In Borsa İstanbul Equity Market equities of companies from various sectors, preemptive rights, exchange traded funds, warrants & certificates, ownership backed lease certificates, real estate certificates, participation certificates of venture capital investment funds and real estate investment funds are traded. The Market offers a liquid, transparent and secure trading environment for both domestic and foreign investors.
Trading on the Equity Market is carried out based on price and time priority, with “continuous trading”, “continuous trading with market maker” and “single price” trading methods with a fully automated electronic trading system.
The markets where the equities of the companies offered to the public for the first time are determined at the time of the listing of the company to the Exchange. In accordance with the provisions of the Listing Directive, the equities that have been listed in the relevant Equity Market segments and started to be traded are subject to evaluation as of periods approved by the General Manager and at least twice a year in accordance with the criteria determined within the scope of this Equity Market Directive Market segment and sub segment changes are made according to the results of this evaluation. The criteria for determining market segments and sub segments are included in the Equity Market Directive and Equity Market Procedure.
Primary Market
Primary Market is the market that brings together issuers (those who demand funds) and savers (those who supply funds). Primary Market transactions for the equities to be offered to the public through Borsa İstanbul is carried out between 10:30 - 13:00.
there are two methods of book-building, which are fixed price and variable price book building, in the public offerings of corporations whose shares will be traded for the first time on Borsa İstanbul Equity Market.
Please click for the new rules will be introduced regarding the orders to be involved in the distribution process and the distribution time of these orders.
Wholesale Buy Sales Transactions
Wholesale Market provides an organized, secure and transparent platform for the trading of equities in quantities of over a certain size, to predetermined and/or unidentified buyers.
Preemptive Rights Transactions
A new ticker for trading of the preemptive rights attached to a share of a traded company when it increases capital is opened for trade with an extension of “.R” for a specified time period when the rights can be used.
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Equities are negotiable instruments issued by a corporation and representing a capital share of the corporation.
Holding the equity of a corporation means being a partner of that company.
Safe and accurate flow of information is essential in the trading of equities.
Confidence, transparency and investor protection are the fundamental principles of Borsa İstanbul markets. Shareholders can reach any information about the companies traded on Borsa İstanbul via the Companies and Data pages as well as the Public Disclosure Platform.
Exchange traded funds (ETFs) are mutual funds traded on equity-exchanges, which are based on an index and aim to reflect the performance of its base index to the investors.
ETFs are issued based on an index, and invest in the securities on its base index in proportion to their weight in the index. Therefore, for example, an investor willing to invest in BIST-30 index invests in an ETF rather than purchasing the equities of the index separately, and has the opportunity to invest in that index, and benefits from the proceeds of the index.
Exchange traded funds are portfolios created by authorized intermediary institutions through the purchase of securities on the base index using the cash collected from investors. ETFs reflect the returns on the equities or other instruments (gold, bond, foreign exchange, etc.) on the base index.
The basic characteristic of ETFs is that their participation certificates can be traded on Borsa İstanbul just like equities. Exchange traded fund shares can be traded on the Borsa İstanbul Fund Market through intermediary institutions like equities.
Investing in ETFs
Exchange Traded Funds (ETFs) have become more popular recently, thanks to their high liquidity and ease of trading, as well as facilities such as risk diversification, and allowing investors to make use of the revenues in the market.
The indicator portfolio composition announced at the end of every day provides investors the opportunity to monitor the content of their investments in a transparent manner on a daily basis. Therefore, the investor is able to monitor the composition of the exchange traded fund. ETFs are traded during the session easily, in the same way as equities.
Fund Market Basics
Trading on ETF participation certificates, deemed suitable for being traded on the Exchange, is carried out with a feature code (F) on the Fund Market of the Equity Market during the trading hours of the market where the securities forming the underlying index of ETF are traded.
The base price is determined by rounding the weighted average of the transactions of the previous session to the nearest price tick as in the case of equities. In the first trading session and the session following the session in which price has not been formed in the Equity Market, base price is announced over the fund unit share price announced before the respective session by the founder and/or authorized participant.
Lot size is 1 participating share. The maximum amount of orders that can be submitted to the system at any time is determined by the Equity Market.
Unit share price of ETFs to be traded on the Equity Market is minimum TL 1.
On the ETF Market, the price margin applicable in the National Market is applied.
Special order transactions are performed as per the present rules in the Equity Market.
Price ticks applied on the ETF Market are different from those of equities.
Settlement of the fund transactions is realized on the second business day following the transaction day (T+2). Fund Share Formation and Repurchase Transactions are performed via Takasbank. Principles of these transactions are set by Takasbank and notified to the members.
All other transaction and default rules are the same as the Equity Market trading rules.
Exchange Traded Funds keep all their assets in Takasbank as in the other investment funds.
Warrants are capital markets instruments that give the holder the right, but not the obligation, to buy ('call' warrant) or to sell ('put' warrant) an underlying asset at a specified price (the 'strike' price or 'exercise' price) on or before a predetermined date where such right is exercised by registered delivery or cash settlement. The holder of a warrant buys not the underlying security itself, but the right to buy or sell such underlying security, against the payment he makes.
Warrants;
-are securitized options;
- listed on a stock exchange and traded in the relevant market segment.
- traded in the secondary market.
- settled in the same way as other securities.
-are financial instruments of type called “structured products” are not issued for financial needs of the issuers
-are solely under the responsibility of the issuer.
-entitle the holder to buy (from) or to sell (to) the issuer an underlying security, a basket of securities, or an index, on or before a particular date, at a predetermined price, against the premium he pays.
-represent a right, and not an obligation, for the holder.
The basic principles regarding the issue, issuers, registration, and trading of warrants are regulated by the Capital Markets Board of Turkey (CMB) by its Communiqué Series III No: 37 Regarding the Registration with the Capital Markets Board of Turkey and Trading of Intermediary Institutions’ Warrants at the Stock Exchange. According to the said Communiqué, warrants are traded on Borsa İstabul.
The procedures and principles regarding the listing and trading of warrants on Borsa İstabul are stipulated by İMKB's Circular no.318, dated Jan 5, 2010.
Warrants may be traded on Borsa İstabul provided that they are supported through market making activity by their issuers or the brokerage companies contracted by the issuers. In order to provide a liquid and well-regulated market, the market maker is required to give quotations continuously.
Investing in Warrants
Pricing and Valuation
Comparison: Warrants vs Options
Trading Principles
Certificates
Equity Indices
Just like warrants, certificates are financial products that impose a financial burden on issuers against the investor. The funds raised through issuing certificates are under the issuer’s personal financial responsibility. Therefore, it is important for the investor to consider factors such as financial status, payment capability, and credibility of the issuer.
While certificates shall be traded according to the same principles as warrants, with minor differences only, some trading rules may vary according to the type of certificate. Investors should pay special attention to such differences while trading certificates.
BIST Stock Indices have been created to measure the price and the return performances of group of stocks traded on Borsa İstanbul. For detailed information about BIST Stock Indices, "BIST Stock Indices Ground Rules".
Please click for BIST 30, BIST 50, BIST 100 Indices constituents and weights for related index period.
Please click for BIST Stocks Indices constituents.