Foreign experoence of the functioning of stock markets and their impact on the economy

Kovalyuk Andriy
PhD in Economics, Associate Professor, Associate Professor of Banking and Insurance Business Department, Ivan Franko National University of Lviv, Lviv, Ukraine, E-mail:andriy.kovalyuk@lnu.edu.ua, ORCID ID: https://orcid.org/0009-0002-5284-2624

Ulych Oksana
4th-year graduate student of the Department of Accounting and Auditing, Ivan Franko National University of Lviv, Lviv, Ukraine, E-mail:o.uluch@gmail.com, ORCID ID: https://orcid.org/0009-0000-8935-0506

Cite this article:

Kovalyuk A., Ulych O. (2024) Foreign experoence of the functioning of stock markets and their impact on the economy. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Zarubizhnyi dosvid funktsionuvannia fondovykh rynkiv ta yikh vplyv na ekonomiku; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 5-6 (318-319), pp. 58-68.

Abstract

The objective of this article is to explore the international experience of stock market functioning and its impact on the economy, as this is relevant in the context of globalization and integration processes among the world's nations. To achieve this objective, comparative, inductive, and analytical methods have been employed. The formation and operation experience of the top two largest stock markets in the world in 2023, based on their market capitalization, namely the New York Stock Exchange, NASDAQ Stock Exchange have been examined, and their comprehensive impact on the economy has been analyzed. The practical significance of the study lies in providing a brief key summary of the functioning features of the top two largest exchanges in the world and the conclusions drawn regarding their impact on the economies of countries. The largest stock markets play a crucial role in facilitating capital attraction, fostering the development and expansion of enterprises and companies, and creating new job opportunities. The effective functioning of these markets is vital to ensuring easy access to financial resources and attracting investments both domestically and internationally. It is precisely due to their liquidity and transparency that companies can initiate offerings of stocks, bonds, derivatives, which contributes to the development of new projects and innovations. However, it is important to consider that disturbances in the stock markets can have a serious impact on the economies of countries, especially when it comes to global crises or recessions. Excessive volatility and large fluctuations in asset values can lead to financial instability and loss of investor confidence.

Keywords

stock market, exchange, listing, shares, capitalization, brokers, indices, economy, annual fees, initial public offering (IPO).

JEL classification: G100; DOI: https://doi.org/10.32680/2409-9260-2024-5-6-318-319-58-68

UD classification: 336.7

References

1. Official website of the Ministry of Finance of Ukraine. Retried from: https://minfin.com. ua/ua/invest/articles/sp-500-toptatimetsya-na-misci-a-yaponskiy-nikkei-225-gotuetsya-do-zletu (accessed 07 May 2024). [Іn Ukrainian].
2. Focus. Retried from: https://focus.ua/uk/economics/563730-bankopad-trivaye-yak-ussha-zvalivsya-odin-iz-najbilshih-bankiv-krayini (accessed 07 May 2024). [Іn Ukrainian].
3. Legal Consulting Group. Retried from: https://uka.in.ua/news/biz/scho-take-fondovyjrynok.html (accessed 07 May 2024). [Іn Ukrainian].
4. Edudwar. Retried from: https://www.edudwar.com/top-10-stock-exchanges-in-the-world/ (accessed 07 May 2024).
5. Agrarian Exchange. Retried from: https://agrex.gov.ua/istoriya-odniyeyi-birzh/ (accessed on 07 May 2024). [Іn Ukrainian]. NYSE. URL: https://www.nyse.com/history-of-nyse / (accessed 23 June 2024).
6. NYSE: 902.03, Fees for Listed Equity Securities. Retried from: http://surl.li/uoeys (accessed 24 June 2024).
7. Tradenew.Pro. Retried from: https://tradernew.pro/ua/forex-basics/ shho-take-nasdaqindeks-i-yak-vin-pov-yazanij-z-odnojmennoyu-fondovoyu-birzheyu.html (accessed 24 June 2024).
8. Businessnewsdaily. Retried from: https://www.businessnewsdaily.com/ 3403-nasdaq. html (accessed 24 June 2024).
9. Investopedia. Retried from: https://www.investopedia.com/terms/n/ nasdaq.asp (accessed 24 June 2024).
10. Corporate Finance Institute. Retried from: https:// corporatefinanceinstitute./com/ resources/capital-markets/nasdaq-composite/ (accessed on 24. June.2024).
11. Analyticsteps. Retried from: https://www.analyticssteps.com/blogs/ what-nasdaq-and-itsmarket-structure (accessed on 24 June 2024).
12. Visual Capitalist. Retried from: https://www.visualcapitalist.com/cp/ nasdaq-100- companies-by-weight/ (accessed 24 June 2024).
13. Statista. Retried from: https://www.statista.com/ statistics/1277216/nyse-nasdaq-comparison-number-listed-companies/ (accessed on 24. June 2024).