摘要：
The ownership of over 1600 firms in the Czechoslovak Socialist Republic
has been transferred to the private sector in the early 90’s.
Twelve years later, less than 5% of the firms are still public companies
and it is estimated that the assets of over 90% of the firms have
been stripped and sold to various operators [1-5]. When governments
decided to privatize state owned enterprise and distribute shares
to the citizens, it needs to solve two problems. The first is how
to level the playing field for the disadvantaged citizens, who are
less sophisticated and too diverse to organize against expropriation
by others. The second is to obtain new financing for the privatized
firms. We propose an original scheme in which the less sophisticated
citizens make ‘sidecar’ investment along side the sophisticated,
but with a right to redeem their shares. The scheme assures the
citizens do not misallocate funds to less valuable firms, or pay
more than what the sophisticated pay. It also align the interests
of the citizens and the sophisticated investors such as investment
funds.
