Financial institutions form the core of the stock market, ensuring its continuous and efficient functioning. They mobilize savings from individuals and channel them into investments in real businesses, fueling economic growth. Major financial institutions include banks, insurance companies, and investment/pension funds. The stock market allows these institutions to convert savings into investments through the buying and selling of securities.

1. Stock market institutions
Made by:
Julia Hnatkivska
Viktoria Striletska

2. The stock market occupies an extremely important place in the structure
of a market economy, as it encounters economic entities experiencing a
shortage of funds and the need for additional investments, and owners of
savings that can be used to finance investments. In the stock market, the
movement of dummy capital in the form of securities directly
determines and legally consolidates the movement of real capital, and is
mediated by financial institutions. Thus, financial institutions form the
core of the stock market, ensuring its continuous and efficient
functioning.

3. Financial institutions are banks, insurance companies, investment funds
and pension funds that mobilize the financial resources of individual
smallholders and transform them into investments in the real economy, thus
creating a material basis for economic growth. At the same time, financial
institutions convert savings into investments through the use of the stock
market, in the process of selling and buying securities on it.
Financial institutions play an important role in the economic system of any
country with a developed market economy. They regulate the cycle of
financial resources, provide for their accumulation and redistribution, as
well as form an effective mechanism to stimulate the development of
investment, production area of the economy, as well as the whole system of
socio-economic relations.

4. Financial institutions carry out
business activities for the
provision of financial services in
a specific legal form,
characterizing the form of
ownership of capital, as well as
the responsibility and distribution
of profits among their owners. In
addition, financial institutions
operate in the form of legal
entities, that is, organizations that
are established and registered in
the manner prescribed by law.

5. Financial institutions include
organizations that have
different sources of
mobilization and investment in
attracted funds from different
owners of capital: commercial
banks, credit unions, savings
and loan associations,
insurance companies,
investment funds, pension
funds, financial companies.

6. There are seven main functions of
financial institutions: the mediation
function, the regulation function,
the accumulation function, the
transformation function, the
information function, the incentive
function and the market efficiency
assurance function.

7. A stock exchange is a joint-stock company that focuses on the
supply and demand of securities. The stock exchange may be
created by at least 20 founders - securities traders, who are
authorized to carry out commercial activities with securities,
provided that they include in the authorized fund at least 10,000
tax-free minimum incomes of citizens. A stock exchange is an
organization that is created without the purpose of earning
profit and solely organizes the conclusion of transactions of
purchase and sale of securities and their derivatives. It may not
carry out securities transactions on its own behalf and on behalf
of its clients, or perform the functions of a depositary.

8. The following stock exchanges are active in
the securities market of Ukraine:
• Ukrainian Exchange;
• Stock Exchange “PFTS”;
• Stock exchange “Perspective”;
• Kyiv International Stock Exchange;
• Ukrainian Stock Exchange;
• Ukrainian Interbank Currency Exchange;
• INNEX Stock Exchange;
• Stock Exchange “Universal”.

9. Ukrainian Stock Exchange (UFB) is the stock exchange of Ukraine, the first Ukrainian
stock exchange to be created. Joined October 29, 1991 year. The joint-stock company
is a private type, the authorized fund of which is divided into 2000 ordinary registered
shares and amounts to 15 400 000,00 UAH.
Ukrainian Stock Exchange is a stock exchange of Ukraine, the
authorized capital of which is 12 million UAH (about $ 2.4 million). 313
securities are traded on the stock exchange of the Ukrainian Stock Exchange, of
which 197 are shares.

10. The first stock exchanges in the world were the Amsterdam Stock Exchange (1602), the London
Stock Exchange (1770), the New York Stock Exchange (1792). Initially, the development of
exchanges was associated with an increase in government debt, because the capital invested in
bonds could be converted into money. After the first JSCs have appeared, stocks are the object of
stock exchange turnover.Today, there are about 200 stock exchanges in the world united in the
International Federation of Stock Exchanges. The largest of these are the New York, London and
Tokyo stock exchanges - accounting for up to 60% of global Era securities trading. Each country
has its own international, historically formed system of exchanges. Given the role played by
exchanges in national financial and investment systems, it is possible to identify countries with a
mono- and polycentric organization of stock exchanges. Next, consider the top 3 global stock
exchanges.

11. NYSE Euronext (New York Stock Exchange) Formed in 2007 as a result of the
merger of two exchanges - NYSE (New York Stock Exchange) and Euronext
(European Stock Exchange). No wonder why it is considered the largest stock
exchange in the world, because the market capitalization of NYSE Euronext is
about $ 16 trillion. The Exchange has been ranked first in the world rankings for
more than one year. More than three thousand companies trade in financial
instruments here. The Paris, Lisbon, Amsterdam and Brussels exchanges are
managed by NYSE Euronext. Securities of 4,100 companies are listed on the stock
exchange (2018). The total capitalization of companies trading on the NYSE by the
end of 2018 amounted to $ 32 trillion.

12. The Tokyo Stock Exchange was
founded about a century and a half ago,
and is therefore considered one of the
oldest and largest stock exchanges in the
world. Regular, special members and
site-owners, so-called intermediaries,
can trade here. In terms of market
capitalization, the Tokyo Stock
Exchange is second only to the New
York Stock Exchange. World famous
companies such as Nikon, Casio,
Olympus, Toyota, Honda and many
others place their shares here.

13. The London Stock Exchange, abbreviated
LSE, dates back to 1570. It was officially
founded in 1801. Today, over 50% of all
global companies are listed on the London
Stock Exchange, making it the world's most
internationally listed company - nearly 600
companies. Futures and options are also traded
here. Capitalization on the LSE is over US $ 6
trillion or over £ 4 trillion. Like most world
exchanges, London has a number of stock
indices, including the FTSE (Financial Times
Stock Exchange), which has built over 300
indicators for market analysis.

14. Banking institutions are another stock market
financial institution. Consider the top 3 largest
banks in the world. For several years in a row,
the leading positions in this rating have been
held by Chinese banks, and this is quite natural,
given its annual growth in economy and
productivity.

15. Industrial and Commercial Bank of China (ICBC).
The largest bank in the world - the Industrial and
Commercial Bank of China (ICBC), is one of the
Big Four financial institutions in China, controls
almost a fifth of the entire banking sector in the
country.ICBC has $ 4,027 billion in its assets,
according to the latest data, and a market
capitalization of $ 305.1 billion. The bank was
established in 1984 and, at the moment, has more
than 450 thousand employees. The headquarters
of the company is located in Beijing. Over 70% of
the company is owned by the country.

16. China Construction Bank Corporation
It is the second largest bank of China which was founded in 1954.
According to the latest data, $ 3,377 billion is in its assets, and the market
capitalization is more than 225 billion.
Initially, the CCB was organized solely under government settlement, but
subsequently was successfully redeveloped into a commercial one. The
company includes more than 14 thousand branches around the world with
345 thousand employees.

17. Agricultural Bank of China
ABoC was founded in 1951 by Mao Zedong to help collective farms, peasants
and workers. At the moment, the bank is confidently entrenched in the field of
commercial financial organizations in China and the world. The main office is
located in Beijing, but the bank in its assets has about 24 thousand
representative offices throughout the country and even abroad.
Agricultural Bank of China has more than $ 3,287 billion in assets, and market
capitalization is $ 197 billion, according to the latest data.

18. Top-3 insurance companies
Ping An Insurance Group — №1
A company from China has a market value
of $ 90 billion, its assets are estimated at $
732.3 billion. Over the past year, the
company made a profit of $ 8.7 billion,
sales amounted to $ 98.7 billion. Ping An
Insurance Group was founded in 1988,
currently time has become the largest
financial insurance holding company
headquartered in Shenzhen.

19. Allianz — №2
The German insurance giant is showing steady stability.
Market value at the end of the reporting period amounted to $ 79.7 billion,
assets 926.2 billion, sales $ 115.4 billion, profit margin $ 7.3 billion.
The year of foundation of the Allianz company is 1890. The headquarters is
located in Munich and has the title of systemically important insurance
company for the global economy.
Allianz operates worldwide through a wide network of representative
offices, branches and subsidiaries, including in Ukraine.

20. AXA Group — №3
The AXA Group, which ranks third in the
ranking of insurance companies, was also
recognized as a systemically important
company for the global economy. The
AXA Group is a French insurance
company, was founded in 1816 and, by
the end of 2017, has a market value of $
61.9 billion, assets of $ 965.4 billion,
sales of $ 120.8 billion , profit of $ 5.9
billion. Headquarters: Paris, France

21. Therefore, the stock market is a key factor in the mobilization of
financial and capital resources in a market economy, as well as an
instrument of innovation policy in the country. It is an indispensable
attribute of institutional regulation of the national economy. The
formation and dynamic development of an efficient stock market
system is a driving force for the growth of the real sector, the entire
economy, as it provides investment to industry, the social area, which
causes the revival of production and reproduction processes not only
in investment objects, but also in all related sectors, including
transport. and other infrastructures.