The Role of Insurance Industry in Reducing the Risks of Investment in Stock Exchange Market

Creating confidence in the stock market through a secure environment is one of the main achievements of stock markets in the world. In the stock markets of developed countries, there are markets which provide confidence and reduce the risks resulting from the fluctuation of share prices. These markets are called “stock transaction choice markets”. While comparing stock transaction choice contracts and insurance policies, this paper studies the possibility of reducing the risk resulting from stock purchase through insurance policies in the stock exchange market. Having introduced the theoretical framework of the study, we first reviewed the literature using domestic and overseas references. We then collected our data by means of field study. The data were obtained by means of the questionnaires given to the shareholders in the stock exchange hall and analyzed by software. The results indicated that shareholders are inclined to insure their shares and believe that the intervention of the insurance industry in the stock market, as the confidence provision market, can increase the investments. We conclude with some suggestions based on the findings.