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What is the Stock Market
As a general definition, the stock market - is an organized securities trading market. Simply put, it is a meeting place for those who have free money to those who need these tools. Both categories have always been, therefore, all human history is, in fact, the history of the stock market. However, Moscow was not built, and the stock market did not appear suddenly. Brick by brick, through trial and error, our ancestors since the 16th century, staged what today we call the modern model of trading in securities.
It is believed that the stock market was born a few centuries ago, when in Holland and England came the first joint-stock companies. Initially, the shareholders receiving dividends not in cash but in goods. The oldest of the exchanges is considered Amsterdam - here, have been run those trade rules that exist today. Soon there were exchanges in London, Paris and New York. Until the 19th century there were few traded instruments, mainly government and debt, but over time, and paper companies. Shares and bonds became more and more precisely on the stock exchanges were created legendary empire tycoons, Morgan, Harriman, Rockefeller.
The stock market existed in tsarist Russia, but in the 30 years of the 20th century, it ceased to function, for obvious reasons, to re-revive the market, was destined in the early 90s, during the corporatisation and privatization.
And goodbye amusing incident, which occurred in the 18th century in England. One adventurer created the company as described in the prospectus, for a very profitable enterprise, the nature of which is not subject to disclosure. This was promised dividends, £ 100 per annum for each share. Those wishing to become shareholders may make an advance just 2 pounds, and the rest to pay 98 a month, it will be disclosed when the company's goals. In the morning, the founder opened an office, it laid siege to the crowd who want to, to the end of 2000 pounds was collected the day and the next day, adventurer prudently left the shores of "Albion", of course, along with the money.
This story certainly confirms the second truth that free cheese is only in a mousetrap. The moral, the key to success in the stock market - a reality in the risk assessment.
Tools Stock Market
So you have decided to improve their well-being with the help of stock market. What are the tools you'll need? On the stock markets the securities of various kinds, the most important of these stocks and bonds. In addition, investors can operate on the derivatives market instruments, such as futures or options. The most attractive feature of securities the opportunity to increase the capital of their owner, that is what attracts people who want to not only maintain but and increase their savings. However, we should not forget that it is possible not only to get rich, but unfortunately ruined when trading in the stock market. To avoid this it is necessary to assess the risk properly. First we need to determine which securities are closer to you, equity or debt.
Of course, those and others have their advantages and disadvantages. Equity securities, ie shares traded for several centuries, the pioneers of such trade in the 16-17 centuries began Exchange Holland and England. As before, the shares give the holder the right to part of the property of the company, holders of the debt securities, bonds and notes, becomes a kind of creditor, it is assumed that in a certain period, it will return not only what he took in loans and earn interest, and although bondholders do not enjoy the rights of the owner, however, they are part of the benefits. Since dividends to shareholders are calculated only after interest payments on debt securities, and in case of bankruptcy in the first place to pay debts to creditors, and only then, the remaining assets distributed among the holders of the shares, ie, Investments in debt securities are less risky than shares. Of course, the investor for himself determines the permissible degree of risk, but no matter what tools you choose to work in the stock market, we should not forget the good old truth "look before you leap - one cut off" for good reason among stock speculators walks sad joke "One of players in the morning asked how he slept. The answer, like a baby, wake up every hour and cried. " However, fortunately these sentiments among investors do not occur very often, because the stock market traded only incorrigible optimists.
Today, exchange trade options in Russia is carried out only at one site, special section of the RTS FORTS. Its feature is that the underlying