Learning to understand exchange tables

In October, the Supervisory Board of the Armenian Stock Exchange approved the new «Rules for Listing and Delistering Securities», according to which the number of listing sites on the AFB increased from two to four. From now on, securities traded on the AFB will be distributed according to the sites «A», «B», «C» and «C1». This separation will allow more objectively diversify the securities proposed to investors. According to the executive director of the AFB Armen Melikyan, the previously existing sites «A» and «B» determined only one threshold for issuers that none of the Armenian companies reached. Thus, all securities were traded on one, lower, site and a situation was created when shares of promising, profitable companies were at the same level with obvious outsiders of the market. With the existence of four sites, each issuer will be able to take a worthy place among their own companies, and it will be easier for investors to determine the quality parameters of the proposed securities, evaluate the financial condition and activities of issuing companies and make a conscious and justified choice. As A. Melikyan, four categories of listing, are a kind of rating scale that will contribute to determining the objective reputation of issuers. The reform of listing sites, however, does not mean a decrease in the requirements for the exchange to companies that claim the role of leaders of the Armenian stock market. On the contrary, even more stringent requirements will be presented to the leaders. So, only companies have been occupied by companies that have worked on the market for at least three years, which have a capital of at least 1 million, can occupy. US dollars (against 100 thousand — as before), having at least 500 shareholders and whose profitability indicator over the past three years has been at least 15%. More stringent requirements are now presented to the site «B». There may be companies that have existed on the market for at least three years, with their own capital at least 100 thousand dollars and the number of shareholders at least at the C1 site will find a place of the company that do not reach the parameters of the first two levels, but are recognized as solvent. And the lower, fourth, level «C2» is provided for shares of insolvent issuers that are in the process of eliminating. Of the 210 companies in AFB, no one will be able to take positions in category «A». Most issuers (about 190) will have to come to terms with existence at the level of «C1», five — will be recognized as outsiders (level «C2»). And 17 Armenian issuers will be at the site «B», that is, they will be among the leaders.