The Tel Aviv Stock Exchange plays an important role in the growth and development of the Israeli economy and serves as a meeting place between Israeli companies operating in the market and the public. The TASE leads the Israeli capital market and contributes to the economy and society through advanced trading and clearing infrastructures.
Many investment products are traded on the TASE, ranging from stocks and bonds to ETNs and derivatives, suitable for investors with diverse investment needs. The fact that trading in all types of securities takes place under one roof optimizes management and operations, making it much easier for the investors and the companies.
A stock is a security that enables the issuing company to raise capital from TASE investors. The investors become partners in the company, and as the company increases its activity and profits, so investors can benefit from its fruits.
Convertible securities are - true to their name - convertible into other securities. For example: option warrants, convertible bonds.
Bonds enable companies and the government to raise money from the public, in a process similar to that in which we take a loan from the bank. The company that issues the bond returns the debt to us at a predetermined date. When purchasing a bond, the buyer gives a loan to the entity issuing the bond.
Treasury bills (Makam) are a type of government bond, but in this case, the Bank of Israel issues it to the public for the government. A new T-Bill is issued every month, for a duration of one year.
An ETN is a type of security traded on a stock exchange issued by ETN companies that allows us to invest in securities from a certain market or sector in one single simple act, such as one of the indices. Thus, we also earn savings on the commission that would have been charged for the purchase of each security separately.
An exchange-traded foreign fund is an exchange-traded fund (ETF) issued by a foreign issuer, the manager of which, having received a permit from the ISA to market and distribute foreign funds in Israel, applied to the Tel Aviv Stock Exchange (TASE) to list them on the exchange and was duly approved by TASE to do so.
A mutual fund is an investment product that allows investment in a variety of securities in accordance with a predetermined policy. The fund is managed by a fund management company (fund manager). However, mutual funds are not traded on the TASE.