Stock Exchange Market

Mission & Vision

- Mission

Our mission is to provide and promote an efficient market, with fair rules, attractive and compatible with European standards, to become an influential factor of economic and institutional trends and to form a development environment and entrepreneurship through the provision of services, mechanisms and rules to mobilize, attract and efficient allocation of financial resources, in terms of transparency and safety.

- Vision

The construction of the best capital markets in the region, after Romania joined the European Union.

- Role

The role of the Bucharest Stock Exchange is to provide an organized market for trading securities, to help increase liquidity in the securities market by concentrating a larger volume of securities, contributing to the formation of prices that reflect the adequately supply-demand relationship and to disseminate these prices to the public.

Stock exchanges have multiple roles in the economy. This may include the following:

1. Raising capital for businesses

The Stock Exchange provide companies with the facility to raise capital for expansion through selling shares to the investing public

2. Mobilizing savings for investment

When people draw their savings and invest in shares (through a IPO or the issuance of new company shares of an already listed company), it usually leads to rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to help companies' management boards finance their organizations. This may promote business activity with benefits for several economic sectors such as agriculture, commerce and industry, resulting in stronger economic growth and higher productivity levels of firms. Sometimes it is very difficult for the stock investor to determine whether or not the allocation of those funds is in good faith and will be able to generate long-term company growth, without examination of a company's internal auditing.

3. Facilitating company growth

Companies view acquisitions as an opportunity to expand product lines, increase distribution channels, hedge against volatility, increase its market share, or acquire other necessary business assets. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways for a company to grow by acquisition or fusion.

4. Profit sharing

Both casual and professional stock investors, through dividends and stock price increases that may result in capital gains, share in the wealth of profitable businesses. Unprofitable and troubled businesses may result in capital losses for shareholders.

5. Corporate governance

By having a wide and varied scope of owners, companies generally tend to improve management standards and efficiency to satisfy the demands of these shareholders, and the more stringent rules for public corporations imposed by public stock exchanges and the government. Consequently, it is alleged that public companies (companies that are owned by shareholders who are members of the general public and trade shares on public exchanges) tend to have better management records than privately held companies (those companies where shares are not publicly traded, often owned by the company founders and/or their families and heirs, or otherwise by a small group of investors).