Stock market in Ottoman Empire: From Dersaadet Tahvilat Borsası to Esham Tahvilat Borsası

After having experienced negative developments inside and outside its territory, the Ottoman Empire initiated an intense modernization process especially in 19th century. This affected political, administrative, military, social and economic life in the Ottoman Empire. As of 18th century, Ottoman Empire had emulated the economic structure of European countries and hence the Empire's economy underwent a change, leading to acceleration of the integration to European financial systems and hence foundation and flourishment of stock market. In 19th century, Galata Bankers took the lead and endeavored to establish the stock market with the incentive of the trading of government bond in the Western stock market after being exposed to the first foreign debt raised from Crimean War. With the legislation of a code of practice in 1873, stock market became a legal entity and was given a name as 'Dersaadet Tahvilat Borsası'. However, after some negativities, the stock market underwent an improvement process and its name was changed as 'Esham ve Tahvilat Borsası' after the legislation of another code of practice in 1906. This study covers the developments that led to establishment of stock market in Ottoman Empire, along with Ottoman Empire's economic structure, the process leading stock market to be legitimate, the transactions and speculations (hava oyunları) in the stock market and the crises that the stock market had gone through.