|Investing on TASE|
|The Importance of TASE Role to the Israeli Economy|
The Tel Aviv Stock Exchange plays an important role in the growth and development of the Israeli economy and serves as a meeting point between companies operating in the isreli market and the public. The TASE leads the Israeli capital market and contributes to the economy and society through advanced trading and clearing infrastructures.
Companies that need to finance their activities for growth and development, turn to the stock exchange and raise capital through IPO's. Investors purchase securities and become partners in the company. The government also raises money on the stock exchange by issuing bonds, which are a kind of loan the public gives to the government, and also by selling shares of privatized government companies. In doing so, the TASE contributes to the growth of the entire economy.
|Why is a stock exchange necessary?|
Stock exchanges constitute one of the main avenues for companies and governments to raise capital, through the issue of stocks and bonds. The business sector uses the money raised to finance investment, such as R&D, new plants and equipment and human resources and to fuel corporate growth. This capital also enables entrepreneurs to grow and develop their enterprises. In addition, the government divests its holdings in government companies through privatization offerings to the public.
The primary role of a securities exchange is to provide liquidity for securities issued in public offerings. At an exchange, the long-term financing sought by corporations meets investor preference for investments that can be liquidated at short notice and low cost. By providing liquidity for otherwise illiquid long-term investments, securities exchanges facilitate capital formation and economic growth.
|What is traded on the stock exchange?|
Several types of securities, are traded on the stock exchange, with the most common product being stocks. A stock is one type of security that enables the issuing company to raise capital from investors on the stock exchange. In exchange for the money they invest in the stock, investors receive part of the ownership and become partners in the company. As the company increases its operations and profits, investors can benefit from its profits.
The Tel Aviv Stock Exchange is unique in comparison to other stock exchanges, because most of the world's most popular investment instruments, including stocks
, government and corporate bonds
, options and futures
, are traded on it. In other countries trading is split into several exchanges. The concentration of trading in one place optimizes management and operations and enables investors to trade in all products at the same arena.
|What is the Israel Securities Authority?|
The Israel Securities Authority (ISA) is an entity whose purpose is to protect investors and their rights. The ISA supervises the proper management of the TASE's activity and the companies traded on TASE, grants companies that operate on the TASE a permit to publish prospectuses for their securities, regulates the mutual funds sector, grants securities licenses to portfolio managers and investment consultants, etc.
|How is trading conducted on TASE?|
Although most people imagine trading as conducted between traders shouting at each other, noisy and colorful trading arenas are a part of the past. In fact, the TASE has been operating since 1999 in sophisticated computerized trading systems, based on advanced computer technologies, without physical trading arenas. The trading system is called "TACT" Tel-Aviv Continuous Trading.
TASE members transfer buying and selling orders continuously and in real-time to the "Central Order Book", which is located on the TASE computers using the "TACT" computerized trading system. The system matches the orders and creates transactions. Trading information is published regularly on thousands of monitors on various websites in Israel and abroad, and is accessible through sophisticated distribution systems.
At the close of trading, transactions are cleared at the TASE Clearing House and securities' buyers receive the securities to their accounts and pay for them (and vice versa, for the sellers of the securities). Everything is computerized, anonymous and without human contact.
|What are TASE's sources of revenue?|
|TASE collects commissions on each security sale and purchase. For each shares transaction of approximately NIS 100 thousand, TASE charges its members a few shekels. In addition, TASE collects fees from listed companies and charges for the provision of real time data services. TASE revenues cover the expenses involved in conducting sophisticated trading and clearing operations. The remainder of its revenues is earmarked for investment in improving these systems, for providing various services and for creating reserves to cover lean years and unanticipated contingencies.|
|What are the advantages of automated over floor trading?|
Automated trading introduced equal access to securities trading – portfolio managers, institutional investors and the man on the street receive the same information
at the same time.
In addition, in comparison with floor trading, automated trading accommodates the efficient execution of a large number of transactions and enhances the capacity for control, enabling, for example, more effective investigations into suspected market abuse and prevention of technical errors.
|How can one learn more about TASE and Israel's capital market?|
|How can I invest in the stock exchange?|
Securities traded on the stock exchange can be bought or sold through "TASE members" only (banks and members who are not banks. Connection between the public and TASE members is through investment advisors or portfolio managers (brokers) licensed by the Israel Securities Authority.
An investor wishing to carry out securities transactions is required to open a securities account with one of the TASE members and may trade in several possible ways. Today, it is possible to trade via the internet or cell phone, after receiving appropriate authorization from the TASE member through which the investor trades.
It is important to note that all trading, buy or sell orders must pass through a TASE member, but they are anonymous - and reach TASE computers without the name or any other details of the investor.TASE member list >
| ||Securities, Indices and TASE Trading|
TASE develops and calculates a wide variety of indices. An index reflects average price levels of a selected group of securities. The TA-35 index, for example, reflects average prices of TASE's 35 most highly capitalized shares. Index changes reflect average returns to investors from these shares.
All constituent shares in a TASE index must meet the criteria of the "equity indices universe
" and each index has its own specific rules regarding its potential constituent securities.
The Tel-Bond indices
track the average price movements of corporate bonds. Other indices track various groups of securities and are published at the end of the trading day.
On the TASE website, each index has a dedicated "Index Page", which includes the following tabs:
- About the Index
- Index Components (Constituents)
- Index Linked Notes – additional TASE-traded products based on the index (i.e., for which the index serves as underlying asset)
- Charts – from 2000 onwards
- Historical Prices – from 2000 onwards
- Corporate Disclosures – latest filings by index constituents from the MAYA website (Hebrew only)
|What are stocks?|
A stock is a type of security that enables the issuing company to raise capital from investors on the stock exchange. Investors become partners in the company, and as the company increases its activity and profits, so investors can benefit from its fruits.
In return for the money they pay for the investment in the stock, the investors receive part of the ownership of the company and thus become partners in it.
With the money the company receives from the public, it can purchase equipment, recruit employees and develop new and existing products, in order to expand its operations. There are companies that distribute dividends - that is, the shareholders participate in their profits by receiving cash, according to the number of shares held by them.Learn more about stocks >
|What is a bond?|
Bond issuance enables companies and the government to raise capital from the public, in a process that is similar to talking a loan from a bank. The company that issues the bond returns the debt on a predetermined date. The investor that purchases the bond in effect gives a loan to the entity that issues the bond.
The bond is traded on the stock exchange and can be bought and sold without any connection to the repayment date of the "loan". A bond is the primary financial instrument for solid investments. The bond guarantees a predefined yield and the ability to profit from trading in it in the short term in the event that the price rises in the market after the purchase.
Government bonds can also be bought on the TASE - bonds issued by the government in order to increase its revenues, reduce government deficit and improve its services to its citizens. The government is the largest debt issuer on TASE. Learn more about bonds>
|What are ETNs?|
A type of security traded on the stock exchange allows us to invest in several securities
from a certain group, such as one of the indices, in a single simple operation. Thus, we also earn savings on commissions on the purchase of each security separately. There are many types of ETNs - including ETNs on the various indices on the TASE, short certificates, commodity index certificates, certificates on currencies such as dollars and euros, and more.Learn more about ETNs>
|What are mutual funds?|
A mutual fund is an instrument that enables investment in a variety of securities in accordance with a predetermined policy. The fund is managed by a fund management company (fund manager). Mutual funds are not traded on the stock exchange.
|What are derivatives?|
A derivative is a financial instrument (such as a future or option) whose value is derived from and is dependent on the value of an underlying asset. For example, the value of TA-35 index derivatives is based, inter alia, on the value of the index during trading on TASE.
There are two main types of derivatives: options and futures, which allow for the trading parties to hedge against fluctuations in the underlying index. Derivatives are also considered as an alternative investment for the underlying asset.
The TASE derivatives market is highly active, and since 1999 it is fully-automated on TACT (Tel Aviv Continuous Trading).
The MAOF (Derivatives) Clearing House is a subsidiary of the TASE and its board of directors consists of external directors and directors who represent exchange members. It sets the rules and regulations governing the derivatives market.
|What are the trading phases at the TASE?|
|Where can you find market data on the TASE ?|
The TASE operates in complete transparency and information on trading in the various securities can be obtained through the TASE website, data vendors and TASE members.
The TASE website presents a great deal of information about TASE activity, data on current trading in securities – free, with a 20 minute delay, on trading volumes and indices, and includes historical data - that is, information on changes in indices and securities prices at different periods, such as the past week, or since the launch of the index.
2. Data vendors
Market data on the TASE is distributed through the TASE's data vendors, who receive permission to use data from trading systems and publish it in real time on various websites and software, for a fee. Data vendors must meet the highest standards in order to ensure the information is accurate and updated.
3. TASE members
TASE members have websites that present up-to-date information about trading in securities, and enable their clients to transfer buy or sell orders for securities on TASE
|Can one visit the trading floor?|
TASE trading is fully automated and is carried out over computer networks.
In 1997 the TASE introduced a fully automated trading system called TACT (Tel Aviv Continuous Trading)
. By October 1999, all shares, bonds, T-bills and derivatives have been migrated to the new electronic trading platform, marking a new step in the history of the Tel Aviv Stock Exchange.
|Securities & Derivatives Prices|
Securities prices are quoted in agorot. One agora equals NIS 0.01.
Derivatives (options and futures) prices are quoted in NIS.
|Trading Days and Holidays|
|Additional explanations on how to navigate the TASE website|
|Public inquiries to TASE|
Extensive information on TASE activities can be found on the TASE website.
For an explanation regarding the structure of the website menus, click here.
For a site map, click here.
Inquiries can be submitted:
- Through the "contact us" form, which is classified according to topic.
- Telephone: 076-8160411, on TASE business days.
- Fax: 03-5105379.
- Address: 2 Ahuzat Bayit St. Tel Aviv, 6525216.
Historical data is available for payment through the "contact us" request by selecting "Historical Data"
|For technical support regarding the TASE website, call 076-8160666, on TASE business days.|