• time : 9:40:7
  • Date : Mon Feb 10, 2020
  • news code : 190101
Joint-stock companies, necessity of national economy
An increase in the stock index has a number of reasons, for example, it can occur from the reappraisal and increase in the capital of companies that make them profitable, Shapour Mohammadi said.

(SHADA: TEHRAN) -- With the profitability of companies, confidence in market investment is formed and in all markets of the world the presence of market investors in the long run is associated with profitability, the head of the Securities and Exchange Organization said.

One of the components of the capital market is the diversification of trading instruments, he said, adding: At one time there were only stocks on the market that were traded, and now there are a variety of instruments and debt securities in addition to stocks.

There has also been some good progress in liquidity and brokerage support; joint-stock companies have also grown, and if people know that joint-stock companies grow every year, why should they sell their stocks?, Mohammadi noted.

Exchange exemptions or tax incentives can support joint-stock companies. On the other hand, the Securities and Exchange Organization supports and welcomes the presence of people on the stock market, and we try to diversify and make it attractive to people, he continued.

The head of the stock exchange also responded to the question of why out of the hundreds of thousands of companies in the country there are about 600 companies listed in the stock market, and said: There are currently 620 companies and trading symbols on the stock market. More attention should be paid to attracting companies to the stock market. Tax incentives for joint-stock companies are under consideration.

Some companies which are not listed in the stock market bypass the law and may pay no taxes or very low taxes, but the joint-stock companies are all transparent and pay real tax rates. Therefore, the company that is listed must be encouraged, Mohammadi said.

We must give concessions to joint-stock companies to get banking facilities, of course we do not want illegal concessions, but by law we want these companies to be given priority in financing facilities because joint-stock companies are transparent and regularly report on their performance. Other incentives can be considered for joint-stock companies too, he stated.

For example, in big bids, companies that are in the stock market and transparent, get better ratings and concessions, or even we advertise their products at a lower cost in national media and other media, Mohammadi continued.

In export, employment and production, joint-stock companies can also be prioritized because these companies provide shareholders and all the people with Codals.

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