Riqueza for Financial Consultancy qualifies companies to be registered in Egyptian Exchange and completing all registration procedures

About Egyptian Exchange

What is stock exchange and what are its benefits?

Stock exchange is a regulated market for securities exchange (bonds or shares) through which individuals exchange these securities under a structured legal framework so as not to lose rights and capital; and maintain an objective assessment of the real position of these companies. Prosperous companies have a higher demand for their shares and bonds, as their financial conditions are strong. Thus, investors trust the performance of these companies. Hence, they buy its securities in stock exchange, which naturally leads to an increase in the market value of these securities in proportion to the historical value of the increase in the demand for their shares, and is scientifically called "nominal value" i.e. the basic price at issuance of the share or bond at the time of subscription and vice versa for the loss-making or poorly performing companies, as the prices of their securities are lower than their nominal value.

The role of stock exchange in economy?

1-   It develops savings by encouraging investment in securities and direct savings to serve the national economy.

2-     It contributes supporting both internal and external credit. as purchasing and selling currencies in the stock exchange are a manifestation of internal credit. If the manifestations of this credit are boosted to include securities traded in global stock exchanges, it is possible to accept these securities as a cover of financial loans.

3-     The stock market is an important tool for evaluating companies and projects, as it contributes to increasing the awareness and understanding of investors for the real position of companies and projects, and as they are judged for success or failure. The decline in stock prices for a company is a clear indication of its lack of success or of its weak financial position, which may lead to some adjustments in its management or policy in hope for improving its status.