use my space here as an opportunity—that is, under a pretense to Olympian expertise—to summarize Philip Roth's career, provide an overview or appraisal of his literary output, and/or reprise some set of defining events of (or gossipy revelations about) his life. I take it as axiomatic—minority view though it may be—that scholarly reviews should tread elsewhere for their primary labor than the ground of synoptic recapitulation. And anyway, Bailey's biography has been/will be enough written about that other commentators can take that tack. Suffice it to say that I like Roth's work and perhaps more to the point find that the stance or positionality his books relentlessly adopt to be intellectually and ethically significant enough to be worth talking about. Moreover—again, in the interest of apologia more than anything else—I find the tension and indeed difference between Roth's literary work and the public circulation of his persona to be far more critically productive than aesthetically restrictive or morally adjudicatory. So there's that. I have rarely put much professional stock in biography; I don't find it intellectually stimulating, and I don't find the genre an important tool for the kind of literary thinking and scholarship I pursue. To be sure, I like the anecdotes—my favorite line in Bailey's book may be Roth's response to Irving Howe's tepid, pompous praise of Goodbye, Columbus and its critique of Jewish provinciality: "I figure fuck Howe anyway…It isn't my fault people aren't eating as much chopped liver as they used to" (172)—but publicly celebrating delight in wacky historical affect does not a vital intellectual program make. More generally, I consider literary biography as overly susceptible to serving an imperial form of thinking about literature, or as being a technology for refusing the imaginative agencies of writing (that is, as primarily something other than historical record) in the interest of an historical account-keeping of authors and works, a means to pursue a thinking about literature that's organized, fundamentally, by a historicist fetishism—biography being, at least in part, a proxy for literary history, a way of securing the figure of the author as a means to anchor what a scholar might want to say about literary works in [End Page 677] the presumptive socio/ethno/cultural bedrock of "history" (if not through the agency of authorial intention, then often enough through the bio-fantasy of authorship more generally). In fact, this imperial form of representative thinking is fully on display in the dominant modes of Jewish studies intellectuality, especially in the field's attitude toward literature. Jewish studies is a relentlessly and unapologetically historicist enterprise—and it has tended to approach Roth, and Jewish American literature more generally, as an historiographic instrument, signifying the sociological narrative of "breakthrough," the emergence of Jews out of the immigrant ghetto and into the mainstream of American social and cultural life. Certainly at the outset, but arguably throughout his career (albeit in different ways), Philip Roth functioned as a "shibboleth" for American Jews, as Bailey quotes David Boroff from 1963 (conspicuously from the same symposium—held in Israel—in which Roth would famously declare he was not a Jewish writer, but rather a writer who was a Jew), who were "given a choice: Leon Uris or Philip Roth" (220). Philip Roth—or actually, more accurately, "Philip Roth"—offered a way for Jewish community avatars (or would-be avatars) to gauge their own identification with "the" Jewish community. If early on the balance of Jewish American prestige may have tipped more toward the Uris side of the ledger, as the breakthrough narrative became hegemonic, it was certainly Roth's liberated, canny, cosmopolitan recuperation of Jewish affect that would prove to be representationally dominant. As Jewish studies consolidated as an academic field in the Viet Nam era, it transformed these insiderist protocols of Jewish community self-regard into a multidisciplinary analysis of Jewish experience, sublating establishmentarian Jewish clannishness. Its historicist approach to literature could thereby leverage Roth...

Еволюційний розвиток фінансової системи України

The article is aimed at studying the evolutionary development of the financial system of Ukraine. The sustainability of a well-regulated and well-controlled financial system is essential for both domestic and international economic and financial stability. The study examined the development of Ukraine’s financial system, reflected important links between financial stability, financial depth, financial accessibility and the importance of managing the financial system in Ukraine. Problems in financial systems can affect the efficiency of monetary policy, reduce economic downturn, require capital financing and influence the exchange rate, as well as create significant financial costs associated with saving troubled financial institutions. Moreover, with the increasing interrelations between financial institutions, as well as the emergence of financial companies along with more developed financial and trade relations between financial structures in one jurisdiction, it is possible to quickly block the movement of funds across national borders. Prospects for further explorations in this direction are the study of the development of innovative technologies in accordance with changes in the preferences of financial services consumers; distribution of virtual service channels, personalized financial services and mobile solutions; development of open banking and expanding cooperation between traditional financial institutions and FinTech companies, which will facilitate provision of better satisfaction of clients’ needs. Adoption of comprehensive changes to regulations on depository activities, securities, as well as the activities of stock exchanges will give professional stock market participants more opportunities to introduce innovations in the provision of financial services.

Особливості інтеграції фондового ринку України у світовий фондовий ринок

The article is aimed at examining the current state and peculiarities of integration of Ukraine’s stock market into the world stock market. The article analyzes the current state of the stock market of Ukraine. It is defined that according to the criterion of «capitalization of the stock market/GDP», Ukraine’s stock market can be characterized as underestimated and having the potential for growth. The tendency to reduce the number of professional stock market participants and the gradual consolidation of securities trading in two stock exchanges was noted: «PFTS» and «Perspektyva». Most operations in Ukraine’s stock market take place in the secondary market. It is recognized that the stock market in our country is practically not used by issuing enterprises to attract financial resources. As for the issuers, most of them are represented by the so-called «blue chips». Among the extant problems of Ukraine’s stock market, low liquidity of securities was noted, which remains so due to the insider nature of the stock market. In addition, the phenomenon of price manipulation is present. But, despite the existing problems, the process of integration of the Ukrainian stock market into the world stock market continues. Thus, joining the process of virtualization of the world financial system, operations in the digital environment are gradually being transferred in Ukraine and information technologies are quickly introduced into the operations of stock exchanges. The Law of Ukraine «On Amendments to Certain Legislative Acts of Ukraine on Simplifying Investment Attraction and Introduction of New Financial Instruments» adopted in 2021 took into account the requirements of the modern world stock market related to the transformation of existing forms of securities and the emergence of their new types. This law provides for the construction of a new financial infrastructure in Ukraine. It is concluded that the leading role in the process of integration of Ukraine’s stock market into the world stock market belongs to the State, which, stimulating the development of the national stock market and establishing cooperation with international organizations operating in this sphere, regulates this process.

ФОНДОВИЙ РИНОК УКРАЇНИ: ПЕРСПЕКТИВИ ДЛЯ ІНОЗЕМНОГО ІНВЕСТУВАННЯ

The current trends of the stock market of Ukraine are the main subject of analysis in the article. The author uses various research methods, such as the method of statistical data, the method of system analysis and the method of survey. An in-depth study of statistical data allowed to highlight the volume of exchange-traded securities contracts by trade organizers, using two contexts: by month and by trade organizers. In addition, the peculiarities of trading on the stock market according to the types of financial instruments were considered. The author has identified and investigated the problems of optimal functioning of the domestic stock market. Vectors of attraction of foreign investments into Ukrainian securities were considered, as well as possibilities of formation of attractive investment image of Ukraine, which were also evaluated. It has been proved that there is necessity of forming attractive investment image of Ukraine. However, practical steps in this direction are carried out rather slowly. The main reasons that negatively affect investors' willingness to invest are: large-scale corruption schemes and an inefficient judicial system; unclear, non-transparent and volatile legislation; a significant level of bureaucracy; and abuse of power by law enforcement agencies. Thus, the lack of state institutions and the government's inattention to investors' problems create uncertainty and weaken our position as a reliable business partner. To solve these problems, including problems of corporate governance in joint-stock companies, it is necessary, first of all, to protect the rights of investors. Ways to solve this problem include the following steps: strict compliance with the law for all market participants, regulatory requirements and standards of business ethics equally important for all professional stock market participants; settlement of conflicts of interest, in particular by separating powers at legislative levels; fair competition, including protection of foreign investors from price manipulation in the securities market and use of insider information.

Інститути спільного інвестування в Україні: масштаби і наслідки інвестиційної дисфункції

The development of collective investment institutions (CIIs) in Ukraine is characterized by rather ambiguous and stable trends, which at first glance do not have any objective economic basis. The dynamics of CIIs activities in Ukraine demonstrates their steady invulnerability to the crises in the global and national economy, maintaining positions (in quantity terms) against the background of reduced number of both professional stock market participants and other institutional investors, and despite the decrease in the financial instruments in circulation, and the gradual formation in public consciousness of a neutral negative view of the functioning of the national stock market. The authors' assumption that the key to such institutional viability consists in the tax preferences for the CIIs, which is confirmed by the analysis. It is noted that in this case both the economic sense and the declared "collectivity" of this investment institution are distorted. The use of CIIs solely to ease the tax burden, with gross legal and tax violations creates risks for both the beneficiaries of such tax schemes and for the very existence of the institution. The specificity of "investment areas" outside the stock market, the highly conditional performance of the function of accumulation of investment resources and, correspondingly, the profanation of the CIIs' issuer function, in particular as to the fair distribution of investment income, distortions of the essence of the ideology of collective investment in combination with extremely loyal regulation on the part of the NSSMC all presently call into question the entire possibility of considering CIIs as a full-fledged component of the stock market.

An augmented capital asset pricing model using new macroeconomic determinants

Using the interview results of 26 experienced scholars, managers, and professional stock traders in conjunction with findings of recent studies in economics, we proposed an augmented asset pricing model using the macroeconomic determinants representing the macroeconomic state variables to explain the nexus between these risks and the U.S. stock returns. This non-traded factor model (MAPM) is inspired by and based on the macroeconomic theory and models and consists of the market return, U.S. prime rate, U.S. government long-term bond rate, and exchange rate of USD/EUR as in Eq. (1). Using the Bayesian approach (via two Bayes and t.Bayes estimators) and monthly returns of the S&P 500 stocks from 2007- 2019, our results showed the MAPM consistently yielded a statistically significant greater forecasting, explanatory power, and model adequacy compared to the most used capital asset pricing model (CAPM) in practice. Interestingly, our study found and confirmed (t-statistic > 3) that the last two macroeconomic determinants have a statistically significant positive effect on the stock returns, which also supports the MAPM. These findings suggest the MAPM is a more efficient and advantageous model compared to the CAPM. So, practitioners would be better off employing the MAPM over CAPM in practice and research.

Financial monitoring on the securities market of Ukraine: current realities and perspectives

Relevance of the research topic. The domestic securities market has significant opportunities for money laundering through its underdevelopment, significant level of shadowing and the overall financial and economic situation in the country. In such circumstances, the issue of the effectiveness improvement for financial monitoring as the main tool to counteract the income legalization and the holding of shadow operations on the securities market is relevant. Formulation of the problem. The low efficiency of the stock market of Ukraine, especially with regard to providing protection and transparency of investments, significantly reduces its competitiveness to obtain both foreign and domestic investments. Financial monitoring of securities transactions has key importance for effective development of the stock market in terms of its reliability and safety. Analysis of recent research and publications. Problems of financial monitoring in the aspect of ensuring financial and economic security and counteracting the legalization of illegally obtained proceeds, the financing of terrorism and the proliferation of mass impression weapons were investigated in the works of such scientists as O. Akimova, S. Butkevich, O. Glushchenko, S. Kuznetsov O. Kurishko, L. Klyusko, A. Khmelyuk and others. Selection of unexplored parts of the general problem. Considering the significant results of the research of the mentioned problems, the important object of financial monitoring, such as the securities market, is remained without the attention of the researchers though a considerable amount of shadow financial transactions is going on it. The purpose of the study is to analyze the current realities of financial monitoring in the Ukrainian securities market and to determine its development perspectives. Method or methodology for conducting research. The research was conducted on the basis of a systematic approach using methods of analysis, synthesis, comparison, generalization and extrapolation. Results of work. The peculiarities of primary and state financial monitoring on the securities market of Ukraine are determined. Key performance indicators of professional stock market participants as subjects of primary financial monitoring are analyzed, as well as indicators of activities of the NSSMC and SSFM of Ukraine in the field of financial monitoring on the securities market. The main typical violations of the legislation on financial monitoring in the stock market and the main types of securities used to launder “dirty” funds are highlighted. The field of application of results. The results of the study can be used in the preparation of drafts to the domestic legislation governing the implementation of financial monitoring, as well as in the preparation of state programs for the development of the domestic stock market. Conclusions. According to the results of the research, it is concluded that there are significant perspectives for the development of financial monitoring on the Ukrainian securities market. Considering the common violations in the field of the financial market monitoring legislation, control for customer risk management procedures should be enhanced as well as for procedures to identificate, verificate and clarify information about clients and their representatives. Considering the most common ways for “dirty” funds laundering in the securities market, its professional participants – the subjects of the primary financial monitoring should follow the NSSMC's recommendations for setting high level of risk for clients with certain characteristics.