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Turkish stock exchange is an institution that brings together investors and assures that trading operations are conducted in a safe, honest, and competitive manner. Istanbul stock exchange also known by its abbreviated form BIST, is the Turkish stock exchange. This organization is the only stock exchange organization in Turkey.
On April 5, 2013, the institution that first began operations under the name Istanbul Stock Exchange (ISE) changed its name to Borsa Istanbul. Every stock trader in Turkey operates under the framework of Borsa Istanbul (BIST). The Istanbul Stock Exchange is overseen by a nine-person board. The more the success and volume of Borsa Istanbul, the greater the liquidity and resources offered to the economy.
History of Istanbul stock exchange
Istanbul Stock Exchange was established in 1926 with a law. Continuing its activities, the ISE became more active in the Turkish financial markets with the enactment of the Capital Markets Law in 1981.
Following the establishment of the CMB, the then Prime Minister Turgut Özal issued the Decree on the Stock Exchanges in 1984, and the team to establish the stock exchange had to be formed. Following the legal and legal regulations, the Istanbul Stock Exchange (IMKB) started its operations on January 2, 1986 under the full chairmanship of Muharrem Karslı.
How are transactions made in Borsa Istanbul
Individuals who want to invest in Istanbul Stock Exchange shares should first create a special account with a broker or a Turkish bank. Investors who open an account can determine the products they want to trade. They can send purchase and sale orders for the product in question in writing, verbally, over the internet or by telephone. These orders of the investors in the share market are finalized by Takasbank .
Investors can monitor their portfolios both from their own accounts and from the account opened on behalf of the customer at the Central Registry Agency.
What is Borsa İstanbul’s Operational Purpose
BIST strives to establish a competitive, dependable, and stable environment for the trading of values that are eligible for trading on the stock market. In this regard, it coordinates the purchase and sale orders of a variety of securities within the specified framework. The BIST is required to determine and announce the stock market’s pricing. Announcing these rates can potentially generate new markets, businesses, and platforms. Borsa Istanbul is responsible for market management and operation. The Capital Markets Board conducts an audit to see if the BIST’s activities align with its mission (CMB).
What is BIST 30
Many people who have just started investing ask, “What is BIST 30 ” wonders about the answer. To this question; It is possible to answer “Indicator representing the thirty most valuable companies traded on Borsa Istanbul ”. The BIST 30 index is determined by measuring the stock performance of the companies traded in Borsa Istanbul with the highest volume and market value.
BIST 30 shares; are ranked from largest to smallest in line with the market value of the companies’ shares in circulation and their daily average transaction volumes. This list is re-determined every three months . BIST 30 companies are top of the list among venture capital investment trusts.
The factor that creates the difference between BIST 30 and BIST 100 is the index and share ratio. BIST 100 index is the basic measure of the stock market. Companies included in the BIST 30 chart are also included in the BIST 50 and 100 indices.
What are BIST 30 Stocks
The most valued shares traded on the Turkish stock exchange are BIST 30 shares. The companies on the BIST 30 share list are categorized as A, B, C, and D. The number of shares in real circulation is the decisive element for which group the firms will be placed in. The stocks in the A and B groups represent the corporations with the biggest market capitalization and circulation share. This group’s shares are investments with extremely high returns for investors.
The BIST 30 shares with the lowest prices are in groups C and D. During the calculation of the BIST 30 index, the A and B group stocks are examined.
Due to their modest trading volumes, equities from groups C and D are riskier investment vehicles. To participate in the index review, shares from groups C and D must be upgraded to groups A or B. Unless their existing circumstances change, they will be unable to contribute to the calculation of the BIST 30 index.
BIST 30 cheapest shares belong to companies in groups C and D. While calculating the BIST 30 index, the shares included in the A and B groups are evaluated. C and D group stocks are riskier investment instruments due to their low trading volumes. C and D group shares must be upgraded to A or B group in order to participate in the index evaluation. Unless there is a change in their current situation, they will not be able to participate in the calculation of the BIST 30 index.
What is BIST 100
BIST 100 is the index that identifies the 100 most valuable equities traded on the Borsa Istanbul. The equities included in this index are decided based on market and trading volume criteria. The relevant rating serves as an indicator for measuring the market’s size.
Borsa Istanbul, formerly known as IMKB, determines the BIST 100 shares (Istanbul Stock Exchange). XU100 is the transaction code for ISE 100 shares. Local and international investors track the performance of the index’s stocks. The BIST 100 is a ranking that provides comprehensive information regarding the stock market. By monitoring this indicator, it is possible to obtain information about Turkish market businesses with a high initial public offering. The index in question might also provide insight into the economic sectors that dominate the country.
How many companies are registered in the Turkish stock exchange
Currently, the number of companies traded on the Turkish stock exchange is 568. Borsa İstanbul management continues to work at full speed to increase this number.
Trading Hours and Sessions at the Turkish stock exchange
Transactions in Borsa Istanbul continue on official working days, 5 working days a week. On a daily basis, trading hours are between 09:15 and 17:40.
During this period, trading hours consist of two sessions. Opening session transactions are between 09:15 and 12:30, closing session transactions are between 14:00 and 17:40.
One-day session and trading hours in Borsa Istanbul are as follows:
1st Session (09:15-12:30)
- Opening Session: 09:15-09:35
- Order Collection : 09:15-09:30
- Determination of Opening Prices and Opening Procedures: 09:30-09:35
- Market Maker-First Quotation Entry: 09:30-09:34
- System-Automatic First Quotation Assignment : 09:34-09:35
- Continuous Auction (SM) and SM Method with Market Maker: 09:35-12:30
- Single Price Session: 09:35-12:30
- Order Collection : 09:35-12:30
- Determination of Single Price: 12:30 (+)
2nd Session (14:00-17:40)
- Opening Session: 14:00-14:15
- Order Collection: 14:00-14:10
- Determination of Opening Prices and Opening Procedures: 14:10-14:15
- Market Maker-First Quotation Entry:14:10-14:14
- System-Automatic Initial Quotation Assignment: 14:14-14:15
- Continuous Auction (SM) and SM Method with Market Maker: 14:15-17:30
- Single Price Session: 14:15-17:33
- Order Collection: 14:15-17:30
- Determination of Single Price: 17:30-17:33
- Closing Session: 17:30-17:40
- Order Transfer: 17:30-17:33
- Order Collection: 17:33-17:36
- Determination of Closing Prices: 17:36-17:38
- Trades at Closing Price/Single Price: 17:38-17:40
IPO in Turkish stock exchange (BIST)
n order for a company to be traded on the BIST, the public offering prospectus must be approved by the Capital Markets Board and the public offering of the companies must be completed. Public offering can be defined as the sale of shares to a large number of previously unknown investors through calls and announcements.
Public offering is defined as a general call made by any means for the purchase of Capital Market instruments and the sale of shares made following this call. The most difficult stage for companies in the process of going public is the decision stage. After the decision to go public, the next steps are easier. There are different conditions that lead a company to make an IPO decision:
The company may choose to finance its growth through an IPO.
In cases where the company’s competitors are public companies, the perception that public companies are more financially sound may create a competitive disadvantage for non-public companies.
Venture capital investment trusts can choose to realize their profits by expanding and offering the companies they have brought to a certain stage to the public.
The company may use share-based performance plans to motivate and encourage its employees.
After the public offering, the company finds more space in the economy pages and media, and its credibility increases with investors and financial institutions.
The company, whose public offering is completed by either the Bookbuilding Method or the Turkish Stock Exchange sales method, begins to be traded on the Borsa Istanbul. After this process, public companies have obligations to fulfill. These obligations include independent auditing, distribution of dividends, public disclosure, and establishment of an investor relations department.
After the public offering is completed, the companies are listed/recorded in Borsa İstanbul in order for their shares to be traded in the Borsa İstanbul markets.
After this process, the shares of the relevant companies can be bought and sold by the investors. After the trades, the price is determined according to the supply and demand balance and the transactions continue.
What is the currency of the Turkish stock market
Turkish lira is the only currency used for all transactions in the Turkish stock market.
How to buy Turkish stocks
If you are inside Turkey, you can easily use MIDAS as a broker To buy from Istanbul stock exchange.
If you are outiside Turkey, you can easily buy iShares MSCI Turkey ETF (TUR), which covers most of the stocks in the BIST 100.
