Theoretical and methodological foundation of the securities portfolio policy in the emerging market conditions

The article presents the history and the current state of the theoretical and methodological foundation of the securities portfolio policy in the emerging market conditions. The authors consider the theoretical approaches to the price distortion mechanism, identification and overcoming of price distortions. The authors not only give the theoretical description of the price distortion, but also suggest possible methodological approaches to the design and assessment of the financial instruments and the corresponding institutional framework in order to enhance the stability of both developing and developed financial markets.