Dmytro Lapovskij: The stock market as a factor of economic growth

Abstract

The article deals with actual problems of formation and functioning of the stock market as one of the key elements of the transformation of a planned economy in a socially-oriented market economy. The structure of the systematic economy transition in the sphere of stock market is characterized. The basic functions of the stock market in the development of the national economy (ensuring the resource allocation, monetization of the economy, the transformation of savings into investments) are analyzed. The role of venture capital in the development of the stock market is researched. Positive aspects of the stock market functioning as a catalyst for economic growth are determined. It is revealed that the main objectives of the stock market is to assess and test the performance of companies, opportunities for profit, effectiveness of management and corporate management, distribution and risk management, reducing transaction costs, facilitating transactions. The relationship between the stock market and banking system is analyzed. The basic mechanisms of state regulation of the stock market in countries in transition are outlined. The processes of monetization of the economy through the stock market, characteristics and requirements for effective monetization of the economy are researched. The problems of financing the real sector in conditions of underdevelopment of the stock market in transitional countries are researched.