Istanbul Gelisim University - Stock market and investors are getting younger

Stock market and investors are getting younger

Stating that there is a remarkable development and change in the distribution of investors trading in ‘Borsa Istanbul’ (Istanbul Stock Market) by age groups, International Economics and Economic Planning Specialist Dr. Yahya Can Dura said, “Stock market and investors are getting younger. It is seen that the 0-39 age range has a share of 9% in the total portfolio value in 2015, 14% in 2018 and 21.1% in 2020.”

Stating that stock investment and stock markets have an important role in economic life, Dr. Yahya Can Dura said, “We need to increase the volume of production factors for economic development and growth. Capital is one of the most important production factors and we can say that stock markets are one of the critical tools for its accumulation”.

“EARNINGS ARE AN IMPORTANT RESOURCE”

Emphasizing that stock exchanges make great contributions to companies and investors operating in economic life through stock investments, in terms of resource supply and capital accumulation, Asst. Prof. Member Yahya Can Dura said, “The returns earned as a result of stock transactions on stock exchanges are an important source for new investments and their financing. Stock markets are also a source of foreign exchange earning transactions through foreign investors. It can also have a positive impact on economic life and parameters with its positive effects on balance of payments balances and exchange rates”.

“MAKES A POSITIVE CONTRIBUTION TO THE COUNTRY ECONOMY”

Indicating that Borsa Istanbul has made a positive contribution to the country's economy by showing a great performance in terms of transaction volume and portfolio values in recent years, Istanbul Gelisim University Head of International Department of Trade and Finance, Asst. Prof. Lecturer Yahya Can Dura said, “In recent years, there has been a remarkable development and change in the distribution of investors trading in Borsa Istanbul by age groups. When the Central Registry Agency (MKK) statistics are examined, we see that there has been a change in favour of young people in the age groups of investors in terms of portfolio value since 2015.”

Dr. Yahya Can Dura continued his statements as follows:

“It is observed that the rate of investors in the 0-29 age group, who had a share of only 1.6% in the total portfolio value in 2015, increased to 2.71% in 2018 and to almost 5% in 2020. It is possible to see a similar increase trend in the 30-39 age group. While the share of this age group was 7% in 2015, it increased to 11% in 2018 and 16.2% in 2020. When we look at the same rates again by combining the two age groups (0-39) the above figures become more striking: 9% in 2015, 14% in 2018 and 21.1% in 2020. It should be noted that the weight of investors over the age of 50 in the total portfolio value decreased sharply, especially after 2018. The drop here is about 11 points. The rate of 61% in 2018 decreased to 49% in 2020. Undoubtedly, this decrease is mathematically due to the increase in the 0-39 age group.”

“YOU HAVE DIFFERENT RISK-TAKING MOTORS”

Stock market and stock investors are getting younger and young people are more advantageous in using technology compared to older age groups said Dura and added, "The differences in their risk-taking motives, their adaptation skills to changing and developing tools-instruments, the differences existing by age groups in the follow-up and processing of information, and the differences in the use of technology by young investors. Some state supports can cause this change."