The Difference in the Behaviour of Domestic and Foreign Private Investors in the Russian Stock Market

2014 ◽  
Author(s):  
Alexander E. Abramov
Keyword(s):  
Stock Market ◽  
The Difference ◽  
Russian Stock Market ◽  
Private Investors

scholarly journals Building a private investor's portfolio on the stock market

2020 ◽  
Vol 26 (5) ◽  
pp. 1151-1169
Author(s):  
M.Zh. Galustyan ◽  
I.V. Sycheva
Keyword(s):  
Stock Market ◽  
Methodological Approach ◽  
Minimal Risk ◽  
The Sustainable Development ◽  
Private Investor ◽  
Russian Stock Market ◽  
Private Investors ◽  
Stock Market Trading

Subject. This article deals with the issues of involvement and participation of private investors in stock market trading. Objectives. The article aims to systematize stock risks in terms of improving the quality of private investor risk management and develop a scientific and methodological approach to the construction of a private investor's portfolio on the stock market, which helps minimize risk in various stock trading strategies. Methods. For the study, we used the methods of logical and statistical analyses, correlation, and classification. Results. The article presents a classification of stock market risk, helping apply the criteria of quantitative assessment and source of risk. The developed methodology helps a private investor build a portfolio with minimal risk on the Russian stock market. Conclusions. The existing methods to identify a number of risks are incorrect and need to be refined. For the sustainable development of the country's stock market, it is necessary to develop new and disseminate the current methods to reduce stock risk for the private investor. Based on the presented classification of stock risk, it is possible to develop other new effective methods.

scholarly journals Female investors in the stock market: a look from Russia

2020 ◽  
Vol 186 (11-12) ◽  
pp. 58-65
Author(s):  
Boris Podgorny ◽  
Keyword(s):  
Stock Market ◽  
Social Aspects ◽  
Social Characteristics ◽  
Investment Strategies ◽  
Gender Ratio ◽  
Private Companies ◽  
Average Monthly Income ◽  
Russian Stock Market ◽  
Private Investors ◽  
Investment Behaviour

With the growing impact of the Russian stock market on economic processes in the country, there arises a need for detailed and systematic information on various social aspects, including the existing and projected number of investors, their gender ratio, social characteristics and investment behaviour. The article presents data on the gender ratio of private investors, as well as detailed characteristics of Russian females investors and their investment strategies. It is shown that the Russian stock market is moving towards gender balance. The largest number of females investors belongs to the age of 25-34. Most of them live in cities and work as employees of private companies. One half of female investors have an average monthly income per family member of less than USD 350. Nowadays, 25 years after the Russian privatization, about one third of all females investors have a negative opinion about this process and its results. Russian females investors have gone through the following investment strategies: about 40% have stopped operations, becoming formal investors; about one third have opened individual investment accounts; the others are divided into the following categories: investors, inactive traders, intraday traders and scalper traders. There exist at least two problems, the solution of which will contribute to the development of the market and increase the number of private investors. They include a limited number of issuers whose shares are available on the organized Russian stock market and the lack of offers to invest in real projects.

IIA - a Step Forward, Giving a Leap into the Future

2021 ◽  
Vol 13 (3-2) ◽  
pp. 266-280
Author(s):  
Nikolay Anokhin ◽  
◽  
Nina Protas ◽  
Egor Shmakov ◽  
◽  
...  
Keyword(s):  
Stock Market ◽  
Local Level ◽  
The State ◽  
Stages Of Development ◽  
Financial Instrument ◽  
Advantages And Disadvantages ◽  
Regional Aspect ◽  
Russian Stock Market ◽  
Private Investors

The study examines all aspects of individual investment accounts as a long-term financial instrument. The authors analyze the advantages and disadvantages of this tool for private investors and the state, give the main indicators of the development of IIA and the stock market. The paper gives the forecast of the dynamics of the development of the Russian stock market and compares it with the stages of development of the American one. The authors define the new conditions of the “game” and give characteristics of qualified and unqualified investors. The authors pay special attention to the regional aspect, determine the key directions of the development of IIA at the local level. In the conclusion, the ways and prospects of its development are proposed. Individual investment account is investigated as a long-term financial instrument.

scholarly journals The habitus of the Russian stock market private investors

2016 ◽  
Vol 160 (7-8) ◽  
pp. 111-115
Author(s):  
Boris Podgorny ◽  
Keyword(s):  
Stock Market ◽  
Russian Stock Market ◽  
Private Investors

scholarly journals Determinants of Private Investors’ Behavior on Russian Stock Market

2020 ◽  
Vol 15 (3) ◽  
pp. 8-43
Author(s):  
Alexander Abramov ◽  
Alexander Radygin ◽  
Maria Chernova
Keyword(s):  
Stock Market ◽  
Interest Rates ◽  
Stock Exchange ◽  
Equity Premium ◽  
Real Income ◽  
Stock Exchanges ◽  
Saint Petersburg ◽  
Russian Stock Market ◽  
Private Investors ◽  
Foreign Assets

The article explores behavior features of different group of private investors on the Moscow and Saint Petersburg stock exchanges. It was found that the change in the size of the biggest group of registered broker clients on Moscow Exchange depended heavily on growth of real income and key characteristics of passive forms of income, such as deposit rates, government bond returns and stock dividend yield. Active broker clients on the Moscow stock exchange mainly focused on more speculative factors, such as equity premium, equity volatility, foreign stocks’ returns and exchange rate. The growth of individual investment accounts depended on factors of both active and speculative forms of income. The quantity of broker clients on Saint-Petersburg Exchange relied on an even wider set of factors, which included not only risk and returns on national markets, but also characteristics of foreign assets and exchange rates. The two Russian exchanges are interrelated. The bond and equity premium growth makes the national market more attractive than foreign assets. The expansion of private investors on the stock market in Russia, which began in 2018, is explained not only by a search for other investment instruments apart from deposits, especially under the ongoing decline in interest rates, but also by a growing interest in individual investment accounts. The latter represent a positive example of state influence on people’s savings through tax policy. Another factor of the raise of private investments was the implementation of modern investment platforms and active promotion of broker services by major banks. The financial crisis which begun in March 2020 can become a serious challenge for millions of private investors who had opened accounts in the previous two years.

scholarly journals DYNAMIC LINKAGES BETWEEN STOCK MARKETS: EVIDENCE FROM USA, GERMANY, CHINA AND RUSSIA

2021 ◽  
Vol 2 ◽  
pp. 95-101
Author(s):  
Rogneda Vasilyeva ◽  
Valentin Voytenkov ◽  
Alina Urazbaeva
Keyword(s):  
Stock Market ◽  
Hedge Funds ◽  
Stock Exchange ◽  
Cash Flows ◽  
Cointegration Analysis ◽  
Impulse Response Functions ◽  
Causality Test ◽  
Main Hypothesis ◽  
Russian Stock Market ◽  
Private Investors

Currently, financial markets are growing rapidly, which increases the necessity to examine the financial sector. Considering the Russian Federation, the amount of private investors has doubled in Russia since the beginning of 2020 (Finam, 2020). It is important to realize how cash flows between the largest stock market indices. The main hypothesis of the research suggests that the U.S., Germany, and China markets result in significant changes in the Russian stock market. The research objective is to determine the degree of the Russian stock market dependence on the markets of developed and developing countries using methods of econometric analysis. Daily data on S&P500, DAX30, Hang Seng, and Moscow Exchange Index from January 1, 2015, to December 31, 2019, were taken. The research method chosen is a cointegration approach, including the construction of vector autoregression and vector error-correction models and the application of Impulse Response Functions. The results of the Granger causality test reveal no significant interconnection between the Dax30 and the Moscow Stock Exchange Index; the S&P500 affects the Moscow Exchange Index, whereas the Russian stock market affects the Chinese one. According to the cointegration analysis, there is a strong positive influence of the American stock market on the Russian stock market, which does not decrease during the researched period. The stock indices of China and Germany show a weak quantitative influence and mixed dynamics for a long time. The results of the research could be used as recommendations for making management decisions by private investors, hedge funds and managers of large companies.

How to Assure Stable Development in Unstable Financial Environment?

2007 ◽  
pp. 4-26 ◽  
Author(s):  
M. Ershov
Keyword(s):  
Stock Market ◽  
Developed Countries ◽  
Market Liquidity ◽  
Market Mechanisms ◽  
Russian Economy ◽  
The Developed Countries ◽  
Russian Stock Market ◽  
Stable Development ◽  
Financial Environment

Growing involvement of Russian economy in international economic sphere increases the role of external risks. Financial problems which the developed countries are encountered with today result in volatility of Russian stock market, liquidity problems for banks, unstable prices. These factors in total may put longer-term prospects of economic growth in jeopardy. Monetary, foreign exchange and stock market mechanisms become the centerpiece of economic policy approaches which should provide for stable development in the shaky environment.

Pricing models of shares of Russian companies and their practical application

2019 ◽  
pp. 48-76 ◽  
Author(s):  
Alexander E. Abramov ◽  
Alexander D. Radygin ◽  
Maria I. Chernova
Keyword(s):  
Stock Market ◽  
Institutional Investors ◽  
Factor Model ◽  
Investment Strategies ◽  
Pricing Models ◽  
Foreign Portfolio Investment ◽  
Market Portfolio ◽  
Stock Market Performance ◽  
Long Time ◽  
Russian Stock Market

The article analyzes the problems of applying stock pricing models in the Russian stock market. The novelty of the study lies in the peculiarities of the methodology used and the substantive conclusions on the specifics of the influence of fundamental factors on the pricing of shares of Russian companies. The study was conducted using its own 5-factor basic pricing model based on a sample of the most complete number of issues of shares of Russian issuers and a long time horizon, from 1997 to 2017. The market portfolio was the widest for a set of issuers. We consider the factor model as a kind of universal indicator of the efficiency of the stock market performance of its functions. The article confirms the significance of factors of a broad market portfolio, size, liquidity and, in part, momentum (inertia). However, starting from 2011, the significance of factors began to decrease as the qualitative characteristics of the stock market deteriorated due to the outflow of foreign portfolio investment, combined with the low level of development of domestic institutional investors. Also identified is the cyclical nature of the actions of company size and liquidity factors. Their ability to generate additional income on shares rises mainly at the stage of the fall of the stock market. The results of the study suggest that as domestic institutional investors develop on the Russian stock market, factor investment strategies can be used as a tool to increase the return on investor portfolios.

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