Essentiality, importance and necessity of institutional investors in stock market of Ukraine

Abstract

Introduction. The article is devoted to the importance of institutional investors in the economy. The main advantages of both stakeholders of the stock market and the economy in general are detrmined. It has been analysed the current state of non-bank financial institutions (institutional investors), namely insurance companies, collective investment institutions and pension funds. The basic trends of each of the institutional investors are considered. The ways of increasing their investment attractiveness are singled out.

Goal. The study aims to clarify the nature of the operation of institutional investors in the stock market. The definition of the main advantages of their functioning as a member of the development of the stock market and the economy in general is considered in the research.

The method (methodology). The work uses such general scientific methods as method of synthesis, method of synthesis and analysis, method of comparison, method of abstraction and induction.

Results. It has been defined the essence of the concept of "institutional investors". We have singled out those ones that operate in Ukraine. The basic advantages of institutional investors as participants in the development of the stock market and the economy in general are determined. It has been carried out the analysis, which examined non-bank financial institutions (institutional investors). It shows that they are at relatively the same level. But we should stress on their best results (95%)that  were shown during 2007-2014. Factors that negatively affect the functioning of CII in Ukraine are defined. The measures to increase the investment potential of the latter are offered.