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Azerbaijanâ€™s corporate securities market declines in portion

05 November 2008 11:50 (UTC +04:00)

The corporate securities turnover accounted for AZN 189.4 million or 2.6% of the stock market that totaled AZN 7.357 billion in January-October.
The corporate securities segment made up AZN 301.8 million or 7.9% of the total turnover of AZN 3.816 billion in the same period last year.
Also, a decline in stocks secondary market has been commonplace this year. The share of this segment fell to a lowest point of 0.04% this year from 2.1% the same period last year.
There are several reasons behind the decline in the organized stocks market. One of the reasons is the low corporate governance in joint stock companies.
In general, the organized stock market may develop successfully when and if the joint stock companiesâ€™ leadership and major shareholders are interested in the open market.
In order to keep secret the number, value, and holder of deals, the stock transactions are carried out at unorganized market (notary public offices, brokers etc.) rather than at exchanges.