• Shares, corporate and government bonds (Ministry of Finance bonds), Central Bank notes, mortgage bonds, bonds of state-owned companies, other corporate bonds, and repos as a short-term borrowing tool are traded on the exchange.
• Investments can be made through investment companies that are members of the BSE. Information about these investment companies can be accessed via the following link: https://www.bfb.az/en/investment-companies
• At present, work is ongoing to enable the remote trading of bonds on the BSE.
• Shares grant investors ownership rights and the opportunity to earn dividends. Additionally, the share price may increase, providing an additional income source for investors.
• Bonds are debt financial instruments that do not confer ownership rights. As debt securities, they offer investors a fixed income.
• Repo is a short-term borrowing tool involving shares and bonds.
• Trading hours on the Baku Stock Exchange are from 10:00 AM to 4:30 PM.
• The latest market information can be accessed through the BSE website, trading platforms, or licensed brokers.
• In the stock market, risks include price fluctuations. In the bond market, risks are associated with overall market interest rate changes, particularly during economic instability. In the repo market, risks are linked to the underlying securities (shares or bonds) involved in the transaction.
• You can invest by opening a trading account with a licensed member companies and executing trades through their platform.
• Share prices are determined by market supply and demand dynamics. Factors like company performance, economic conditions, and investor sentiment influence these prices.
• Investing in equities offers benefits such as potential long-term capital growth, dividend income, portfolio diversification, and a hedge against inflation.
• There is no minimum amount requirement; however, the minimum lot size is 1. There is no fixed minimum amount, as it depends on the share price and the servicing members range policies as well.
• BSE facilitates the trading of government bonds, corporate bonds, and other fixed-income securities.
• Bonds provide a stable income stream, portfolio diversification and lower risk compared to equities.
• Bond yields are calculated based on the interest rate (coupon), face value, time to maturity and the market price of the bond
• The minimum investment amount varies depending on the bond issuer and the type of bond.
• Repo (repurchase) transaction is a short-term borrowing mechanism where securities are sold with an agreement to repurchase them at a later date at a fixed price.
• Institutional investors, individuals, banks, and other financial entities typically participate in the repo market through member companies.
• Repo transactions offer liquidity and flexibility for short-term financing and investment needs.
• In a repo, the seller agrees to repurchase securities; in a reverse repo, the buyer agrees to sell the securities back.