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Peculiarities of the functioning of the stock market of Ukraine in the context of european integration

Author

Listed:
  • Оksana Urban
  • Мykola Dziamulych
  • Natalia Chyzh

Abstract

In modern conditions, the development of financial markets is an important component of improving the efficiency of business, improving the investment climate and strengthening the economy as a whole. The modern economy cannot function effectively without a developed and stable stock market, because it redistributes free financial assets to best meet the investment needs of the national economy. Today in Ukraine much attention is paid to the development of small and medium-sized businesses, which in turn requires additional financial resources.The functioning of a full-fledged stock market helps to attract cheap long-term resources to the country, as well as provides a reliable system of financing economic development, which in turn will lead to the creation of favorable conditions for doing business. In the articles, the authors provoke research into the prospects of Ukrainian companies going public on the EU stock exchanges, as the issue of the overall ranking of countries and the military situation in eastern Ukraine is acute. After all, under equal conditions of Ukrainian and Polish companies, the shares of a Polish company raise funds for traffic, if the investor prefers absolute reliability, so expect to intensify in the EU stock market. At the current stage of development of the stock market of Ukraine, there are such problematic issues related to information disclosure, as domestic financial reporting provisions developed on the basis of international standards do not always meet these standards. In the economic literature there is a sharp controversy about the ways of development of the stock market of Ukraine, as there are two possible ways to solve it. The first way is to develop the stock market "from scratch", as Poland has done. The second way involves the implementation of European standards through the gradual introduction of norms in the stock market. Ukraine has sufficient economic potential to build an efficiently functioning stock market. There are two ways that Ukraine can follow: to start from scratch, which is quite problematic, or to move towards European standards gradually. At the present stage of development of the stock market of Ukraine, the most important task is to increase the inflow of investment through market integration into global financial markets. Equally important are the issues of increasing the capitalization of listed companies, trading volumes in the stock market and increasing the protection of investors' rights

Suggested Citation

  • Оksana Urban & Мykola Dziamulych & Natalia Chyzh, 2021. "Peculiarities of the functioning of the stock market of Ukraine in the context of european integration," E-Forum Working Papers, Economic Forum, vol. 11(2), pages 13-18, May.
  • Handle: RePEc:cuc:eforum:v:11:y:2021:i:2:p:13-18
    DOI: https://doi.org/10.36910/6775-2308-8559-2021-2-2
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