Risks Of Investing In The Russian Stock Market: Lessons Of The First Decade
The modern history of the Russian stock market has mirrored ups and downs of the country's transition as well as swings in investor perceptions. In this paper, the authors describe the evolution of the Russian stock market over its first decade, with particular attention to the risk factors driving stock returns. First, they analyze the development of the institutional infrastructure and dynamics of the market's size and liquidity measured by the number of listed and traded stocks, depositary receipts and IPOs as well as trading volume in the local stock exchanges and abroad. Then, they examine major political and economic events, which influenced the investor perceptions of the country risk and were reflected in stock prices.