What is the Stock Market?
A stock market refers to public platforms where financial instruments such as stocks or commodities are bought and sold under specific rules. When one thinks of a stock market, securities exchanges, where instruments like stocks, bonds, and notes are traded, typically come to mind. Examples of securities exchanges include Borsa İstanbul, closely watched by everyone following the live stock market, or the American stock market Nasdaq.
In Turkey, the Borsa İstanbul 100 Index (BIST100 Index) is closely followed by investors. In global markets, stock market indices such as the American Nasdaq's Nasdaq 100 Index are among the most important financial indicators.
In this article where we examine the stock market, you will find answers to questions such as what is a stock market, how to follow the live stock market agenda, how to make stock market commentary, what is Nasdaq 100, what is Borsa İstanbul, which stocks are in the BIST 100 index, which are the largest stock markets, what time does the stock market open, and what is an IPO.
What is a Stock Market?
The term stock market refers to public, regulated, rule-based platforms where stocks, investment funds, bonds, and notes are traded. Additionally, there are commodity exchanges where precious metals like gold are traded, foreign exchange markets for currency trading, and commercial exchanges where agricultural products are sold. Cryptocurrency trading, on the other hand, is done through reliable cryptocurrency exchanges.
In this respect, stock markets are places where the heart of the financial world beats and all kinds of financial transactions are carried out securely. The functioning of stock markets is regulated by laws. In almost every country, stock markets are strictly supervised.
What is a Securities Exchange?
The word "menkul" (securities) means "transferable" or "movable." Valuable papers that are traded in capital markets, are transferable, exchangeable, and can be used as investment tools are called securities. Among securities, stocks, investment funds, government bonds, treasury bills, and derivative instruments can be listed. Platforms where securities are bought and sold are called securities exchanges.
Securities provide their owners with creditor and partnership rights. For example, buying a company's stock means becoming its partner. When you invest in government bonds, which are a type of internal debt instrument, you become a creditor to the treasury.
The public offering of companies also takes place in securities exchanges. For example, if a company in Turkey is going public, it offers its shares to the public through Borsa İstanbul.
What is a Commodity Exchange?
Commodity exchanges are province-based platforms where exchange-listed items, primarily agricultural and livestock products, are bought and sold. For example, some of the products traded at the Istanbul Commodity Exchange include wheat flour, cream, potatoes, dried pinto beans, dried kidney beans, lamb meat…
A commodity exchange differs from a securities exchange or a cryptocurrency exchange not only in terms of the products it sells but also legally. Commodity exchanges are subject to the Union of Chambers and Commodity Exchanges of Turkey and Article 28 of the Chambers and Commodity Exchanges Law.
Among Turkey's largest commodity exchanges, the Istanbul Commodity Exchange, Izmir Commodity Exchange, Konya Commodity Exchange, and Şanlıurfa Commodity Exchange are prominent.
What is a Cryptocurrency Exchange?
Especially since the 2010s, a new type of exchange has emerged and gained popularity: cryptocurrency exchanges.
The answer to the question what is a cryptocurrency exchange is actually very clear. A cryptocurrency exchange is an online platform that allows investors to securely buy and sell cryptocurrencies. In Turkey, cryptocurrency exchanges, or officially crypto-asset platforms, are subject to SPK (Capital Markets Board) supervision. Bitlo is also among the cryptocurrency exchanges licensed by the SPK and brings the best cryptocurrencies to investors.
Stock Market Operating Hours
People often wonder what time the stock market opens or what time the stock market closes. The opening and closing times of stock markets vary from country to country. In Borsa İstanbul, stock trading takes place on weekdays between 10:00 - 13:00 and 14:00 - 18:00. Borsa İstanbul is also closed on public holidays.
European stock markets generally start operating at 09:00 Turkish Time (TRT). The situation is different for Asian and American stock markets. There are multiple stock exchanges in the USA, and these generally allow stock trading between 16:30 - 23:00 TRT. In Japan, which has one of the largest stock exchanges, trading occurs between 05:00 - 11:00 TRT.
However, different operating hours may apply for transaction types other than stock trading. Investors are advised to thoroughly examine the trading calendar of the exchange they will be using.
What is a Stock?
From this part of our article onwards, by "stock market" we will refer to securities exchanges like BIST and Nasdaq. The economic function of these markets is actually this: to enable investors to become partners in companies. Buying stock is fundamentally becoming a partner in a company, and stock markets are places where stocks are bought and sold. But what is a stock, what is its purpose, what does "stock paper" mean, how are stocks bought on the stock market?
A stock is a valuable document that represents a share in a company and naturally documents the shares of its partners. The reason why company shares are called "paper" or "stock paper" in today's stock market jargon is that stocks were actually issued as physical, paper documents until the widespread adoption of the internet. Since stock trading can now be done digitally, most investors do not feel the need to hold physical stocks, i.e., stock paper.
What is the Purpose of a Stock?
We actually explained what a stock is in the previous section, but it's worth taking a closer look at the purpose of this valuable document.
A stock is an investor's certificate of partnership. Let's say you own Aselsan stock. This means you are a partner in Aselsan. However, owning Aselsan stock does not, of course, give you a say in the company's management. Shareholders' voting rights are related to their share percentage and the company's structure. Small shareholders generally have no voting rights or their influence is limited.
Nevertheless, regardless of the amount of stock you hold, if the company distributes dividends, stock provides dividend income.
What is a Stock Dividend?
Companies sometimes distribute a portion of their profits to their shareholders. The portion of profit distributed to shareholders is called a dividend. Stocks of companies that pay dividends are known as dividend stocks. Dividend stocks are one of the keys to generating passive income in the stock market. Therefore, many small investors find companies with the highest dividend yields among dividend-paying companies and invest in them.
Dividend stocks are extremely important for the stock market agenda. The dividend calendar is closely followed by investors. As dividend dates approach, activity may be observed in the stock value of the respective company.
How to Buy Stocks?
Now let's get to the question of how to buy stocks. Stock trading is extremely easy. All you need to do is open an investment account at a bank or another brokerage firm. Then, through the respective brokerage firm's stock trading platform, you can buy and sell the stock papers of any company you wish and become a stock market investor yourself.
However, just like cryptocurrencies, stocks are also volatile assets. If you are entering the stock market, it is extremely important not to act on others' stock market commentary but to invest based on your own research and strategy. Especially if you plan to make short or medium-term investments, you should closely follow the live stock market agenda and breaking news, and thoroughly understand the answers to questions like why the stock market is falling or rising.
What is a Stock Market IPO?
Another way to buy stocks is to participate in stock market IPOs (Initial Public Offerings). From time to time, companies offer their shares to the public on the stock market. Anyone can participate in IPOs to buy a company's shares before they are listed on the stock exchange.
Stock market IPOs are divided into two types: primary public offerings and secondary public offerings:
- A primary public offering is similar to an Initial Coin Offering (ICO) in the cryptocurrency market. It is a process where a company goes public and sells shares to all investors for the first time. Primary offerings provide an opportunity to invest in potentially promising stock papers early on and, naturally, at a much more affordable price. The company then begins trading on the stock exchange.
- A secondary public offering is when a company already trading on the stock exchange issues new shares, providing fresh capital inflow to the company. However, as the number of shares increases, it may lead to a decrease in the company's stock price.
Stock Market Index: BIST 100, Nasdaq 100, and others
For those who follow the stock market agenda or live stock market tracking, there is an indispensable indicator: the stock market index. A stock market index is an indicator that measures the performance of specific stocks and thus reflects the market trend.
To be able to make stock market commentary, it is important to follow live stock market indices. Generally, stock market indices that include the stocks with the highest market capitalization in an exchange, such as the BIST 100 index and the Nasdaq 100 index, are most watched.
What is the BIST 100 Index?
The BIST 100 index includes the shares of the 100 companies with the highest market capitalization and trading volume on Borsa İstanbul. It is one of the leading stock market indices for live tracking of Borsa İstanbul. An indispensable indicator for making stock market commentary and analysis, the BIST 100 helps us understand the performance of the stock market in Turkey.
As of April 2025, many popular stocks such as THY (Turkish Airlines) stock, İşbank shares, Tüpraş stock, etc., are included in the BIST 100 index.
What is the Nasdaq 100 Index?
Nasdaq, along with the NYSE, is known as the largest American stock exchange. However, unlike the NYSE, many technology company stocks, from Apple shares to Microsoft shares, are traded on the Nasdaq exchange. Therefore, investors place special importance on the Nasdaq exchange and the Nasdaq 100 index.
The Nasdaq 100 index shows the performance of the 100 stocks with the highest market capitalization traded on this exchange.
Stock Market Commentary and Analysis
Stock market commentary and analysis are extremely important not only for making money from the stock market but also for understanding a country's economic outlook. The way to make realistic stock market commentary requires following not only stock market indices but also the business world, geopolitical developments, and macroeconomic data.
World's Top 5 Stock Exchanges
In terms of market capitalization and trading volume, the world's largest stock exchanges are Asian and American. Here are the 5 stock exchanges with the highest trading volumes in the world, according to the World Federation of Exchanges' November 2024 data, and their trading volumes:
- New York Stock Exchange (NYSE) - $31,649,898
- NASDAQ - $30,128,325
- Shanghai Stock Exchange - $7,170,382
- Japan Exchange Group (JPX) - $6,400,158
- Euronext - $5,687,221