The inclusion of companies in the stock market commitment do not automatically reflect the legal response, but is located in the heart of the governance of those companies, because of the benefits obtained by companies and shareholders behind the insertion in the stock market, and the decision of any company to apply for inclusion to the market reflects the strategic insight, deep sense of investment, and careful management of the company's shareholders.
As is well known the importance of the stock market to the national economy, which is made available to the joint-stock companies follow the rules of disclosure and clarity to the different owners and investors, as it helps these companies to seek sources of funding for its activities by offering shares to the public in which, as the market listed companies to be more interest by the public, investors and businessmen, and the various media, which contributes to the increased demand for shares of the company, and undoubtedly help in increasing the volume of business and expand its activities.
Based on the foregoing, the process of listing on the market we find comes in the first positions in all markets, being concerned with the commodity that is traded in the market of securities issued by entities requesting inclusion, which is traded in the stock market.
This and the fact that "the Libyan Stock Exchange" the most important tributaries of the national economy and for providing an opportunity to invest savings and funds in securities, for creating an environment in which to achieve significant returns and increase gross domestic product, economic growth and attract local and foreign investments,
Accordingly, the insertion process received considerable attention from the market by the administration of the market, through the issuance of regulations and procedures governing these activities, not to mention the disclosure requirements to be met by entities that are listed in order to be dealing in the market based on the rules of disclosure and transparency, which provides safe handling of all dealers in the market.
What is Listing
Listing means the acceptance by the securities market, a credit market so that the schedules are negotiable.
Listing market, the obligations and benefits.
Article No. (31) Of the Statute of the Libyan stock market, and based on a decision of the General People's Committee No. (436) as follows:
The inclusion of the stock market is compulsory for companies to contribute to national public and private, foreign and joint working in the Libyan capital of not less than (250,000.000) two hundred and fifty thousand Libyan Dinar, in accordance with the terms and conditions set by the market.
Although the mandatory inclusion in the market in accordance with the article referred to above, however, that the companies seeking to list its shares in order to achieve the following advantages:
1. To allow founders to a refund of part of their money invested in the company, with the possibility of a return from it.
2. To allow the company to diversify its sources of funding available to them to finance the company's activities and investments, and not only the funding for the banking sector, and this process reduces the cost of capital, as the inclusion of the company in the market to facilitate the marketing of the new version if they wish to increase their capital or the issuance of bonds or financing, since the presence of market value of company shares in the market to facilitate the appreciation of investors as to whether the issue price is appropriate, and that the listing can be assured of the sale of shares subscribed by the repentance of the readily and easily and quickly.
3. Listing companies gain more credibility because they operate under the supervisory and regulatory believes in transparency and disclosure to investors.
4. Contribute to the fairness of the pricing of listing the shares of listed companies, through the interaction of supply and demand, and links to developments in the market values of the level of performance.
5. Helping the company to emerge and spread, the strengthening of their position for many of the external parties of customers, suppliers, lenders and investors, and increasing inclusion opportunities for the company and its definition, which shows the name of the company and the prices of shares and the movement and circulation of news, activities and financial statements in the publications issued by the market, and within the site of the electronic market, In addition to the various media.
6. Broaden the base of investors in the company through shares, as the ease of the process of deliberation allows for the entry of new shareholders.
7. To achieve liquidity for holders of a company's shares, this would be difficult to imagine the existence of liquidity of the shares in case of non-inclusion.
8. The assumption of the Central Registry, Depository and registry on behalf of the shareholders approved the company's advanced electronic systems, providing the company time and effort required to do so.