Notes

Safe investment in the capital market

Security of investment in the stock exchange is one of the major challenges of the previous governments. The eleventh government managed to handle this challenge by disclosing the information of registered companies and launching the codal system in the Securities and Exchange Organization on October 2016. It is a great achievement because it reduces the information release time. Thus, people, especially individual investors, can enter the stock exchange more clearly.

In this regard, it should be emphasized that more information transparency results in  more investment willing; because investment decisions are reduced in an ambiguous atmosphere.

Since the eleventh government took office, investors' confidence has been boosted upon increasing information transparency and security in the capital market. Various aspects of the work should be considered to achieve an ideal level, therefore it is necessary to provide actors, who are active in the real economy, the latest activities of the capital market as well as the latest changes in regulations.

 Another measure taken by the Securities and Exchange Organization is training sessions.  So far more than 1,200 hours of workshops have been held across the country for 320 companies, which part of economic transparency is the result of such training sessions.

Information transparency has made a substantial contribution to resolve one of the most challenging debates in the field of audit, namely DPS (dividend per share) and EPS (earnings per share).

Regardless of the forecast of a company's executives, there is also a discussion about the requirements of the Commercial Code. If corporate profits rose to 100 units, that would mean the company has been able to make a profit. Part of the 100-unit profit will be put aside as real savings, another part should be used as precautionary savings and Research and Development savings, and the rest can be divided.

It is important to note that the auditor does not determine the amount of profit, but he determines a profit report by assumptions. Thus, it is the investor's task to forecast the amount of profit via his evaluation based on the sphere of activity of the company.

Moreover, monthly reports have great influence in investment decisions. By monitoring the reports, investors can reach the correct result in the investment field. If the company is profitable, investors will invest in it; In fact, the exchange of information has enabled the investor to easily monitor earnings per share.

 
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