Baku Stock Exchange facts for kids

The Baku Stock Exchange (BSE) is the main place in Azerbaijan where people can buy and sell parts of companies. It's like a special market for investments. The BSE is owned by 20 different groups or people, working together as a company. It is the only stock exchange in Azerbaijan.

What the Exchange Does

The Baku Stock Exchange helps people buy and sell different types of investments. These include short-term government loans, which are like promises from the government to pay back money with interest soon. It also trades parts of companies, especially those that used to be owned by the government but are now private. These companies can be in food, building, or banking.

The BSE is the only place where you can trade special government investments. These include short-term loans from the Ministry of Finance and notes from the Central Bank of Azerbaijan. The Central Bank of Azerbaijan also makes sure the stock exchange and all investment trading in Azerbaijan follow the rules.

The rules for the BSE come from important laws and documents. These include the Civil Code of Azerbaijan, rules from the Central Bank of Azerbaijan, and the BSE's own internal rules.

A Look at History

The idea of a financial market in Azerbaijan started a long time ago, over a hundred years! The first Baku Exchange opened in 1886. Important steps included selling special bonds for the Shollar Water Line in 1909 and the first company shares in 1913. However, the exchange stopped working in 1930.

Modern trading began when the Baku Stock Exchange (BSE) was created in 1997. Official trading started in 2000. By 2004, it included trading company bonds, shares, and Central Bank notes. Later, in 2006, banks started lending money to each other using the exchange. In 2009, people could trade mortgage bonds, which are loans for houses. A system to help keep the market fair was set up in 2013.

Big events happened in 2016, like the launch of SOCAR bonds and a new trading system called CETA. In 2018, the first investments from companies outside the financial world were traded. A new rule in 2023 made it so that publicly traded investments didn't have to pay certain taxes. The BSE also became part of big international groups like the World Federation of Exchanges. It also joined the UN’s Sustainable Stock Exchanges Initiative, which promotes responsible investing.

In 2024, the BSE got a new look and achieved two important things. Azerbaijan had its first IPO, which means a company sold its shares to the public for the very first time. Also, people could start trading shares from far away on the secondary market.

Who Manages the BSE

The person in charge of the Baku Stock Exchange right now is Ruslan Khalilov. The group that oversees everything, called the supervisory board, is led by Farid Akhundov.

How the BSE is Organized

Organizational chart of BSE

Bell Ringing Events

At the Baku Stock Exchange, special bells are rung to mark the start and end of each trading day. Even though all trading happens on computers now, these bell ceremonies are kept to honor tradition. They are used to celebrate important moments in the stock market or to bring attention to social causes.

When Trading Happens

The Baku Stock Exchange is usually open for trading from 9:30 AM to 5:00 PM (local time, which is UTC +4 hours). The exact times can change a little depending on what is being traded. The exchange is open from Monday to Friday. It is closed on Saturdays, Sundays, and on public holidays declared by the government.

See also

In Spanish: Bolsa de Bakú para niños

• Financial Markets Supervisor Authority
• List of stock exchanges
• List of European stock exchanges