DEFINITION OF STOCK EXCHANGE

According to the 28th article of Union of Chambers and Stock Exchanges law numbered 5174 “Commodity Exchange is a public corporative establishment responsible for the sales and purchases of stock commodities as well as determination, registry and announcement of the prices that are on the stock-exchange.

When Exchange is mentioned, Stock Exchange Offices where the transaction of stocks and shares takes place come to mind. However, there are differences between a commodity exchange and a stock exchange. The main difference that differentiates each other is the transaction of agrarian products.

Commodity Exchanges are establishments that own fiscal and administrative autonomy defined by the certain regulations of law. In other words, they are such establishments that raise and use their own sources and even transfer sources over public organizations without causing monetary encumbrance to the government. Moreover, they are administered by committees elected from their own members. In that respect, they are not only inevitable elements of liberal democracy, but also they are the crucial parts of free economy. Because, the prices of agrarian products are determined by the conditions of supply and demand at commodity exchanges.



Date: 26.04.2013
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