by
RUSSIAN EMIRATES
92
ÍÅÄÂÈÆÈÌÎÑÒÜ, ÁÈÇÍÅÑ, ÈÍÂÅÑÒÈÖÈÈ
T
he history of theworld stock
market is several hundred years
old. Ukraine’s stockmarket came
into existence only 15 year ago. Its
history beganwhenUkraine became
independent in 1991, adopted
the Law “On Securities and Stockmarket”and
establishedUkrainian Stock Exchange.
When theprivatizationprocessbegan, it
stimulated thedevelopmentof the sock-market. In
spring1992,VerkhovnaRada (Parliament)ofUkraine
adopted the legislation that lay the foundation for
privatization.Mainvolumeof certificateprivatization
was implemented in1995-1999.Monetary
privatizationalsowashappening inparallel. At that
timeUkrainebeganusing theprivatizationvia sales
on stockexchange. StatePropertyFund sold the
sharesofpubliccorporations throughUkrainian
StockExchange. Stockexchange sales invigorated
theactivitiesof the stockmarket andallowed
thedeterminationof actualmarketpriceof the
privatized stateproperty.
In1995-2000, StateProperty Fund sold2,965
shareholdings through traders. In1995, only 50
shareholdingswere sold at the stock exchange,
while in1998, their number increased to762.
Over the year 1999, thenumber of sold share
holdings equaled629, and in2000–515. In1997,
the average cost of a sold shareholdingwas 114
thousandhryvnias. In1998, it increasedby 2.5
times. In1999, average shareholding sold at the
stock exchange cost 474 thousandhryvnias, and
in2000–1457 thousandhryvnias, which is 3.1
timesmore than in1999. (Today’s exchange rate:
5hryvnias=1USdollar).
Debt securitiesmarket including corporate
bonds alsodevelops dynamically. As compared
to shares issue, loans in the formof bonds have
certain advantages. Corporatebonds allow
companies to access capitalmarketwithout
changingownershipor redistributingproperty.
Moreover, sinceUkrainian companies have low
ratings on thenational stockmarket, there is
no sense for issuers in issuing additional shares,
UKRAINE’SSTOCK
MARKETCAME INTO
EXISTENCEONLY15
YEARAGO. ITSHISTORY
BEGANWHENUKRAINE
BECAME INDEPENDENT
IN1991, ADOPTEDTHE
LAW“ONSECURITIESAND
STOCKMARKET”AND
ESTABLISHEDUKRAINIAN
STOCKEXCHANGE
ÓÊÐÀÈÍÀ - ÎÀÝ
UKRAINE’S
StockMarket Grows Fast
