This study finds that the ISX market size is too small, has low liquidity and little depth. Beside, the ISX is dominated by one-sector which is the banking sector that controls around 70% of ISX’s total market capitalization in 2010. Despite that, it has done well especially when; (i) The ISX has opened itself to foreign investors in 2007 for both investments in stock exchange market and for establishing stock companies and the issuing and sale of stocks; and (ii) The ISX switched to electronic trading on 19th of April 2009.

Although, it still needs a big push to prosper in its activities to meet its aim to establish a powerful financial system which provides a good infrastructure for Privatization in Iraq.