Financial Transparency
Transparency in the stock exchange refers to the level of access investors have to information regarding companies listed on the stock exchange, such as price levels, financial reports, and other data that may have a significant impact on the market price of a listed company’s securities.
Businesses listed on the Stock Exchange must ensure the accurate disclosure of all relevant information, including their financial position, performance, and share distribution.
In establishing these relationships, such businesses should focus on:
- The comprehensive disclosure of quantitative information regarding their financial position and operating results;
- Providing investors with equal access to information.
Protection of Minority Shareholders
Businesses listed on the Stock Exchange must ensure equal treatment of all shareholders, including minority shareholders and foreign shareholders.
With regard to shareholders’ rights, such businesses should focus on:
- Developing and improving a system that prevents abusive transactions carried out by employees, governing bodies, and controlling shareholders to the detriment of other minority shareholders;
- Providing comprehensive disclosure of information to shareholders in cases where interested parties undertake actions that may harm the interests of shareholders;
- Prohibiting special benefits granted to certain shareholders.