Author: Sergey A. Aleksandrov, postgraduate of Financial Markets and Banking Dept; Viktor P. Ivanitskiy, Dr. Sc. (Econ.), Prof. of Financial Markets and Banking Dept.

Abstract: The paper studies the definition of the concept “efficiency” both in the contemporary economics generally and while making investment by carrying out transactions with securities particularly. The article presents a brief review of the research approaches to the assessment of transactions’ efficiency; considers advantages and disadvantages of the methods of its calculation in export-import and trade operations, in the process of capital construction, in online trading etc. The authors describe such a frequently applied approach to efficiency calculation as determination of yield and suggest an alternative method to assess the efficiency of transactions on stock market by determining the parameter of internal efficiency. The method features simplicity of calculations and a possibility to compare trade strategies.

Keywords: effectiveness; yield; transaction; investment; trading; export; import; capital construction.