FEATURES OF THE STOCK MARKET AS A COMPLEX ADAPTIVE SYSTEM

Abstract

The article considers the essence and features of the stock market as a complex, adaptive system. The current market environment forms a new paradigm of functioning of the stock market, which distinguishes such system-forming features as complexity, interactivity, dynamism and adaptability. The systemic characteristics of the stock market are disclosed. It is emphasized that the complexity of the stock market as a system implies a wealth of opportunities and a variety of interpretations of options for its development, but subject to the exclusion of simple and easy ways of evolution of its subjects in general and the stock market itself in particular. It is proved that the stock market can be considered a complex system provided that the interaction of its elements is nonlinear. The nonlinearity of interaction between the components of the stock market as a system generates its specific properties, which determine the complexity of the behaviour of market participants. It is emphasised that the stock market is a complex, complex system, which implies the need to take into account its adaptability and nonlinearity of functioning. The property of adaptability implies that the stock market strives for an equilibrium state on the basis of rapid adaptation of its components to changes in the parameters of the external environment. It is proposed to distinguish between passive adaptation, which is the stock market's response to changes in the environment, and active adaptation, which is the impact of the stock market itself on the environment. It is noted that the stock market should be considered as a complex adaptive system, since there is a process of passive and active adaptation. The property of adaptability implies that the stock market strives for an equilibrium state. The stock market as a complex and adaptive system is inherent in unpredictability in the long run, which is explained by the presence of an inverse relationship between its elements and the concept of critical levels of its development. The main features of the stock market as a complex, adaptive system are outlined: non-determinism, distributive nature of relations, reversibility of development cycles and self-organisation. The author notes that the functioning of the stock market in modern conditions should be carried out in accordance with the following principles and assumptions.