Note to potential issuer, stock market participant

    Issue of securities as a financing instrument aimed at long-term and effective work in the market

    The issue of securities is an opportunity for an enterprise to attract money from investors in order to develop a variety of areas of business. The main sources of raising funds for business development can be both bank loans and the issue of securities.

    The stock market of Turkmenistan is at the stage of its development and in the current situation, business representatives in our country mainly use bank loans as a tool for financing their activities, and many may not even know about the existence of the securities market, while in some cases it is more profitable to issue securities (stocks or bonds).

    By issuing shares, you are offering investors a stake in your business. They will be able to count on dividends - usually part of the profit goes to this.

    When you issue bonds, you borrow money from investors and in return promise to pay them interest - a coupon income. The advantage is that, unlike a loan or a loan, you yourself determine how much you are willing to pay to bond buyers and how often you will do this.

    Each domestic enterprise has the opportunity to attract the necessary capital by issuing securities - shares and bonds. The choice of a particular tool depends on the goals, wishes and capabilities of the enterprise. It is important that both investors and the company itself understand for what purposes the financing will be used and from what income the money will be paid to shareholders or bondholders. It all depends on the circumstances, but if you decide to raise money through the stock exchange, it may turn out to be cheaper than loans. In addition, it will give you more financial freedom and prospects for development.

    The main advantages of issuing securities:

• you yourself decide what reward investors will receive;
• no collateral required;
• raised money can be used at your discretion;
• the circle of investors is much wider than that of creditors;
• publicity and PR.

    Potential issuers wishing to raise the necessary capital by issuing securities (shares or bonds) can seek advice from the Ashgabat Stock Exchange.