Amman Stock Exchange

November 23, 2010Stock Exchangeby EconomyWatch

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In the year 1999, Amman Stock Exchange was founded as an administrative and financially autonomous, non-profit-making private institution. It also has the authorization to act as an exchange for security trading. The Amman Stock Exchange is controlled by a seven member board of directors. A chief executive officer is appointed to look after everyday transactions and responsibilities which he reports to the board of directors of Amman Stock Exchange . There are more than 60 brokerage firms in Amman Stock Exchange as members.

To achieve international standards Amman Stock Market works randomly with JSC or Jordon Securities Commission on the matters of checking the transactions. The Amman Stock Exchange also has strong connections with different associations, exchanges and international institutions. The Amman Stock Exchange is also member of :

  • Federation of Euro-Asian Stock Exchanges or FEAS
  • The World Federation of Exchanges or WFE
  • Arab Stock Exchanges
  • International Organization for Securities Commissions or IOSCO

The Amman Stock Exchange also provides the following services to its participants:

  • Allowing enterprises to raise capitals by listing them on the exchange
  • Providing modern equipments to its dealers for the betterment of service
  • The Amman Stock Exchange also provides secure trouble free and protective transaction.
  • It also gives special emphasis on its laws of the market to be followed strictly.

The Amman Stock Exchange indexes are used to to show the current market condition and how the exchange has performed in terms of returns. In the year 1980, the Amman Financial Market or the AFM created an Unweighted Price Index appended by sub indexes for Insurance,Banking and Finance Companies,Industry and Services. During that period just under forty stocks were covered and a base value of 100 was set in the year 1980.The base value came under huge change in the year 2004 when it was changed to 1000.

After a long statistical study a new index was launched called the Market Capitalization Weighted Price Index which had nearly 70 stocks under cover during the year 2001.This also had a base value of 100 which was also changed to 1000 in the year 2004.

The components of these indexes are reviewed every year and are adjusted accordingly. Though changes are made in between the years also when some particular stock's trading remains static for a long time.


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