FEATURES APPLICATION OF STOCK INDEX IN THE OPERATIONS WITH SECURITIES AND FINANCIAL INSTRUMENTS

Abstract

Stock market in the economic relation of state is a complex of invest-financial relations, which are transformed in cash contributions of participants until branches and spheres of the objects economical activities, to which relate companies, organizations, institutions of all ownership forms, and also territorial districts, where localized sectors of public economy, municipal fields, capital construction institutions etc. But first of all stock market display system relationship between participants, what relating operations with securities and financial instruments in the form of trades on basis trends in certain areas of activity and economical processes in the state. Character sign of functioning stock market is direct participation in agreements with securities under time realization market trades – with aim involve incomes. And here to substantiate constant application indicator of stock index, that is measurement of fluctuation value securities on stock market, and has a significant impact on economy the state. In this article, the methodical basis for the evaluation of stock indexes, which are more commonly used on the stock exchange, are disclosed in domestic and foreign practice. And this algorithm for calculating stock indices is based on the criteria for selecting information about entrepreneurial activity and the economic state of the country, as well as those factors that impact – both on the country’s economy and on the stock market in particular. Of course, stock indices are subject to changes that are primarily related to corporate events experienced by companies whose securities are included in the index. Changes may also apply to the list of securities used to calculate the index. Because these stock indices that exist and are most often used within the stock exchange, form the value of securities and financial instruments, and also affect the rates of national currencies. The features of the methodology for evaluating stock indexes are the calculation of price oscillations due to the occurrence of random phenomena, which allow determine the degree of yield of securities and financial instruments for a certain period of time, taking into account changes in their values.