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ИД «Финансы и кредит»






Finance and Credit

Building a private investor's portfolio on the stock market

Vol. 26, Iss. 5, MAY 2020

PDF  Article PDF Version

Received: 18 March 2020

Received in revised form: 1 April 2020

Accepted: 15 April 2020

Available online: 28 May 2020

Subject Heading: Securities market

JEL Classification: G11, G14, G17

Pages: 1151–1169


Galustyan M.Zh. Tula State University (TulSU), Tula, Russian Federation

ORCID id: not available

Sycheva I.V. Tula State University (TulSU), Tula, Russian Federation

ORCID id: not available

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.

Keywords: stock market, stock market risk, private investor, volatility, liquidity


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