MODELING THE ADDITIONAL TAXATION IMPACT ON THE FINANCIAL INSTRUMENTS PRICING

Abstract

The tax on financial transactions as an instrument to restrict the level of speculative trading has considered. A mathematical model in which one of the factors influenced on a financial instrument price is the tax rate on financial transactions, - has proposed. The hypothesis that the additional tax on transactions with financial instruments reduces e speculative activity level by reducing the price volatility has tested. The introduction of a tax even at a small rate helps to reduce the financial instruments prices volatility has revealed.

Keywords

• tax
• financial transaction taxation
• financial instruments pricing
• the volatility of the market prices
• additional taxation on the stock market
• mathematical modeling