Market structure and financial instruments

At this point in time it is possible to trade on the Romanian capital market in both Romanian and foreign shares, bonds, rights and derivative financial instruments. The bonds are both municipal and corporate bonds. They are traded on a special section of the market. The rights are traded only when an issuer announces an increase in its share capital, thus the shareholders thereof can exercise their right to acquire them first, at a price below that of the market. Those who do not wish to exercise their right may sell them to other investors willing to acquire the shares.

The Bucharest Stock Exchange is a market operator mainly administrating three markets: the regulated spot market, the RASDAQ market and the regulated derivatives market. The regulated spot market trades first rate companies' shares, which in turn are divided as follows: Tier I- where only the most liquid shares of companies with a minimum share capital of 8 million Euros are listed; Tier II- where shares of companies with a minimum share capital of 2 million Euros are listed; Plus Tier - where shares from both tiers mentioned above may be traded, with the addition that the issuers thereof are obliged to provide much more detailed information to their investors in terms of activity reports than otherwise required.