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Junk Securities: Cheese in the Mouse-Trap or Uncut Diamond

https://doi.org/10.21686/2413-2829-2021-4-162-168

Abstract

The article shows that junk securities never demonstrate a smooth trend to rate growth and any jump or drop usually happen by sharp change in the trend. The investor making deals on OTC call-boards should realize that 95% of dark market shares cannot pass analysis and the majority of investors who deal with dark market shares would lose money. Sometimes after good results shares on dark market can go ‘darker' and are not reported for a long time. It resembles ‘leaving on a high pitch'. But occasionally figures can become worse, therefore the company would not like to acknowledge the fact. Junk shares always imply high risk, as in the majority of cases there is no reliable information about the organization issuing shares and securities themselves. The authors point out that in case of placement at outside markets external audit is not carried out and real quotation could differ from those presented. At the same time it is rather difficult to analyze junk shares because of low exchange purchase, as few investors buy securities with low rating.

About the Authors

I. V. Balashova
Krasnodar branch of the Plekhanov Russian University of Economics
Russian Federation

Irina V. Balashova - PhD, Assistant Professor, Head of the Department for Economics and Management of the Krasnodar branch of the PRUE.

23 Sadovaya Str., Krasnodar, 350002.



T. A. Tereshchenko
Krasnodar branch of the Plekhanov Russian University of Economics
Russian Federation

Tatyana A. Tereshchenko - PhD, Assistant Professor of the Department for Finance and Credit of the Krasnodar branch of the PRUE.

23 Sadovaya Str., Krasnodar, 350002.



References

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Review

For citations:


Balashova I.V., Tereshchenko T.A. Junk Securities: Cheese in the Mouse-Trap or Uncut Diamond. Vestnik of the Plekhanov Russian University of Economics. 2021;(4):162-168. (In Russ.) https://doi.org/10.21686/2413-2829-2021-4-162-168

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ISSN 2413-2829 (Print)
ISSN 2587-9251 (Online)