Economy Guide, this paper more people at the mouth of the stock exchange , known as  the stock market will tell simplifying. Stocks and stock types are also important issues in this article. Click here for other articles about the markets  .The stock market is a market in which investors kısmi buy shares and have partial ownership of companies.. In the bond markets, investors can only lend; The stock markets attract much more attention with the ability to acquire partial ownership. For these reasons, the most known and most common type of market is the stock market.


In companies that do not need foreign investment, the shares are held by the owners or founders, while other companies that require foreign investment obtain the necessary investment by issuing their shares in the stock market.

  • Companies may obtain the necessary investment by issuing shares in public offering . So what does a company offer to the public? Public offering means that a company in need of investment announces and sells its shares to investors in the stock market in various ways. 
  • One of the biggest sources of motivation for investors in the stock market is dividend distribution . Let us explain the dividend distribution as follows. Companies distribute a portion of their profit to all shareholders of the company, namely the shareholders, at certain times. This income per share is called dividend. Let us clarify this concept by example. Suppose a company has 1000 shares in the market. This company announces its annual profit as 10,000 liras and distributes 3000 liras to the shareholders of the company. In this case, the company’s profit per share is 3,000 liras / 1000, ie 3 liras. This is 3 TL dividend income given to investors and other shareholders per share. 
  • Another reason why equity is an attractive investment tool for investors is the increase and decrease in the value of stocks. As an example, an investor who buys 10 shares from Aselsan for 20 lira can sell these stocks from 35 lira after the positive economic developments for Aselsan, and so he can buy these stocks for 200 lira and sell them for 350 lira on the stock exchange.

Stocks that provide a partial partnership to the investor are usually traded in the secondary market. In other words, the investor who wants to buy a stock from a company will be able to buy this stock from another investor. As a result of this trading, the company gains nothing. In this case, the winners and the losers are traders. The main time for companies to gain is the moment when the public offering and shares are offered to the market and sold, or the moment when their own shares are collected from the market and then re-launched and sold.


We can divide the stock types into common stocks and preferred stocks. These stock varieties have significant pros and cons. Ordinary shares give the investor the opportunity to have a say in the management of the company while partnering with the company. Ordinary shareholders have the right to vote when electing the company president. Preferred stockholders have no influence on the management of the company.Preferential stocks allow the investor to obtain dividend income primarily while giving the company the opportunity to become a shareholder. Preferential stocks have an advantage because they are ahead of ordinary shares in dividend distribution.The above-mentioned pros and cons are evaluated by the company and the rate of ordinary or preferential shares of the shares offered to the market is determined.  

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