Stock market in turkey

1. BY:-
SALMAN AGHA

2.  A stock market or equity market is a public entity (a loose network of economic
transactions, not a physical facility or discrete entity) for the trading of
company stock (shares) and derivatives at an agreed price; these are securities listed
on a stock exchange as well as those only traded privately.
 The size of the world stock market was estimated at about $36.6 trillion at the
beginning of October 2008. The total world derivatives market has been estimated at
about $791 trillion face or nominal value, 11 times the size of the entire world
economy. The value of the derivatives market, because it is stated in terms of notional
values, cannot be directly compared to a stock or a fixed income security, which
traditionally refers to an actual value. Moreover, the vast majority of derivatives
'cancel' each other out (i.e., a derivative 'bet' on an event occurring is offset by a
comparable derivative 'bet' on the event notoccurring). Many such relatively illiquid
securities are valued as marked to model, rather than an actual market price.
 Market participants include individual retail investors, institutional investors such as
mutual funds, banks, insurance companies and hedge funds, and also publicly traded
corporations trading in their own shares. Some studies have suggested that
institutional investors and corporations trading in their own shares generally receive
higher risk-adjusted returns than retail investors.

3.  The Borsa Istanbul (abbreviated as BIST) is the sole exchange entity
of Turkey combining the former Istanbul Stock Exchange (ISE)
(Turkish: İstanbul Menkul Kıymetler Borsası, IMKB), the Istanbul Gold
Exchange (Turkish: İstanbul Altın Borsası, İAB) and the Derivatives
Exchange of Turkey (Turkish: Vadeli İşlem Opsiyon Borsası, VOB) under one
umbrella. It was established as an incorporated company with a founding
capital of 423,234,000 (approx. US$240 million) on April 3, 2013, and
began to operate on April 5, 2013. Its logo will be the
traditional Ottoman mark for Istanbul, the tulip. Its slogan will be “worth
investing”.
 Shareholders of Borsa Istanbul are: 49% Government of Turkey, 41%
IMKB, 5% VOB, 4% IMKB members, 1% IMKB brokers and 0.3% IAB
members. It is planned that all the Government-owned shareswill be offered
for sale. Among the executives of the nine-member board of directors, which
is presided by former chairman of ISE İbrahim Turhan, are former deputy
chairman of ISE Osman Akyüz, former head of VOB Işınsu Kestelli, Merrill
Lynch Investment Bank General Manager Hüseyin Kelezoğlu and Chairman
of Turkish Association of Capital Market Intermediary Institutions Attila
Köksal

4.  The Istanbul Stock Exchange (ISE) was the only corporation
in Turkey for securities exchange established to provide trading in equities, bonds and
bills, revenue-sharing certificates, private sector bonds, foreign securities and real
estate certificates as well as international securities. The ISE was founded as an
autonomous, professional organization in early 1986. It is situated in a modern
building complex in the quarter of İstinye, on the European side of Istanbul, since
May 15, 1995. The chairman and chief executive officer of the ISE is Dr. İbrahim
Turhan, who was appointed by the government on January 1, 2012.
 ISE is home to 320 national companies. Trading hours are 09:30–12:30 for the first
session and 14:00–17:30 for the second session, on workdays. All ISE members are
incorporated banks and brokerage houses.
 ISE price indices are computed and published throughout the trading session while the
return indices are calculated and published at the close of the session only. The indices
are: ISE National-All Shares Index, ISE National-30, ISE National-50, ISE National-
100, Sector and sub-sector indices, ISE Second National Market Index, ISE New
Economy Market Index and ISE Investment Trusts Index. The ISE National-100 Index
contains both the ISE National-50 and ISE National-30 Index and is used as a main
indicator of the national market.

5.  The origin of an organized securities market in Turkey has its roots in the second half of the 19th
century. The first securities market in the Ottoman Empirewas established in 1866 under the name
of "Dersaadet Securities Exchange" following the Crimean War. Dersaadet Exchange also created
a medium for European investors who were seeking higher returns in the vast Ottoman markets.
Following the proclamation of the Turkish Republic, a new law was enacted in 1929 to reorganize
the fledgling capital markets under the new name of "Istanbul Securities and Foreign Exchange
Bourse".
 Soon, the Bourse became very active and contributed substantially to the funding requirements of
new enterprises across the country. However, its success was clouded by a string of
events, including the Great Depression of 1929 and the impending World War II abroad which had
taken their toll in the just developing business world in Turkey. During the industrial drive of the
subsequent decades, there was a continuous increase in the number and size of joint stock
companies, which began to open up their equity to the public. Those mature shares faced a strong
and growing demand from mostly individual investors and some institutional investors.
 The early phase of the 1980s saw a marked improvement in the Turkish capital markets, both in
regard to the legislative framework and the institutions required to set the stage for sound capital
movements. In 1981, the "Capital Market Law" was enacted. The next year, the main regulatory
body responsible for the supervision and regulation of the Turkish securities market, the Capital
Markets Board based in Ankara, was established. A new decree was issued in October 1983
foreseeing the setting up of securities exchanges in the country. In October 1984, the "Regulations
for the Establishment and Functions of Securities Exchanges" was published in the Official
Gazette. The regulations concerning operational procedures were approved in the parliament and
the Istanbul Stock Exchange was formally inaugurated at the end of 1985.

6.  The ISE is a full member of
 World Federation of Exchanges (WFE),
 Federation of Euro-Asian Stock Exchanges (FEAS),
 International Securities Services Association (ISSA),
 International Capital Market Association (ICMA),
 European Capital Markets Institute (ECMI),
 World Economic Forum (WEF),
 Federation of European Securities Exchanges (FESE) and
 An affiliate member of International Organization of Securities
Commissions (IOSCO).

7. Established in 1981, a result of the enactment of the Capital Market Law No. 2499, the
first regulatory and supervisory board of the Capital Markets Board of Turkey (CMB ) is
celebrating 30th years of age. Assembly 30 on the occasion of the anniversary of the event
titled'','' Financial Markets Regulatory Reform, and according to the information
provided, the arrangements began in the 1980s as a result of continuing the process of
Turkey entering the rapid development of the capital markets, there was a significant
improvement on both primary and secondary markets. In this context, Number of shares
of companies traded in the Istanbul Stock Exchange was founded at the end of 1986 was
80 at the end of 2011 was 371'e. annual trading volume of stocks traded on the Istanbul
Stock Exchange in 1986, 9 million ($ 13 million), while 694 billion 876 million TL in 2011
(423 billion 584 million dollars), respectively. First established in 1987, 590 by the end of
2011, the number of investment funds, portfolio value of 27 billion pounds (48.6 billion
dollars) reached. A total of 56 foreign investment fund, while the total value of their
shares in circulation in Turkey of 55 million pounds (31 million U.S. dollars). Turkey's
private pension system came into operation in 2003. As of the end of 2011 there are 165
pension funds, reaching a total value of 14.3 million pounds of funds (7.9 million). first
established in 1991 by the end of 2011, the number of securities investment trusts
27, while the market value of 690 million pounds (383 million) increased. 2,011 by the end
of the CMB was a record number of partnerships 634.Including brokerage firms and
banks 100 40 89 140 active intermediary institutions, portfolio management companies
32, 92 independent auditing firm, and 110 pieces of 6 ratings company's real estate

8.  In 2011 a total of 27, including 3 real estate investment
trust subsidiary performing IPO, capital
markets, public offerings total of 1.3 billion pounds
(840 million dollars), funding was provided. Central
Registry System and the market value of securities in
dematerialized form in December 2011 followed
amounted to 426 billion pounds from 109 million the
total number of investors in a balance rose to 3 million
709 thousand 819'a. 2011, 31.8 billion pounds (19.5
billion dollars), the domestic, 17.8 billion pounds (108
billion dollars) abroad, including 49.6 billion pounds
(30.3 billion dollars) debt instrument was issued. 3
times the current market value in 2023 is expected to
reach.

20. THANK YOU