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Joint stock companies support the national economy and the family

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Joint stock companies support the national economy and the family

Sunday 25 August 2019 88
Baghdad / Hussein Thaghb

The Executive Director of the Iraqi market for securities Taha Ahmed Abdul Salam, the need to expand the founding of joint-stock companies for their role in supporting the national economy and the economy of the family, as well as the importance of spreading the culture of stocks in the Iraqi society and work to expand investment in stocks and bonds to be an element of attracting financial surpluses to citizens.

He said: "The Iraqi market for securities official market listed system in which 103 joint stock companies representing 9 economic sectors, banking, industrial, agricultural, service, insurance, communications, investment, these are the various segments of the Iraqi economy.

The future of the economy

He explained, "when compared at the level of the size of the Iraqi economy and trade exchanges with the countries of the world, we find that the 103 number is very simple in front of the capabilities and future of the Iraqi economy and its potential, that is, when we say that the GDP of more than 100 billion dollars come on the contribution of the private sector and mixed we find the proportion of its contribution In this output does not exceed 7-1 percent of the Iraqi economy, compared with the economies of the world when you notice the proportion there ranging between 70-40 percent.

He pointed out that "must focus on the culture of investment or its goal or stand at the fact that there is investment in securities in Iraq and here we point the importance of encouraging the establishment of joint-stock companies, and this element is born or leads to the advancement of the Iraqi economy through the development of investments and the operation of competencies."

Establishing companies

Abdul Salam said that he aspires to encourage joint stock companies as it is a goal and an end he wants to reach them through the culture of investment, and the establishment of joint-stock companies in itself creates a culture of investment in the Iraqi society, pointing out that the number of Iraqi joint stock companies or mixed must not be less than 500 A company in an economy the size of the Iraqi economy.

He added that "the market is trading stocks and bonds 103, but at the same time the law allowed the circulation of government bonds, and there is now the process of issuing government bonds through the Central Bank of Iraq during the three years, as the issuance of the central bank was accepted and traded in the market, but when it came to extinguish Its presence in circulation was 3 years old."

Government bonds

Abdul Salam stressed the importance of generalizing the idea of government bonds to the bonds of joint stock companies, meaning we allow companies according to the law to issue financing bonds or lending bonds of their own, these bonds raise the capital of companies and achieve the first two objectives of the joint-stock company inflate the purpose of financing required by the company, also achieve The stock market, which is a diversification of financial instruments, there will be bonds besides stocks, and the other end is a kind of safe investment for the investor, which in turn encourages new investors to enter into bond purchases."

Issuance of bonds

“The culture of investment is linked to the development of procedures for the establishment of joint stock companies and the issuance of bonds.

He said that "the market is working to train at least 400 students in order to spread the culture of investment at the level of university students, but if there is a scientific material for students of colleges concerned with economic affairs in all its joints, and thus gain an important segment to be in the field of investments in stocks and bonds, as happens It also en0courages the student to establish a joint stock company or be part of it or to invest in this important joint."

Stock culture

He pointed out to the importance of a chapter in economics in the preparatory study on the stock market, and serve as an entrance to this important joint in economic life, and here the student is part of the market and spread the culture of stocks and bonds and their role in supporting the national economy and family economy.

He stressed "the importance of expanding the establishment of new joint-stock companies to get the national economy out of the recession," pointing to

"the need for government directions to refer projects to joint stock companies, to lead this trend, therefore, to the establishment of holding companies consisting of many specialized companies, and this Leads to qualitative implementation of projects in their technical aspects, and there is a correct performance in the work."

On the legal aspects, Abdul Salam said, "The need for new laws and the development of laws in force, and put in our calculations mechanisms to increase capital to provide liquidity to establish a project or sustain an existing project, indicating that there are international procedures adopted in the financial markets we call the public offering."

Investment promotion

He warned that "the past two years have witnessed an expansion in Islamic banks, and this requires the existence of financial instruments to encourage investment, where when proposed to participate with these banks by shareholders and businessmen needs to deposit Islamic banking certificates and special trading certificates to be linked to the activity of the bank, pointing out that

All these measures need a law."

He pointed out that "international companies that make profits, we put their shares at a high value commensurate with their reality in the market through the public offering and this is applicable globally, as international companies are offered at high prices.

On the economy and transparency, Abdul Salam said:" We always call for companies to adopt international standards in disclosing Annual data, especially that the Central Bank obliged banking companies to issue the final accounts and financial statements under the International Accounting Standards, and the company issued its accounts according to these standards.

"Here we have to push industrial and agricultural companies in this direction because international standards have international reliability that drives the investor to invest in the financial market."

Investment funds

He continued, "The other important point law or instructions to establish Iraqi investment funds, so far there are no instructions in this regard, in the Iraqi market for securities there are 30 foreign investment funds between Arab and foreign trades and deals in the Iraqi market for securities Finance."

He said: "The question is, why don't we have a gesture to establish investment funds, especially since many citizens have small, medium or large surpluses that they cannot invest if there is an investment fund to invest these funds in economic fields across the stock exchange, which is the best way for small investors." We would have had financial management in the stock market Finance."

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