Bosses protecting their own shares while the stock market is in turmoil

Bosses are also facing a serious test in the harsh fluctuations created in the stock market on the banks. Between September 13 and September 23, during the stressful sessions, bosses' purchases of some companies' shares to protect their small shareholders drew attention. It should not be forgotten that these purchases not only stabilized the shares but also had serious psychological effects on the investor front.

We always talk about what Borsa Istanbul should mean for stock market investors: A stock trading platform that gives you the opportunity to invest, that is, to become a partner in a company whose future you trust. Moreover, if you are not the main shareholder, you have no responsibility for the management of the company. All you need to do is to look at the company's success to date and determine your expectations as to whether the company you have bought shares in will be managed with the same success in the future; if you are a dividend investor, determine whether it pays regular dividends and whether it will continue to do so in the future; if you are a growth investor, analyze whether the company you are a shareholder in will continue to grow rapidly and therefore whether its price will continue to increase. Then sit back and watch with a smile the irrational developments in the stock market over the last few weeks.

THE DIFFERENCE BETWEEN A SMALL INVESTOR AND A BOSS

But if you are a major shareholder in a company whose shares are traded on the stock exchange, your responsibility is many times greater. You cannot just sit back and watch the latest developments. Because there are all kinds of investors investing in your stocks. Some of them may be investors with the intention of buying and selling shares cheaply, dividend investors, growth investors. In other words, it is among your obligations to check whether your stocks are being used as a tool for manipulative movements in the market. Especially if the stocks of your companies are the largest stocks in Borsa Istanbul and have the highest weight on the index. Therefore, in the recent downturn, the bosses of listed companies are also being put to a serious test. The main shareholders of some companies reacted very quickly to the fluctuations in the market and responded to the fluctuations in the market value of their companies at every level and sent a message to investors, "Don't worry, we are here and we have taken swift action to prevent you from being damaged by these extreme fluctuations."

BOSSES ON THE BUY SIDE

But let us examine the positive side of the issue. That is, the purchases of the main shareholders, i.e. the bosses, in the companies that lost value while the banking stocks were going through the roof, but did not rise while the banking stocks were going through the floor. More specifically, bosses who are on the same side as their small shareholders. We analyzed one by one all share purchase transactions in the period between September 13, 2022 and September 23, 2022, when the index rise in Borsa Istanbul with bank shares stopped and the entire market reversed, followed by sharp fluctuations. The number of purchase transactions made by the main shareholders, excluding post-IPO market making transactions, was 72. These transactions took place in the shares of a total of 28 companies. The main shareholders (either in the shares of their own companies or in the shares of their subsidiaries) repurchased a total of 329 million TL in 72 transactions in these 28 shares.

SOME COMPANY SHAREHOLDERS SOLD EVEN AS THE MARKET FELL

Others failed. Let alone postponing their previous share sales decisions at least during these harsh market movements, there were also some who made sudden share sales decisions. Others continued to sell shares they had already been doing for a long time, without much reluctance. But some other major shareholders hit the "pause" button on the calendar they had set a target for in terms of sales volume. This is a stance that can be perceived as an important indicator of confidence, at least for the stock market investors of these companies. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!