members is further formed by other governing bodies, such as the stock exchange
committee, the audit and arbitration commission.
Each of the active bodies of the stock exchange performs a number of functions
that in one or another way provides activity of the structure. In Ukraine, stock exchange
activities are still at the stage of formation, since the number of existing stock
exchanges in many cases does not correspond to the quality of their activities and
results for the economy of the country.
Pay attention to such active body of the stock exchange as a brokerage office.
Brokerage offices can be called as a one of the key structural units of the stock
exchange, because the purchase and sale of real goods and all commodity-exchange
transactions are made here. Brokers and agents work at brokerage offices.
Characteristics of their activities differ on certain criteria, including types of stock
transactions; types of stock agreements; the procedure for conducting calculations;
payment system etc., but trade on the stock exchange is not possible without stock
exchange mediators.
In Ukraine, mediators may be people who do not have a special education in the
field of trade, but are members of the stock exchange; they have certain skills and have
undergone appropriate counseling training. The interest of the mediators is obvious,
since they are profit from the conclusion of agreements, thereby emphasizing their
ability and competence on the stock market. There is a certain independence of the
brokerage offices from the stock exchange, since the brokerage office has a charter and
other constituent documents under which they can independently conclude contracts
and open their own accounts.
In addition to the main function of concluding contracts, brokerage mediators
have continuously to monitor prices on the market, using a variety of market research
methods, and apply modern marketing techniques, including advertising, to attract new
potential customers to the stock market.
There is a list of disadvantages and problems in the work of stock brokers and
brokerage offices at this stage of the development of stock trading in Ukraine, among
which are the following:
-
Insufficiently high qualification level;
-
Low level of trust of sellers and buyers;
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The significant risks of the conclusion of agreements;
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Low level of marketing policy at the local level;
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Imperfection provision of informational function among potential clients;
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Insufficient level of support of state.
These and other disadvantages slow down the process of development and
establishment of the stock exchange in Ukraine. In order to eliminate the negative
effects that may be caused by the passive development of the structural bodies of the
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