At first, the Yangon Stock Exchange will mainly allow shares to be traded, with a market in loan agreements and derivatives to follow after some time, said Dr Maung Maung Thein, deputy minister of the Ministry of Finance and Revenue.
“We will start with shares in the beginning. Afterwards we will slowly move towards the bond market. The next stage will be to operate derivatives and futures markets,” he said.
Maung Maung Thein said derivatives were securities whose price was dependent upon one or more underlying assets. The derivative itself is the contract between two or more parties.
Htun Htun, chief financial officer of First Myanmar Investment Co Ltd, said: “A company will not only be selling investments in the form of shares but also other assets which are dividable will also be slowly introduced to the market.”
The Central Bank of Myanmar is now selling government bonds and notes.
Within the many types of shares, there are common and preferred stocks. Internationally, the most widely dealt type of share is common stock.