TASE for Beginners
TASE is a trading arena where various investment products are traded. Here you can also learn the listed companies and about investing on TASE.
FAQ'S about TASE for beginners
The TASE was established in 1953 as a private company by its members, banks and brokers' firms, in order to institutionalize trading in securities in Israel.
In April 2017, the Knesset ratified an amendment of the Securities Law enabling changes to TASE's ownership structure and in September 2017 the District Court ratified the TASE demutualization arrangement, enabling changes to TASE's ownership structure, which turns the TASE into a company of profit, while separating TASE membership from ownership TASE shares.
The Israel Security Authority (ISA) is the direct governmental that supervises its activities. The TASE Clearing House, the Maof Clearing House and the Nominee Company are subsidiaries of the TASE.
The government has companies that it owns. The government can sell part of the control in these companies, by selling securities to the public. The sale of stocks of a government-owned company to the public is called "privatization", meaning the transformation of the company from a government company into a "public" or "traded" company. Privatization is an expression of an economic concept aimed at reducing government involvement in economic life. Since 1990 many government companies in Israel have been privatized on the TASE, including Bank Hapoalim, Bank Leumi, Bezeq, Israel Chemicals, El Al and others.
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 >
Learn more about stocks >
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, Makam, ETFs, 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.
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 >
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 >
Extensive information on TASE's various activities can be found on the TASE website: Trading, Clearing, Listings, Dual Listing, etc.
Investment in stocks is through "TASE members" - banks and investment houses that have direct access to the TASE's trading system.Investment decisions can be made through investment advisors who have received a special license from the Israel Securities Authority. Their recommendations are based on analyses of the companies and the capital market, as well as the investor's preference: the desired time for investment, the amount of money earmarked for investment, the degree of risk that the investor is prepared to take, and more.