What is a stock market?

To understand what a stock market is, you need to understand the concept of the stock market. This is a market where securities are a major asset. A stock exchange is a platform on which to trade in the purchase or sale of shares and bonds. With the help of the exchange, you can buy securities, as well as determine the market prices of their sale.

Stock Exchange – a medium for professionals: intermediaries in the market of buyers and sellers. These can be banking companies, brokerage offices, investment offices. Thanks to intermediaries, private investors on the stock exchange have access to all transactions. Stock market activities are subject to securities market regulations.

In addition, there is a type of over-the-counter trade. When choosing this type of intermediaries on the market most often do not need, prefer to act as organizers.

OVER-the-counter trading is a high risk of fraudulent in burglaries, so we recommend that you take stock trading. Previously, the exchange was associated with a noisy office, but now everything is done electronically. The main exchanges – the Moscow Stock Exchange, as well as the International Commodity and Commodity Exchange in St. Petersburg – operate in Russia. The Moscow Stock Exchange sells stocks, foreign currencies, precious metals, futures and binary options. The St. Petersburg Stock Exchange trades in commodities and futures. Stock exchanges trade securities, which in turn are issued by issuers.

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Stock Exchange Features

The Issuer issues securities. It can become a private company, a state or its geographical area, a locality. The purpose of issuing securities is to raise funds. Before i.e. listing shares on the stock exchange, you need to estimate the amount of available cash and form. A company that publishes shares generally borrows funds from securities holders, giving them interest on it by issuing bonds and proceeds from debt. It is also possible for the holder of the securities to co-own: then they are paid shares. The Company must analyse the characteristics of the securities: the size and price of one share, as well as the expiry date. Next, it is necessary to make a state registration of the issue of documents, that is, to make a record in the register. After registration is placing shares on the stock exchange, and there they are already bought by depositors.

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Stock Exchange today

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Investor is called the person who runs deposit funds for profit. Buys and sells securities. But direct sale under these conditions is impossible. In order to enter into a contract, an investor should have a brokerage account. You can buy and sell securities in this account, and there is a history of all transactions. The personal broker will represent the market participant.

For novice investors you need to realize that the exchange requires considerable effort, time, cold mind. It is almost impossible to earn in an easy way. At the beginning of the trip you need to choose a safe type of trading and classic tools, you can try trading in a demo account without losing profits. If you have free money and are interested in the stock market, you can safely try to invest. The main thing is to approach this activity with intelligence and seriousness.

Post What is the Stock Market first appeared on The Globe Trader.

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