Stock Market

سوق الأسهم (البورصة)

The stock market is an organized marketplace where shares of listed companies are bought and sold at prices set by supply and demand. In Egypt this role is played by the Egyptian Exchange (EGX), which runs the trading sessions and listing and disclosure rules under the supervision of the Financial Regulatory Authority (FRA).

Example

A company that needs capital to build a factory can sell shares to investors instead of borrowing. The investors get a claim on future profits; the company gets money it does not have to repay on a schedule.

Why it matters

The market performs two jobs at once: it lets companies raise money, and it gives existing owners a way to sell without asking the company for their money back. The second job is what makes the first one possible.

A common mistake

Thinking that when you buy a share your money goes to the company. It goes to whoever sold you the share. The company only receives money when it issues new shares, such as at an IPO or a rights issue.

Live example from the Egyptian market

The EGX 30 index stands at 56,280.2 today (-0.39%), +37.61% year to date. Details →

Data as of ; refreshes with every session or disclosure.

Related terms

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