THE STOCK MARKET RETURNS IN TERMS OF OIL PRICE VOLATILITY
Nowadays, in many developed countries, stock markets are exceptionally well known and effectively work. Moreover, stock markets are increasingly driven by oil prices. For oil exporting countries, stock market works as follows: oil is growing - stocks are moving the same way, oil is falling - stocks are also falling. The paper deliberates the impact of oil prices on the stock market returns in both types of countries: oil - exporting and oil - importing as well. High oil prices have a positive effect on oil-exporting countries. The rise in oil prices provides the country with taxes and customs duties, which form the basis of all budget revenues. Therefore, high oil prices cause an increase in orders and productions not only in industries directly related to the oil industry, but also in those that do not even have a direct relationship to oil. The article finds reasons of the dependence of stock market returns from oil price volatility shocks.