Actual problems of innovative economy

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Features of selection of foreign securities for investment activities

УДК: 339.7

DOI: https://doi.org/10.36887/2524-0455-2020-2-15

Lagodiienko V.,
доктор економічних наук, професор, завідувач
кафедри маркетингу, підприємництва і торгівлі, Одеська національна академія харчових
технологій, ORCID ID: 0000-0001-9768-5488
Tryhubchenko A.,
аспірант кафедри підприємництва, торгівлі та
біржової діяльності, Національний університет біоресурсів і природокористування України
ORCID ID: 0000-0001-7605-1603

Abstract.

Introduction. Selecting stocks to invest in is an extremely complex and responsible process. The investment process is the purchase of financial instruments both for long-term ownership and for a stable return.

The purpose of the article is to develop practical recommendations and establish criteria for selecting securities for the investment portfolio, in particular for investors operating in the foreign stock market.

Results. The main criteria by which investors should select shares in their own investment portfolio are identified: the presence of a trend; financial stability of companies; liquidity of shares; historical trends; correct distribution of capital. The presence of the trend is demonstrated in the work with the involvement of Bollinger Bands. This indicator is based on one of the basic indicators of technical analysis, namely the average current price for a specific period of time. To determine financial stability, one of the criteria for selecting shares in the S&P500 index, which is conducted quarterly by the S&P Global Inc. committee, was chosen. The liquidity of shares, the main indicator of which is the ability to quickly buy or sell a security with a minimum difference in price, depends on the volume of trades. In financial markets, including the stock market, seasonal trends are also important. One of the main rules in the formation of the investment portfolio is diversification, i.e. the distribution of capital among several low-correlated instruments. This makes it possible to align the yield curve of the portfolio, when during the drawdown of one asset another shows growth and vice versa.

Conclusions. This list of factors for the selection of shares for the formation of its own investment portfolio is not complete. Of course, for more detailed acquaintance and analysis of stocks it is necessary to use deeper analysis, paying attention to tendencies inside the sector, company news, fundamental indicators, price, belonging to the index, country of origin of the company, etc. However, for the initial stage of the investment portfolio formation, these five criteria are sufficient.

Key words: shares, investment portfolio, investment, criteria for selection of shares.

References.

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The article was received 02.03.2020