Which Stocks Should You Invest In?

As you know, a share represents ownership of a portion of a joint-stock company. Companies differ in many ways: by the nature of their business (providing services, manufacturing and/or selling goods, or performing works), by the geographical scope of their operations (national, regional, or international), whether they are considered strategically important, and many other factors.

International investors generally prefer to invest in blue-chip stocks, meaning shares of companies that are included in the official list of a stock exchange, commonly referred to as the listing. Experienced Western investors often avoid purchasing shares of companies that are not listed.

A stock exchange listing serves as a form of assurance that a joint-stock company operates transparently. Listed companies are required to prepare and disclose their financial statements in accordance with International Financial Reporting Standards (IFRS), undergo mandatory independent external audits, protect shareholders’ rights, comply with applicable legislation, and allocate at least 25% of their net profit to dividend payments. In addition, companies seeking listing must have a Board of Directors, with at least one-third of its members serving as independent professional directors.

Alongside listed securities, the stock exchange also offers non-listed shares that deserve investors’ attention. Many of these companies pay dividends to their shareholders and present attractive opportunities for speculative trading, although their management has chosen not to seek a stock exchange listing.

In practice, approximately 90% of joint-stock companies in the Kyrgyz Republic fall into the category of non-listed companies.

Embark on the path of investing, and with every step you will discover new and exciting opportunities.