FEATURES OF INVESTMENT ACTIVITIES OF CAPITAL MARKETS PARTICIPANTS

Abstract

Further development and intensification of investment activity in the capital markets are among the main factors behind Ukraine's intensive economic growth. Increased volumes of transactions with financial assets and other liabilities in the capital markets in the economic cycle lead to a natural interest of different groups of investors in these markets, in particular, the money market, as well as the securities and derivatives markets. At present, the capital markets of Ukraine are underdeveloped and lag far behind other markets of leading countries, failing to fulfill their main function—investment. The purpose of this article is to substantiate the theoretical and methodological foundations of investment activity of various groups of capital market participants. It is determined that the main subjects of capital markets are investors—individuals and legal entities that manage investment resources and purchase financial instruments in the capital markets to receive income/profit from investment and/or to acquire certain rights that they grant to owners of financial instruments in accordance with the law. Investors are divided into individual, institutional, and corporate investors. An important step towards studying different investors operating in the capital markets is their classification. Based on a synthesis of the work of Ukrainian and foreign researchers, the author summarizes their classification by the most important features, which are interpreted in various ways, affecting investment activity in the capital markets. Yield/profitability is necessary for attracting financial resources in the capital markets, providing consultations, and covering investment risks in the process of placing and circulating financial instruments. This function is realized by investment financial intermediaries, such as brokers, dealers, and investment banks. The real basis of any investment process is a consistently implemented investment cycle, which consists of stages. Each asset management entity is an integral part of investment processes that have their own goals and interests, without which investors lose their motivation to participate in investment activities, and therefore investment activity decreases at the macro level. Each stage of the asset management process of institutional investors is characterized by the performance of relevant works and operations carried out by various participants in capital markets, which are necessary to meet investment demand through the formation of investment proposals in such markets.