What is the capital market and what is the Stock Exchange?
The capital market is a place where the government, smaller or larger businesses, banks and municipalities can find long-term resources to fund their further development, and where investors seek possibilities to place and increase the value of financial means they have available.
The basis of existence of the capital market in the Slovak Republic was laid with the first wave of the coupon privatisation. With the aim of creating a market of securities, Bratislava Stock Exchange (BSSE) was founded in the year 1991. Bratislava Stock Exchange currently operates a regulated market and provides associated services, performing these activities based on a licence granted by the National Bank of Slovakia. BSSE’s commercial activity started on 6 April 1993.
Who is allowed to trade on BSSE?
Similar to a majority of Stock Exchanges in the world, BSSE’s activity is based on a membership principle. Stock Exchange membership can only be granted to, and transactions can only be concluded by, a business entity which is a bank/a securities dealer/an asset-management company that meets the criteria stipulated by the law and by the Stock Exchange Rules. Natural persons interested in selling or buying securities traded on BSSE have to address one of BSSE members. For a complete list of BSSE members, including contact information, please refer to the Members section of our website.
How to proceed if interested in buying or selling securities?
If a client decides to buy securities on BSSE, a visit to one of the Stock Exchange members is necessary where the client concludes a commission agent contract to procure a purchase of securities. A stockbroker, who is an employee of the Stock Exchange member, will enter an order to buy securities into the Stock Exchange’s trading system on the client’s behalf. If the order to buy is matched with a suitable order to sell in the trading system, a stock exchange transaction is concluded.
If a client decides to sell securities on BSSE, a visit to one of the Stock Exchange members is also necessary where the client concludes a commission agent contract to procure a sale of securities. An order to sell is entered into the Stock Exchange’s trading system again by a stockbroker on the client’s behalf. If the order to sell is matched with a suitable order to buy in the trading system, a stock exchange transaction is concluded.
In the case of a purchase, securities are credited to the client’s account usually on the third stock exchange day after the conclusion of the transaction. The member will send the financial means to clients according to the terms agreed upon in the instruction. The realisation of transactions via Stock Exchange members entails certain fees; it is necessary to inquire the relevant member about the level of these fees.
What is required for a sale/purchase of securities traded on BSSE?
Particulars and documents necessary for a purchase/sale of securities are specified by individual BSSE members.
How to find out if a specific security is traded on BSSE?
If a natural person owns securities acquired in the first wave of the coupon privatisation or in other manner, and wishes to find out what is happening with the given company’s securities or, respectively, is interested in selling them, such person can find out whether those securities are still traded on BSSE.
Relevant information can be obtained from the following sources:
1.BSSE’s website, in the section List of securities
2.Members of BSSE
3.External Communication Department of BSSE
BSSE’s price list
At the close of every stock exchange day, BSSE publishes on its website an official price list that contains a list of securities which were traded on a given day or for which at least one order (an order to sell or an order to buy) was recorded, their prices, volumes of transactions and other necessary information for investors. The price list is also published by certain press agencies or foreign professional data distributors. On the next day, a modified version of the price list is published by Slovak newspaper – Hospodárske noviny.
