Abstract: The development of any country is impossible without a developed stock market and its successful functioning because the stock market is a meeting place for economic entities that possess capital and participants (firms, enterprises, organizations, companies, etc.) in need of additional funds for further business activities. The stock market of Ukraine was established in 1991 after gaining independence. Its development has been influenced and continues to be influenced by numerous factors and systems that encompass both national and global levels.

Issue. An important influencing factor on the functioning of the stock market in Ukraine is the state of the financial environment. In Ukraine, this state has been unstable for a considerable period.

The research aim is to examine key indicators of the instability of Ukraine’s financial environment in the current realities (GDP, national debt, population income, inflation rate, political situation in the country) and their impact on the stock market. The economic situation of Ukraine in 2022 is also analyzed in the context of war. The more developed the stock market is, the higher the level of inflow of new investments into the country and opportunities for business and population. Additionally, the efficiency of the stock market’s operations will aid in the speed of recovery and reconstruction of both the Ukrainian economy and the country as a whole.

Research methods. The article employs analysis and synthesis, induction and deduction, scientific generalization methods in characterizing factors of financial instability, among others. The results and conclusions are based on a comprehensive (integrated) approach.