The stock market and its structure
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The structure of the stock market of the Exchange
One of the most authoritative dictionaries of the past gives this definition - Exchange, a place or a building where the going part time sales people and brokers "stock broker" for transactions on securities or commodities.
There are the stock exchange for trading with securities and commodity exchange, for transactions in goods (grain bread, alcohol, sugar, wool, etc.).
More enlightened descendants have made a significant clarification to the definition of this concept. Modern Exchange - a company with rights of legal entities involved in the formation of the wholesale market, goods, raw materials, goods, securities, currencies, etc. through the organization and regulation of stock trading in the Form of vowels, a public auction held by the rules set by the stock exchange. Of course, to trade directly, without intermediaries, at first glance is always beneficial, but experienced people know that the time required to search for a company, can bring all the benefits of such trade to nothing, plus everything, Exchange makes a certain order to the market forces, ensures the integrity, both bidders and completed transactions, and most importantly, in the course of exchange trade is set and the actual price level is clearly visible balance between supply and demand.
Finally amusing incident, which occurred in Australia. There on the exchange trades has been exposed sufficiently unusual package of securities. The most famous bardel country issued 7.5 million shares worth about 2.5 million dollars. To potential buyers do not become victims of the law to obtain money through immoral, the owners put no stock of the public house, and the company owns the land on which it is built. This case clearly shows that the stock exchange can be found the most unexpected securities issuers. full exchange place where the supply and demand, if the stock finds a buyer - it means someone needs.
Elements of the structure of the stock market
The main participants of the stock market, it is of course investors and issuers. Some offer money and other goods, which are generally meant all sorts of securities, but directly they almost never work. Over the centuries, the existence of the stock market, it has developed a clear framework that includes exchanges, brokers, holders of depository and banks.
By law, a private investor is not entitled to independently participate in the exchange auctions, so for the purchase or sale of securities, it is necessary to conclude a contract with the brokerage firm, specialized broker who has a license, and have stock brokers are directly involved in trading on the Stock Exchange . By the way, familiar from newsreels stock halls, where hundreds were heated shouting and waving hands of people are long gone. Now the sales operations in almost all exchanges are carried out by a subscriber systems included in the information network. The Company's registrars, who keep records of shareholders. The Company's depositary, which track the transition of securities that pass from hand to hand, also work via the Internet. It is difficult now to meet the punters, who would lead the calculations cash, which emphasizes the role of banks as one of the main elements of the stock market, and banks often act not only as a creditor, or a conductor settlements between market participants, and are actively engage in securities trading.
The development of the stock market in our country, has an impact not only on the economy but also in the Russian language. As few as 15 years ago, the word "speculator" was of abusive nature now, stock market speculation it is a decent way to make money. However, if you do not like this word, you can be called by the investor, though, as players joke stock market investor - it is still a speculator, but failed.
Term futures - means that the contract is for the supply of a certain product, but not now, and in the future. Its main difference from the options that the parties have an obligation to exchange up to the execution of the contract…