What is the stock market?

Any country with a liberal market economy, has a stock exchange. This represents one of the most important references, as to demonstrate and clarify that a country is open to the economy. Since the stock market, represents the heart of every stock market.

This is because, as many companies are registered as limited companies. Which consist, in their capital stock. Shares may be purchased by any person, unless the law otherwise noted; own shares is like owning a part of the company, it is said that shareholders have a stake in the company. This is how companies enlarge their capital, especially to invest in future projects, so it is common to start new business companies issue shares to new investors so they can finance new projects.

Well, the stock market, is where these shares are traded equity or assets (technical name in economics of the shares). There is no separate market to the stock market, to be able to sell shares of companies. Similarly, in the stock market, you can sell or buy fixed assets or securities, such as bonds or debentures. There are also other types of financial assets, which are made available to the market, to be bought or sold. Such as government bonds, which belong to the state of each country.

For this, there are organizations or companies specializing in the internal management of the stock exchange. Celebrities such as stockbrokers. Persons or companies that are dedicated full time to the purchase or sale of shares. As well, the study of the various fluctuations that are experienced with the stock prices. Because the results of the companies that own them. Since the high or low value of a share, will be a true reflection of economic performance or performance of a company opens its shares to the stock market. Therefore, is that these brokers are steadily seeing companies going to decide in advance what actions to sell or buy.

That information is transferred to the individuals or companies wishing to buy or sell shares, belonging to other organizations.

Most exchanges are controlled by the Superintendency of Securities, in each country. Which in turn, respond to the ministries. Is the Superintendence, responsible for delivering the regulatory framework of the stock market. This means, the laws governing their actions, as well as, how to buy or sell shares. These being violated, they receive criminal and civil judgments, depending on each case.

The first stock exchange, seventeenth century. Which was erected in Amsterdam, capital of Holland.One of the main economic centers of the century, mainly due to strategic ports that has always had that European nation.

Within the stock market, you can buy or sell shares, out loud or electronically. The word of mouth is the old fashioned way. That is, there is a wheel in the center of the bag, where brokers, depending on your experience and the requirements of its customers, shout loudly that they buy or sell shares.

The other way, is the aforementioned, electronics. Which is done through computer networks, which are providing all the necessary information to buy or sell shares.

Any stock exchange, has indicators on the daily development of actions, in their rise or fall in price.Also, each bag has an indicator on the main actions of the respective country that owns the stock exchange. Thus, as indicated in an effective, if the stock market in a general way, was up or down on any given day.


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