Capital market, attracting investment factors and activating trading in securities
03/8/2017


Taha Ahmed Abdel Salam
Securities trading indicators from the point of view of financial markets means the success or decline of the foundations of capital formation within the mechanisms of market economy. If the financial markets are part of the mechanism of ownership transfer only, this will not contribute to building and sustaining the growth of the capital market. If markets are active in strengthening capital building mechanisms, they contribute significantly to economic growth through attracting and directing working capital towards competitive projects that operate. According to lower cost and economic benefit.
Within the global classification, markets move from the frontier market to Emerging market after achieving key factors, including market liquidity, free market capitalization, stock turnover.
Through the indicators achieved, the Iraqi market for securities is still a developing market and did not reach the level of the emerging market as the economic environment needs to strengthen the legal factors aimed at deregulating investments and enhancing the attractions of national savings and stimulate foreign investment.
These factors can be achieved through:
1. Issuing procedures for the implementation of Article 55 / IV of the Companies Law, which allows the issuance of shares of companies for sale to cover the increase of capital through the Iraqi market for securities, through the follow-up mechanism IPO IPO.
The IPO allows for effective capital building through daily marketing according to the economic feasibility study through the stock market, brokerage companies and electronic trading.
2. Developing the legal climate in the capital market, including attracting foreign investment through:
*Issuing the instructions of the International Depository Receipts and allowing the circulation of Iraqi securities on the London Stock Exchange and the
US Nasdaq Market*
(b) Issuing short or margin trading instructions allowing the expansion of the market through the borrowing of securities between the shareholders.
3 - the issuance of capital market in Iraq , the law or the investment law in securities in accordance with international standards to achieve the transition to a market economy factors and allowing use of the rules of the IPO, privatization of companies, the shares of foreign companies, especially those aggregated on contracts in Iraqi projects, the purchase of companies Listed as a percentage of its capital when its market price falls due to non-economic factors and other international rules that stimulate and attract investment.
4 - Allow the transfer of financial investment companies to investment funds according to structural indicators that increase the ability of investment capital of the company and the investors' portfolios and enable them to play the role of market maker and replace the budget in the trading entry to buy at low prices and selling when rising.

Executive Director/Iraq Stock Exchange
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