Public offering of shares and their sales process

Shares are certificates whose capital is split into allotments and which are arranged in accordance with the laws by the capital shareholders who can in return present allotment bill which has the quality of valuable paper; and they are bills which provide the right to represent a certain amount of their capital and the right of participation in that rate to their owners. Shares possess the quality of valuable papers which occupy the largest space among the securities.Shares do not have the quality of being a means for major investors by itself and they are a means of capital market which provides the necessary capital accumulation for the gathering of the small savings of the large public in enterprises and for a rapid development.The type of shares which constitute a typical example of the securities is regulated explicitly in both Turkish Commercial Code article no. 413 and Securities Exchange Act and relevant notifications. Shares which are made out to bearer are used densely because of their easiness of turnover.Public offering of shares, partnerships that can issue shares, registration of shares to the Board and the sales process are regulated in the notifications issued by Securities Exchange Act and the Board. Who can issue shares are primarily incorporated companies, State Economic Enterprises including the ones that are in the scope of privatization, local administrations and the firms, administrations and enterprises which operate in accordance with the special legislations about these.The most important problem about the public offering of shares and their sales is the delivery time of the shares and the function of registration of the public offering of shares through capital increase.Shares are dematerialized with the 10/A clause which is added to Securities Exchange Act. It is the system in which the means of capital market and the rights about this means are registered in computer media by Central Registry Agency in consideration of issuers, intermediary firms and title holders and in which the notification date to Central Registry Agency is predicated on for the alleging of the rights over these means to the third persons. The said system also forms a contradiction to the basic legal processes such as pledge, usufruct and confiscation in the clauses of the Commercial Code related to especially the shares and bills the incorporated companies will issue.