STOCK MARKET UNCERTAINTY METHODOLOGY AND VOLATILITY INDICES
Financial instability has serious negative consequences on the financial market. It is directly related both to the «bubbles» of prices for financial assets during the period of boom and boom, and to their collapse during exchange falls. Sudden changes in prices, the formation of price bubbles and systemic risks, as well as increased uncertainty, can be triggered by various factors, among which are financial innovations and sharp changes in monetary policy. The author considers volatility as a function of the gap between expectation and reality. The proposition that the growth of volatility is associated with the growth of long tails is advanced. A measure of volatility is the deviation of the standard variance. The article discusses the main volatility indices of stock exchange prices. The author offers a debatable approach to some aspects related to the analysis of internal and external uncertainties in the financial market and the parameterisation of volatility, as well as the impact of volatility on capital overflows. The author hypothesises the negative impact of price fluctuations on capital overflows and equalisation of profit margins between countries. It is also put forward that the analysis of the volatility of financial markets allows us to clarify the relationship between the hypothesis of an effective market and behavioural finance.