Organizational and Legal Issues of Attraction Investment in Agricultural Sector and Exchange Trade of Agricultural Products

Abstract

Problem setting. The necessity for appropriate organizational and legal support of national economy agricultural sector functioning should be manifestly obvious. Let’s consider the issue of attracting investment in agricultural sector through the IPO market and the problems of exchange trade of agricultural products. Target of research. The aims of the research are to determine the priority of the agricultural sector of Ukraine for IPO in the stock market, and to examine issues of attracting investments in agricultural sector through the IPO market. Article’s main body. The IPO market is one of the most dynamic and advanced sectors of the stock market, especially in terms of activation processes of capital flows and attraction investment. The world volume of IPO market amounted to more than 200 billion dollars. Current research fixed that the agricultural sector is the priority sector for potential Ukrainian issuers for IPO on the stock market. Achieving of certain advantages in terms of preparing and implementing of public offer of shares is the main purpose of IPO on the stock market. However, due to the mismatch of stock market development in Ukraine and European stock markets there are certain limitations and barriers. Among them: low competitiveness level of financial institutions in one country compared to another one; low degree of confidence of foreign investors to Ukrainian companies. Conclusions and prospects for the development. Abovementioned conclusions let us note that the regulation of the legal status of agricultural exchanges is at the sufficient level. The author defined general principles of commodity exchanges and the specific requirements for the functioning of agricultural exchanges, including those that involved in the concluded agreements for the formation of national and regional needs, and those that involved in price regulation at the agricultural market. The article outlined the comprehensive rules of exchange trading of agricultural products. However, the issues of further development of agricultural exchanges in Ukraine and increase of the volume of agricultural products sold at the agricultural stock market keep theirs necessity.