We will be updating this section with more answers, so please check back if you wonder what kind of questions people ask these days. If you have your own question that is not listed here please feel free to address it to Parandzem Avagyan, Head of Marketing & Communications.

Due to investments:

  • You can always have the option of increasing your welfare through investments regardless of how much you and your family members are making currently.
  • You can get high return on savings ensuring access to quality healthcare and education for your children. This is equally true for more mature people who want to enjoy the best life has to offer.
  • Sooner or later we all start to think about finding a way to continue maintaining the lifestyle that we’ve got used to in the future, even after retirement. Pension benefits are great, but not always sufficient to sustain high enough living standard. And this is exactly the gap that investing has come to fill.

 

As a person who has savings to invest, an investor, you can consider various alternatives:

  • Keeping your money “under mattress” or in a “piggy” bank, which basically comes down to the same result – no result, as you earn no return on your “investment”. Not to mention, your saving gets eaten away by inflation.
  • Taking your money to a real bank and placing it as a deposit to bear some interest. Unfortunately, interest rates on demand deposits are normally quite low (up to 4% per year), while for time deposits you have to “block” your funds for a certain period of time, the term of the deposit. If you withdraw them before the deposit term expires, you normally lose all interest accrued.
  • Make investments in securities as an alternative source and conclude profitable transactions and double the saved money.

When an investor seeks balance between return and flexibility, investing in securities can be a good option. In the Armenian securities market you can invest in the following types of securities:

Common stocks, on the contrary, represent ownership right and entitle the holder to participate in the management of the company by providing voting rights, receiving dividends, as well as a portion of the Company's property in case of its liquidation. Preferred stocks are considered equity securities with bond-like features, as they do not provide voting rights, but typically entitle the holder to a fixed dividend, before any dividend can be paid out to holders of common stocks.

Bonds, or debt securities, differ from stocks, or equity securities, in that they do not represent participation in the capital of the company. Instead, they entitle you to a guaranteed fixed rate income, which is known to you at the time you buy the bonds.

Common stocks, on the contrary, represent ownership right and entitle the holder to participate in the management of the company by providing voting rights, receiving dividends, as well as a portion of the Company's property in case of its liquidation. Preferred stocks are considered equity securities with bond-like features, as they do not provide voting rights, but typically entitle the holder to a fixed dividend, before any dividend can be paid out to holders of common stocks.

Bonds are considered to be less risky financial instruments than equity securities. This is especially true of government bonds, which are believed to be virtually zero risk securities. One should note, however, that the lower the risk, the lower the return and expected profitability. The fixed return that you get on a bond can be incomparable with earnings that you may have if a stock you have bought performs well in the market. But equally incomparable with losses that you may incur if one fine day the stock nose dives much below the price you paid for it. So, when making an investment decision you should always weigh your return expectations by your risk tolerance – the extent to which you are prepared to take on risks.

 Transactions at the exchange are concluded via brokers. If you feel up to making your first investment, you can immediately pass to broker’s, i.e. a specialized middleman’s company that will provide you with a more in-depth insight and advice on the Armenian securities market. All the members of the exchanage and CBA licensed companies can be found in our website’s Members and Market participants.

Liquidity is also an important feature of securities. It means that both equities and bonds can be sold at the stock exchange at any time without any material losses. Even if you sell the bond before the redemption date (when the debt represented by the bond is repaid), you will not lose any return accrued for the period you were the bond holder. The more holders of a security, the larger is its market and the easier it will be to sell it, that is why stock exchanges set free float requirements to companies who seek to list their securities and have them traded on the exchange market. The liquidity of a security is also enhanced if it has appointed market makers that provide continuous bid and ask quotations, thus making it easier for the investors to realize their holdings whenever needed.

Armenia Securities Exchange (formerly"NASDAQ OMX Armenia") is the new official name that the Armenian Stock Exchange has got. Scince June 5, 2009, Armenia Securities Exchange has been the sole shareholder of the Central Depository of Armenia.

Common and preferred stocks, corporate bonds, Government bonds, repurchase agreements (REPO), Swaps, currency (US Dollar and Euro), as well as credit resources (7 days) are traded at present

Only companies holding a license from the Central Bank of Armenia to provide investment services and having obtained membership/market participant status from Armenia Securities Exchange can trade on the exchange. A list of such companies can be found in this section of our website. To have a security bought/sold on the stock exchange, please contact any of them.

There are no restrictions applicable. Most of Armenia Securities Exchange member investment companies currently serve both local and international customers.

Trading sessions are held every business day of the week, except public holidays. Trading hours for all instruments traded on Armenia Securities Exchange are from 11:00am to 3:00pm.

The results of the trading sessions are posted on a daily basis on our official website under Market Data section. Daily and monthly trading session result summaries are provided to “ARKA”, “Arminfo” news agencies. There is an Internet portal dedicated to the Armenian capital markets at www.capitalmarket.banks.am. More detailed analytical information and monthly trading statistics can be found in Armenia Securities Exchange monthly bulletins, which are posted here. Armenia Securities Exchange also has an agreement on providing market data to Bloomberg and Reuters.

Yes, it is. Trading on Armenia Securities Exchange is done via a fully automated trading system, and market participants do not even have to physically come to the stock exchange to buy and sell financial instruments. Instead, they connect to the trading system from terminals installed at their own offices, see all orders in their monitors, and trade remotely. The crowd and the yelling that you may be referring to is a part of the open outcry auction, which they had back when the stock exchanges first started in now developed markets. This such called “trading pits” are still preserved in many countries, if more as a tradition, since almost all trading worldwide is now done through electronic trading platforms.

No, you can not. Only investment companies and banks licensed by the Central Bank of Armenia can become stock exchange members and market participants, and use the trading system. You can only participate in the exchange trading directly if you become a trade participant acting as part, or on behalf of such investment company or a bank.