Abstract:
This study reviews the role of the Istanbul Stock Exchange as an instrument to host capital entry looking at the issue both from the host country and foreign capital perspectives. In particular, it analyzes the motivating factors behind the decision to internationalize, and the subsequent relations between local versus foreign capital explained along with the effects on financial development with the establishment of the Đstanbul Stock Exchange in the first section. The next section is devoted to the case of the Đstanbul Stock Exchange and the role of the stock exchange in the national economy and comparison to its peers as well as underlining attempt to define the role of foreign investors in the Đstanbul Stock Exchange.
