Vovk Y. Foreign capital in the shares market of Ukraine

The dissertation deals with theoretical and pragmatic aspects of foreign capital functioning in the domestic share market. It is established that features of share capital functioning at the modern stage of global economy development, as well as economic and legal characteristics of shares determine the existence of special functions in the share market - perpetual financial support, promotion of passive entrepreneurship, overcoming of linear relationship between risk and return. It is emphasized that information and technological component is the basis of cross-border capital movements and largely determines the place of non-resident investors in the subjective structure of the modern share market. It is argued that emergence and spread of the phenomenon of financial economy is directly determined by the contradictions of modern globalization. Functioning of foreign capital in the share market is characterized by all antagonisms inherent to economic and financial globalization. It is determined that the key threats connected with the functioning of foreign capital in the share market of Ukraine are identified with: the mismatch of investment volume through the share market to the needs of Ukraine; the dominance of financial-industrial groups which use the share market to make fake-foreign investments; the specific geographical structure of investments, which indicates the use of offshore zones to reduce the level of tax burden; application of the share market mechanism for the purpose of capital export abroad. All this made it possible to identify and characterize the «effect of financial diffusion», which can have both positive and negative dimensions. Taking into account risks of foreign capital expansion in domestic share market, the state should provide implementation and practical realization of Strategy of financial security, integral part of which should become unit concerning the presence of nonresident investors in different sectors of Ukraine's national economy. The key task of this document is to highlight the strategic state's view concerning the possibilities of excessive concentration of foreign capital in strategically important sectors of national economy. Besides, this document should include not only clear criteria of financial security, but also not less clear list of measures in the case, when this criteria can be potentially broken.