Fair pricing of securities, in line with a particular economys requirements, is essential for sustainable growth in a financial market.
Given the existing ill-founded practice of estimating the fair value of equities based on their stock prices, the notion of fair equity value in organised trading needs to be verified and validated by both the regulator and market participants.
What determines the confidence of the Bank of Russia and market participants in the price established in exchange trades? Who creates the price: professional analysts and traders, or retail investors?
What is the role of domestic investors as a source of fair pricing? Why is it that the fundamental value, exchange price, and fair value are not the same thing? How is fair value affected by factors such as access to insider information and external shocks of a political or non-market nature? Is it possible to define the criteria for market activity and liquidity, and determine quantitative values for them?