Kovalenko Y. S.

Scientific supervisor L. Y. Obraztsova

The creation of civilized share market as factor of innovative development of Russia

The Westen countries have saved up great experience in strategy frameworks of "national capitalism", targeted at innovative development of economy. The creation of civilized share market was the major element of this strategy. In this system the stock exchange is the major tool of self-organization of the financial streams focused on those corporations of national economy in which the maximum profitability is reached and safety of the invested money is guaranteed. It is necessary to underline that competitiveness of corporation is defined by its ability to introduce the achievements of the scientific and technological progress.

The greatest success in this strategy has been made by the US economy. Not only because of the developed stock exchange, but also because of a correct tax policy of the government. The major factor of innovative development of US economy is the economic culture of citizens who consider the operations on the stock exchange as a powerful tool of long-term investment. The majority of shareholders in the USA are small investors, direct control of the company is considered as 10 % share holding. It is necessary to notice, that in the USA there is a special legislation limiting possibility of officials and managers of the companies to trade on the share market. J. Soros noticed that in comparison with other markets, the share market meets the criterion to "an absolute competition" the best way.

Cleanliness and transparency of the share market stimulate innovative development of economy, it provides demand for shares of competitive corporations, and also attracts the financial resources for the development. The main advantage of such way of money attraction is no necessity to return and percent payment, and also the possibility of additional releases remains. If Intel Corporation has 6 532,00 million shares, and the current price of a share is about 25 dollars, it is easily to present what money could be involved, issuing only 5 or 10 % from available shares

The basic problem of development of the share market in Russia is that it is supervised by small group of professional speculators who first get access to the relevant information and can cardinally influence share prices, even state companies. It turns out, that our share market does not carry out the function of money accumulation of the population. Companies which are quoting on the Moscow Interbank Stock Exchange and Russian Trading System, completely depend on large players. It is necessary to notice, that only 40 % of our companies are chosen for the IPO domestic platforms. Real national IPO can be achieved only by such giants as Rosneft and WTB

The question is: how to make our domestic platforms markets of "an absolute competition"? How to create a civilized share market which would allow Russian companies to involve freely the necessary sums of money and not to depend on game of large speculators? The best way is to stimulate population for to the exchange activity.

Participation of the population in exchange activity depends, firstly, on financial literacy. Many people know, what the share is, but not everyone will dare to use this tool. In the developed countries there is an "investor information packet", which could be requested in the company or received through the Internet. According to the financial report of the company investors define: speed of sales growth, how company finances it's growth, how many credits it took, how effectively it collects accounts receivables, what profit is received from sale of the products and services, etc. Comparing the companies with their competitors on the branch, investors find out companie’s relative position. Very few people from domestic investors resort to such calculations, the certain part of people basically does not imagine the stock exchange structure. For the state the best variant to increase financial literacy could be: social advertising, films, telecasts, teaching at school the basics of economic knowledge.

The second aspect - mistrust to the market. Investors are frightened off by absence of elementary laws, for example, the law about raiders. The trust has been influenced by unsuccessful national IPO's of such giants as Rosneft and WTB. It is possible to give a better example with another large company. In January (14.01.08) the shares of the semi state company Gazprom coasted 365 points on the maximum, and in February (08.02.08), 281 on a minimum, with the absence of any fundamental reasons for such jumps. It is clear, that any minority shareholder does not want to lose almost third of savings in one month, investing in the largest and semi state company. There are a lot of similar examples, which strongly undermine trust to the market in whole. Maintenance the courses of the largest national companies, on certain minimum, proceeding from certain fundamental factors would be the best policy of the state in such conditions. It is natural, that the trust to the market will be only after acceptance of corresponding laws (about raiders, about insiders and others).

The third is the absence of access to the market or the market itself. The investors in a region do not always have a possibility buy shares of blue chips. Absence of stock exchanges in the Russian regions makes people to buy shares through banks. Banks as a rule are establishing a huge spread and provide very limited quantity of shares for investing. Creating regional exchanges for purchasing and selling stocks would be the best variant. An interesting variant could be a creation of the state company for long-term and intermediate term share investing in on-line mode.

The civilized share market could become a great advantage for the domestic companies on a world scene. Stock exchange establishing, as convenient tool for money attraction, is one of the most important steps in the creation of the innovative economy.

Тезисы подготовлены при финансовой поддержке РГНФ в рамках научно-исследовательского проекта «Формирование экономической культуры населения в переходный период на примере Ивановской области», проект № 08-03-54702а/Ц.