MODELING OF PRIMARY ISSUES OF SHARES OF A JOINT STOCK COMPANY

Abstract
At present, in contrast to lending and investment services, models for raising additional capital for a company by issuing shares and then placing them on the securities market are becoming more popular. This article discusses the model of issuing shares for a joint-stock company (JSC) and the subsequent purchase of their traders. The model has a two-level hierarchical structure, where the leading party is the JSC, and the lead, in turn, is the shareholders. The company determines the number of shares and their issue price. Depending on the total capitalization of the company and the nominal share price, the company’s revaluation coefficient (P/BV) is formed. This coefficient affects the General mood of shareholders in the market, who use the sale or purchase of shares to change the total capitalization of the company. The price for the current time period consists of the algebraic sum of the price for the previous time period and the total capitalization, thus, through changes in the total turnover of funds, shareholders are able to influence the share price. The main income for a shareholder is the difference between the purchase and sale of shares, as well as the payment of its dividends. For the company, the task is to maximize profits by buying shares on the stock exchange, as well as minimize losses when selling them. After describing the target functions and applying the simulation method, the optimal issue price for a fixed number of shares was found for the company. Unfortunately, the market does not lend itself to accurate forecasts due to the large influence of the human factor. Very often, shareholders can act against the rational and most profitable strategy. Despite this, this model will help to approximate the behavior of players in the stock market in subsequent development, thereby facilitating the study of price movements on the stock exchange.