Home Market Börse Berlin
If a company has introduced its shares to trading on Börse Berlin for the first time (Primary Listing), Börse Berlin is home market. Securities whose primary listing has been made on Börse Berlin are marked with a yellow triangle, as significantly eased admission requirements and less strict ongoing obligations compared to those of the Regulated Market apply. This is true particularly regarding disclosure obligations. The requirements for a primary listing vary from exchange to exchange. In addition, other than in the Regulated Market, no legal obligation to provide a prospectus exists at the Open Market. A company can introduce its shares to exchange trading without having to submit a security prospectus. An expose, which needs not to be published, is sufficient. In this case the shares must however not be publicly offered, active advertising for the subscription of shares is against the law.
For the issuer, no obligations pursuant to capital market law result out of a primary listing on the Open Market (with or without security prospectus), only the general duties of stock companies pursuant to the Commercial Code and the German Stock Corporation Act apply. The only resulting obligation is the publication of annual financial statements in the electronic business register.
Stricter requirements apply for all companies that have made their primary listing on Börse Berlin’s Open Market since November 2012. Investors are strongly recommended to inform themselves about the terms and conditions before they make a decision for an investment, particularly by reading the document “Terms and Conditions for the Berlin Open Market” (only available in German) page 3 et seq. A short summary of the admission requirements and ongoing obligations for companies with a primary listing applicable since November 2012 is available for download here (available in English).
Securities on the Open Market whose home market is Börse Berlin are often stocks in narrow markets, i.e. they are not traded frequently. Therefore even small turnover may lead to price fluctuation both upwards and downwards. This high volatility resulting from low trade activity might under some circumstances be misused by disreputable market participants to manipulate prices. In the event of suspected price manipulation Börse Berlin will take immediate measures to protect investors. These may range from a trading halt/suspension to the delisting of the security.
An investment in these companies is only suitable for investors that understand the risks and are also able to carry them.