Assessing the appropriateness of trading in FP shares on ROTC

Pros

• Fast correlation between supply and demand of FP shares
• Eases transactions between private shareholders and investors
• Expected rise in demand for FP shares in the market
• The trading process would be strictly managed by brokers, so the buyers and the sellers’ identities will be confidential
• Increased transparency on transactions: open information about share prices

Cons

• Limited transparency of the ROTC market in comparison with the regulated market
• The non-regulated character of the market might bring up uncertainties and operational risks
• The share price, though possibly higher, might be lower than the optimum
• The history of transactions on ROTC might affect the future price-setting process on the stock market
• The investment management company selected to manage Fondul Proprietatea announced its intention to list the Fund on The Bucharest Stock Exchange in approx. 1 year, which means only a short period of time would be left for trading in FP shares on ROTC