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No this is not a 'normal' blocking of trading in securities due to turbulance in the market. It is still allowed to buy Russian securities. It is also allowed t
by misja111 5y ago
No this is not a 'normal' blocking of trading in securities due to turbulance in the market. It is still allowed to buy Russian securities. It is also allowed to Russians to sell Russian securities. The Russian exchange has specifically forbidden foreigners to sell Russian shares.
https://www.politico.eu/article/russia-central-bank-bans-sales-securities-foreigners/#:~:text=The%20Russian%20central%20bank%20immediately,cardinal%20change%20in%20external%20conditions.%E2%80%9D https://www.politico.eu/article/russia-central-bank-bans-sal...
- jussij 5y agoSo if this is the case (and I don't doubt what you are saying) then that means Russia has decided to turn it's functioning market into something that is no longer a market. Only because we now have a situation where any foreigner holding a Russian security can no longer sell that security. That action has instantly made the security worthless (i.e. value of zero) to the foreigner. So while these actions might stop the price drop in the short term, it will never last only because the market created is no longer reflecting the true value of the security. They are now only being held artificially high because no one can buy and sell them.
- xxs 5y agoIf you can't sell something, it has inherent value of zero.