World Stock Market: Current State and Prospects of Development of Stock Exchange

Abstract

The stock exchange is the main element of the stock market, and it is also an indicator of the efficiency of capital movement and the rapid development of the economy. It is a virtual marketplace where buyers and sellers can trade existing securities. Stocks are also called stocks or equity, most companies have shares with a turnover of more than a billion dollars. Stock exchanges play a great role in the structure of the leading stock prices, exchange courses and indexes in the country's economy. The stock market acts as a powerful and effective platform for the realization of opportunities for the mobilization of financial resources and the birth of a number of new competitive investment instruments. The main role of the stock exchange is to serve the movement of money capital, which mediates the distribution and redistribution of national income both in the national economy as a whole and between social groups, sectors and spheres of the economy. А stock trading can be considered any market where bonds are bought and sold, the prices of which are determined by offer and purchase. The activity of the stock exchange largely determines the efficiency of the stock market and the degree of influence on economic processes in the country. It is the stock exchange that ensures the concentration of demand and supply of securities, their balance at the expense of stock exchange pricing, which truly reflects the level of efficiency of the functioning of equity capital. For each financial system, the determining factor is the degree of involvement of the banking sector and the stock market in the process of financing the investment activity of enterprises. The development of the stock market increases the degree of participation of companies in the process of raising additional funds for their investment programs by placing their securities on the market, and a developed stock market also plays a key role in financing the economy compared to the banking sector. Therefore, the purpose of this article is to evaluate the process of globalization of the stock market in the world environment and analyze current state. Indicators of the stock market in the world were also considered and the main conditions of restraint to the prospects of its effective functioning were highlighted. The state and development prospects of well-known stock exchanges and further possible directions for improvement of the world stock market are analyzed.

A Hybrid MCDM Approach Using the BWM and the TOPSIS for a Financial Performance-Based Evaluation of Saudi Stocks

“…Another study by Felix et al [20] evaluated the efficiency of price discovery within the Nigerian Stock Exchange, focusing on the unique characteristics of stock markets in developing countries. Svitlana et al [21] delved into the globalization of the stock market and provided a comprehensive analysis of its current state. The study considered worldwide indicators and highlighted the conditions that hinder it from functioning effectively.…”