A stock market , equity market or stock market is the buyer and seller aggregation (loose network of economic transactions, not physical facilities or discrete entities) of stock (also called shares), representing a claim of ownership of the business; this may include securities listed in the public stock market as well as those that are privately traded only. The latter example includes shares of private companies being sold to investors through the equity crowdfunding platform. Stock exchanges include general equity shares and other types of security, e.g. corporate bonds and convertible bonds.
Video Stock market
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Stocks are categorized in various ways. One way is with the country where the company is domiciled. For example, Nestlà ©  © and Novartis are domiciled in Switzerland, so they may be considered part of the Swiss stock market, although their shares may also be traded in other countries, for example, as American Depository Receipts (ADRs) in the US. stock market.
Until mid-2017, the size of the world stock market (total market capitalization) of about US $ 76.3 trillion. By country, the largest market is the United States (about 34%), followed by Japan (about 6%) and the UK (about 6%). These numbers are increasing in 2013.
By 2015, there are a total of 60 stock exchanges in the world with a total market capitalization of $ 69 trillion. Of these, there are 16 exchanges with a market capitalization of $ 1 trillion or more, and they account for 87% of global market capitalization. Aside from the Australian Securities Exchange, these 16 exchanges are based on one of three continents: North America, Europe and Asia.
Maps Stock market
Stock exchange
A stock exchange is an exchange (or exchange) in which stock brokers and traders can buy and sell stocks, bonds, and other securities. Many large companies have their shares listed on the stock exchange. This makes stocks more liquid and thus more attractive to many investors. The exchange may also act as the guarantor of the settlement. Other shares may be traded "over the counter" (OTC), ie through dealers. Some large companies will have their shares listed on more than one exchange in different countries, so as to attract international investors.
Stock exchanges can also include other types of securities, such as bonds with fixed interest (bonds) or (more rarely) derivatives that are more likely to be traded OTC.
Trading
Trading on the stock market means transferring money from stock or security from seller to buyer. This requires both parties to agree on the price. Equity (stock or stock) provides an ownership interest in a particular company.
Participants in the stock market range from individual small shareholders to larger trader investors, which can be based anywhere in the world, and may include banks, insurance companies, pension funds and hedge funds. Buy or sell orders can be executed on their behalf by the stock exchange trader.
Some exchanges are physical locations where transactions take place on the trading floor, with a method known as open protest. This method is used in some stock exchanges and commodity exchanges, and involves traders who yell bids and offer prices. Another type of stock exchange has a computer network in which trades are made electronically. Examples of such exchanges are NASDAQ.
Potential buyers bid a specific price for a stock, and a potential seller ask a certain price for the same stock. Buying or selling in the market means you will receive each the query price or the offer price for the stock. When the bid and ask price matches, the sale is made, based on who quickly he can, if there are many bidders or askers for a certain price.
The purpose of securities exchange is to facilitate the exchange of securities between buyers and sellers, thus providing the market. Exchange provides real-time trading information on registered securities, facilitating price discovery.
The New York Stock Exchange (NYSE) is a physical exchange, with a hybrid marketplace for placing orders electronically from any location or on the exchange floor. Orders that are executed on the stock exchange floor by exchanging members and flowing to the floor broker, which electronically orders the floor trading post for a Specific Market Designer ("DMM") for the shares to trade orders. DMM's job is to maintain a two-tailed market, making orders to buy and sell securities when no other buyer or seller is available. If a spread exists, no immediate trade - in this case the DMM can use its own resources (money or stock) to cover the difference. Once trades have been made, details are reported on the "ribbon" and sent back to the brokerage firm, which then notifies the investor placing the order. Computers play an important role, especially for trading programs.
NASDAQ is a virtual exchange, where all trades are done over a computer network. The process is similar to the New York Stock Exchange. One or more NASDAQ market makers will always provide bids and asking prices where they will always buy or sell their 'stock'.
The Paris Bourse, now part of Euronext, is an order-driven electronic stock exchange. It was automatic in the late 1980s. Before the 1980s, it consisted of an open protest exchange. Stockbrokers meet on the trading floor of Palais Brongniart. In 1986, the CATS trading system was introduced, and the order matching process was fully automated.
People who trade in shares will prefer to trade on the most popular exchanges because it provides the largest number of potential partners (buyers for sellers, sellers for buyers) and perhaps the best price. However, there are always alternatives such as brokers who try to unite the parties to trade outside the exchange. Some of the third popular markets are Instinet, and then Islands and Islands (the latter two since it has been acquired by Nasdaq and NYSE, respectively). One advantage is that this avoids exchange commissions. However, it also has issues such as reverse selection. The financial regulator is looking for a dark pool.
Market participants
Market participants include individual retail investors, institutional investors such as mutual funds, banks, insurance companies and hedge funds, as well as trades of publicly traded companies in their own stock. Some studies show that institutional investors and corporate trades in their own stocks generally receive adjusted returns with higher risk than retail investors.
A few decades ago, most buyers and sellers were individual investors, like wealthy businessmen, usually with a long family history for a particular company. Over time, markets become more "institutionalized"; buyers and sellers are mostly institutions (eg, pension funds, insurance companies, mutual funds, index funds, exchange-traded funds, hedge funds, investor groups, banks and various other financial institutions).
The emergence of institutional investors has brought some improvement in market operations. There is a gradual tendency for "fixed" (and exorbitant) costs to be reduced for all investors, partly from a decrease in administrative costs but also assisted by large institutions that challenge the oligopolistic approach of brokers to set standard fees. The current trends in stock market investments include cost reductions due to computerized asset management called Robo Advisers in the industry. Automation has lowered portfolio management costs by lowering costs associated with overall investment.
Trends in market participation
Share market participation refers to the number of agents that buy and sell equity-backed securities either directly or indirectly in a financial exchange. Participants are generally divided into three different sectors; households, institutions, and foreign traders. Direct participation occurs when one of the above entities buys or sells securities in its own name on the exchange. Indirect participation occurs when institutional investors exchange shares on behalf of individuals or households. Indirect investments occur in the form of joint investment accounts, retirement accounts, and other managed financial accounts.
Indirect vs. direct investment
The total value of equity-backed securities in the United States increased by more than 600% in 25 years between 1989 and 2012 as market capitalization increased from $ 2.790 billion to $ 18.668 billion. Ownership of individual direct shares rose slightly from 17.8% in 1992 to 17.9% in 2007, with the median value of these holdings increasing from $ 14,778 to $ 17,000. Indirect participation in the form of pension accounts increased from 39.3% in 1992 to 52.6% in 2007, with the median value of this account more than doubling from $ 22,000 to $ 45,000 at the time. Rydqvist, Spizman, and Strebulaev attribute differential growth in direct and indirect ownership to differences in the way each is taxed in the United States. Investments in pension funds and 401k, the two most common vehicles of indirect participation, are taxed only when funds are withdrawn from the account. Instead, the money used to buy shares is directly taxed as the dividends or capital gains they generate for holders. In this way, the current tax code provides an incentive to individuals to invest indirectly.
Participation by income and wealth level
The level of participation and ownership value differ significantly across all layers of income. At the bottom of income quintiles, 5.5% of households own shares directly and 10.7% share indirectly in the form of retirement accounts. The highest income decile has a direct participation rate of 47.5% and the indirect participation rate in the form of retirement account is 89.6%. The median value of the shares held directly in the lowest income quintile was $ 4,000 and $ 78,600 in decile on revenue in 2007. The median value of the indirectly held shares in the form of pension accounts for the same two groups in the same year was $ 6,300 and $ 214,800 respectively. Because the Great Recession of 2008 households in the lower half of the income distribution has reduced their participation rate either directly or indirectly from 53.2% in 2007 to 48.8% in 2013, while in the same period households in the top deciles of income distribution Participation slightly increased 91.7% to 92.1%. The average value of direct and indirect ownership in the bottom of the distribution of income moves slightly down from $ 53,800 in 2007 to $ 53,600 in 2013. In the top decile, the average value of all holdings decreased from $ 982,000 to $ 969,300 in time the same one. The average value of all shareholdings in all income distributions is $ 269,900 in 2013.
Participation by head of household race and gender
The race composition of stock market ownership shows white-headed households almost four and six times more likely to own shares directly than Black and Hispanic headed households. In 2011 the national direct participation rate was 19.6%, for white households the participation rate was 24.5%, for the black household it was 6.4% and for the Hispanic household it was 4.3% Indirect participation in the form 401k ownership shows the same pattern with national participation rate of 42.1%, 46.4% for white households, 31.7% for black households, and 25.8% for Hispanic households. Households headed by a married couple participate at a rate above the national average with 25.6% participating directly and 53.4% ​​participating indirectly through retirement accounts. 14.7% male-headed households participated in the market directly and 33.4% owned shares through pension accounts. 12.6% of female headed households own direct shares and 28.7% own shares indirectly.
Determinants and possible explanations for stock market participation
In a 2003 paper by Vissing-JÃÆ'¸rgensen tries to explain disproportionate participation levels along the wealth and income groups as a function of fixed costs associated with investments. His research concludes that a flat fee of $ 200 per year is enough to explain why almost half of all US households do not participate in the market. The level of participation has been shown to be highly correlated with the level of education, promoting the hypothesis that information and transaction costs of market participation are better absorbed by the more educated households. Behavioral economist Harrison Hong, Jeffrey Kubik and Jeremy Stein point out that the level of socialization and community participation has a statistically significant impact on individual decisions to participate in the market. Their research shows that social individuals living in countries with higher participation rates than the 5% average are more likely to participate than individuals who do not share these characteristics. This phenomenon is also explained in terms of cost. Knowledge of market function diffuses through society and consequently lowers transaction costs associated with investments.
History
Initial history
In the 12th century France, the planners of change were concerned with managing and managing the debts of agricultural societies on behalf of the banks. Because these people also trade with debt, they can be called the first broker. A common misconception is that, in late 13th-century Bruges, commodity merchants gathered in the house of a man named Van der Beurze, and in 1409 they became "Brugse Beurse", instituting what had, to date it was an informal meeting, but in fact, the Van der Beurze family owned a building in Antwerp where the meetings took place; Van der Beurze owns Antwerp, as most traders in that period, as the main place to trade. This idea quickly spread around Flanders and neighboring countries and "Beurzen" was soon opened in Ghent and Rotterdam.
In the mid-13th century, Venetian bankers began trading government securities. In 1351, the Venetian government was prohibited from spreading rumors intended to lower the price of government funds. Bankers in Pisa, Verona, Genoa, and Florence also began trading in government securities during the 14th century. This is only possible because it is an independent city-state that is not ruled by a duke but an influential citizen council. The Italian company was also the first to issue shares. Companies in the UK and the Low Countries followed in the 16th century.
Birth of the formal stock market
In the 17th and 18th centuries, the Dutch pioneered several financial innovations that helped lay the foundations of the modern financial system. While the Italian city-state produces the first transferable government bonds, they do not develop the other materials necessary to produce a fully fledged capital market: the stock market. In the early 1600s, the Dutch East India Company (VOC) became the first company in history to issue bonds and stock shares to the general public. As Edward Stringham (2015) notes, "companies with dates can be transferred back to classic Rome, but this usually does not last long and there is not a sizable secondary market (Neal, 1997, page 61)." The Dutch East India Company (founded in 1602) is also the first joint-stock company to acquire a fixed capital stock and as a result, a sustained trade in company shares takes place on the Amsterdam Stock Exchange. Soon after, trade that lived in various derivatives, including options and repos, appeared in the Amsterdam market. Dutch merchants also pioneered short selling - a practice banned by the Dutch authorities in early 1610. The Amsterdam-based entrepreneur Joseph de la Vega Confusion de Confusiones (1688) is the earliest known book on stock trading and the first book on how to work on the stock market (including the stock market).
There is now a stock market in almost every developed and developing country, with the world's largest markets in the United States, Britain, Japan, India, China, Canada, Germany (Frankfurt Stock Exchange), France, South Korea and the Netherlands..
Importance
As Austrian school economist Ludwig von Mises notes, "The stock market is essential to the existence of capitalism and private ownership.That means that there is a functioning market in the exchange of personal titles with means of production.not a sincere ownership of private capital without the stock market: it is impossible there is real socialism if such a market is allowed to exist. "
Function and destination
The stock market is one of the most important ways for companies to raise money, along with a generally more impressive debt market but not publicly traded. This allows businesses to be publicly traded, and increases additional financial capital for expansion by selling shares of company ownership in the public market. The liquidity provided by an investor exchange allows the holder to sell securities quickly and easily. This is an attractive feature of investing in stocks, compared to other less illiquid investments like property and other immoveable assets. Some companies are actively increasing liquidity by trading on their own shares.
History has shown that stock prices and other assets are an important part of the dynamics of economic activity, and can influence or become indicators of social atmosphere. The economy in which the stock market is on the rise is considered a rising economy. The stock market is often regarded as a major indicator of the strength and economic development of a country.
An increase in stock prices, for example, tends to be associated with an increase in business investment and vice versa. Stock prices also affect household wealth and their consumption. Therefore, the central bank tends to oversee the control and behavior of the stock market and, in general, on the smooth functioning of the financial system. Financial stability is the raison d'ÃÆ'ªtre of central banks.
The exchange also acts as a clearinghouse for each transaction, which means that they collect and deliver shares, and guarantee payment to securities sellers. This eliminates risks to individual buyers or sellers who may fail to be processed by the partner.
The smooth functioning of all these activities facilitates economic growth at a lower cost and risks the company promotes the production of goods and services as well as the possibility of employment. In this way the financial system is assumed to contribute to an increase in prosperity, although there is controversy over whether an optimal banking system is market-based or market-based.
New events such as the Global Financial Crisis have encouraged increased oversight of the impact of stock market structures (called micro-markets), particularly for financial system stability and systemic risk transmission.
Relationship with the modern financial system
The financial system in most western countries has undergone tremendous transformation. One characteristic of this development is disintermediation. Part of the funds involved in saving and financing, flows directly to the financial markets instead of being directed through traditional bank lending and deposit operations. The general public interest in investing in the stock market, either directly or through mutual funds, has become an essential component of this process.
Statistics show that in recent decades, stocks have become an increasingly large part of household financial assets in many countries. In the 1970s, in Sweden, deposit accounts and other highly liquid assets with little risk accounted for nearly 60 percent of household financial wealth, compared to less than 20 percent in the 2000s. The main part of this adjustment is that the financial portfolio has gone directly to stocks but many good things now take the form of various types of institutional investments for individual groups, for example, pensions, mutual funds, hedge funds, premium insurance investments, etc.
A trend toward higher-risk savings has been emphasized by the new rules for the majority of funds and insurance, allowing a higher proportion of stocks to bonds. A similar trend can be found in other developed countries. In all developed economic systems, such as the EU, the United States, Japan and other developed countries, the trend is the same: savings have shifted from traditional bank deposits (guaranteed by the government) to riskier securities of one kind or another ".
The second transformation is to move into electronic commerce to replace human trafficking from registered securities.
United States S & amp; P stock market returns
(assuming 2% annual dividend)
Compared to Other Asset Classes Over the long term, investments in well diversified stock portfolios such as the S & amp; P 500 outperformed other investment vehicles such as Treasury Bills and Bonds, with S & amp; P 500 has a geometric annual average of 9.55% from 1928 to 2013.
Stock market behavior
Investors can temporarily move the financial price from market equilibrium. Excessive reactions can occur - so excessive optimism (euphoria) can encourage excessive or excessive pessimism prices can drive the price too low. Economists continue to argue whether financial markets are generally efficient.
According to one interpretation of the efficient market hypothesis (EMH), only changes in fundamental factors, such as the margin, profit or dividend outlook, should affect the stock price beyond the short run, where random 'noise' in the system may prevail. The 'harsh' efficient market hypothesis did not explain the cause of events like the 1987 crash, when the Dow Jones Industrial Average tumbled 22.6 percent - the biggest one-day decline ever in the United States.
This event indicates that stock prices may drop dramatically even though there is no general agreement on the exact cause found: a thorough search fails to detect any 'sensible' developments that might have caused an accident. (Note that such events are predicted to happen by chance, though very rarely.) It also seems to be a more common case that many price movements (beyond those predicted to occur 'randomly') are not caused by new information; a study of the 55th largest single-day stock price movement in the United States in the post-war period seems to confirm this.
A 'soft' EMH has emerged that does not require prices to stay at or near equilibrium, but only market participants can not systematically profit from a momentary market inefficiency. In addition, while EMH predicts that all price movements (in the absence of fundamental information changes) are random (ie, non-trend), many studies have shown marked trends for the stock market for trends over a period of weeks or longer. Various explanations for this large and seemingly non-random price movement have been officially announced. For example, several studies have shown that changes in risk estimates, and the use of certain strategies, such as stop-loss limits and values ​​at risk limits, can theoretically cause financial markets to over-react. But the best explanation seems to be that the distribution of stock market prices is non-Gaussian (in this case EMH, in its current form, will not apply strictly).
Other studies have shown that psychological factors can lead to overly anomalous stock price movements (as opposed to EMHs who think the behavior is 'undone'). Psychological research has shown that people tend to 'see' patterns, and will often see a pattern in what is actually just sound, such as seeing familiar shapes in clouds or ink stains. In the current context, this means that a succession of good news about the company can cause investors to over-react positively, pushing prices up. A good payback period also increases investor confidence, reducing their (psychological) risk threshold.
Another phenomenon - also from psychology - that works against objective judgment is group thinking . As a social animal, it is not easy to hold a very different opinion from the majority of the group. An example that may be familiar to a person is the reluctance to enter an empty restaurant; people generally prefer their opinions to be validated by others in the group.
In one paper, the author draws an analogy with gambling. In normal time, the market behaves like a roulette game; the chances are known and largely independent of investment decisions from different players. However, at the time of market pressure, the game becomes more like poker (lead behavior takes over). The players now have to put a heavy burden on the psychology of other investors and how they tend to react psychologically.
In the period leading up to the 1987 crash, less than 1 percent of the analyst's recommendations were to sell (and even during the bear market 2000-2002, the average did not rise above 5%). In 2000, the media reinforced the general euphoria, with reports of rising stock prices and the idea that large sums of money could be quickly gained in the new economic stock market.
The stock market plays an important role in industrial growth that ultimately affects the economy through the transfer of available funds from units with excess funds (savings) to those who suffer from deficit funds (loans) (Padhi and Naik, 2012). In other words, the capital markets facilitate the movement of funds among the units mentioned above. This process leads to an increase in available financial resources which in turn affects positive economic growth. In addition, both economic and financial theories argue that stock prices are influenced by macroeconomic trends.
Many different academic researchers have declared companies with low P/E ratios and smaller firms have a tendency to outperform the market. The research undertaken suggests that medium-sized companies outperform large hat firms and smaller firms have historically higher profits.
Irrational Behavior
Sometimes, markets seem to react irrationally to economic or financial news, even if the news is likely to have no real effect on the fundamental value of the securities themselves. However, this market behavior may be more real than real, as often such news is anticipated, and counterreaction can occur if the news is better (or worse) than expected. Therefore, the stock market can be affected both by press releases, rumors, euphoria and mass panic.
During the short term, stocks and other securities may be beaten or backed by a number of rapid marketplace events, making stock market behavior unpredictable. Emotions can drive prices up and down, people are generally not as rational as they think, and the reasons for buying and selling are generally accepted.
Behavioris argues that investors often behave irrationally when making investment decisions so that it is wrong in determining the price of securities, leading to market inefficiency, which in turn is an opportunity to make money. However, the whole idea of ​​EMH is that a non-rational reaction to this information is canceled, leaving the rationally determined stock price.
The biggest gain in the Dow Jones Industrial Average in a single day is 936.42 points or 11%.
Crashes
Stock market crashes are often defined as a sharp decline in stock prices of stocks listed on the stock exchange. In line with various economic factors, the reasons for stock market crashes are also due to panic and investment losing public confidence. Often, the stock market falls to end the bubble of speculative economy.
There was a famous stock market crash that had ended in the loss of billions of dollars and the destruction of wealth on a grand scale. More and more people are involved in the stock market, mainly because social security and pension plans are increasingly privatized and associated with stocks and bonds and other elements of the market. There are a number of famous stock market crashes like Wall Street Crash of 1929, fall of stock market 1973-4, Black Monday 1987, Dot-com bubble in 2000, and Stock Market Crash in 2008.
One of the most famous stock market crashes started October 24, 1929, on Black Thursday. The Dow Jones Industrial Average lost 50% during the stock market this fall. That was the beginning of the Great Depression. Another famous accident occurred on October 19, 1987 - Black Monday. The accident started in Hong Kong and quickly spread throughout the world.
By the end of October, the stock market in Hong Kong had dropped 45.5%, Australia 41.8%, Spain 31%, UK 26.4%, United States 22.68%, and Canada 22.5%. Black Monday alone is the biggest single-day percentage drop in the history of the stock market - the Dow Jones down 22.6% on the day. The names "Black Monday" and "Black Tuesday" were also used for October 28-29, 1929, which followed Terrible Thursday - the first day of the stock market crash in 1929.
The crash of 1987 caused some puzzles - news and major events did not predict the disaster and the visible reason for the unidentified collapse. This event raises the question of many important modern economic assumptions, namely, the theory of rational human behavior, the theory of market equilibrium and efficient market hypothesis. For some time after the accident, trading on stock exchanges around the world was stopped, because the exchange computer was not functioning properly due to the large amount of trade received at one time. Termination in this trade allows the Federal Reserve System and other central banks of countries to take steps to control the spread of the worldwide financial crisis. In the United States, the SEC introduced several new measures of control to the stock market in an effort to prevent the reoccurrence of Black Monday events.
Since the early 1990s, many of the largest exchanges have adopted electronic 'matching machines' to bring buyers and sellers together, replacing open protest systems. Electronic commerce now accounts for the majority of trade in many developed countries. Computer systems are enhanced in the stock market to handle larger trading volumes in a more accurate and controlled manner. The SEC modifies margin requirements in an effort to lower the volatility of common stock, stock options, and futures markets. The New York Stock Exchange and Chicago Mercantile Exchange introduced the concept of circuit breakers. The circuit breaker stops trading if the Dow decreases the number of points specified for the specified amount of time. In February 2012, the Canadian Industrial Investment Regulatory Agency (IIROC) introduced a single share circuit breaker.
- New York Stock Exchange (NYSE) circuit breaker
Stock market predictions
Tobias Preis and his colleagues Helen Susannah Moat and H. Eugene Stanley introduced methods to identify online precursors for stock market movements, using trading strategies based on search volume data provided by Google Trends. Their analysis of Google's search volume for 98 terms from various financial relevances suggests that increasing search volumes for financially relevant search terms tend to precede major losses in financial markets.
Stock market index
Price movements in the market or part of the market are caught in a price index called the stock market index, where there are many, for example, the S & amp; P, FTSE and Euronext. Such indexes are typically subject to market capitalization, with the weight reflecting the share's contribution to the index. Index constituents are often reviewed to include/exclude stocks to reflect a changing business environment.
Derivative instrument
Financial innovation has brought many new financial instruments whose payments or value depend on stock prices. Some examples are exchange-traded funds (ETF), stock indices and stock options, equity swaps, single stock futures, and stock index futures. The latter two can be traded on futures exchanges (which are different from stock exchanges - their historical track back to commodity futures exchange), or over-the-counter traded. Since all these products are just originated of stock, they are sometimes considered to be traded in the derivative market (hypothetically), rather than the (hypothetical) stock market.
Leveraged Strategy
Shares that are not owned by traders can be traded using short selling; the purchase of a margin can be used to purchase shares with borrowed funds; or, derivatives can be used to control large amounts of shares with a much smaller amount of money than is required by direct purchase or sale.
Short sales
In short sales, the trader borrows the stock (usually from the broker who holds his client's share or his own shares in the account to lend it to the short seller) then sells it on the market, betting that the price will fall. Traders end up buying back stocks, making money if prices go down in the meantime and losing money if it goes up. Get out of short positions by buying back shares called "cover." This strategy can also be used by unscrupulous traders in illiquid or thinly traded markets to artificially lower the price of a stock. Therefore most markets prevent short selling or place restrictions on when and how short sales may occur. The practice of naked shorting is illegal in most (but not all) stock markets.
Purchase margin
In purchasing margins, traders borrow money (with interest) to buy stocks and expect to rise. Most industrialized countries have a regulation that requires that if the loan is based on a guarantee of other shares owned by the trader directly, it can be a maximum percentage of the other stock values. In the United States, margin requirements have been 50% over the years (ie, if you want to make a $ 1000 investment, you need to provide $ 500, and there is often a maintenance margin under $ 500).
Margin call is created if the total value of investor accounts can not support the loss of trade. (After any impairment of the additional funds the securities may be required to maintain the account's equity, and with or without any marginal security notification or otherwise in the account may be sold by the broker to protect its lending position Investors are responsible for any deficiencies that follow such forced sales. )
The regulation of margin requirements (by the Federal Reserve) was implemented after Crash of 1929. Before that, speculators typically only had to install at least 10 percent (or even less) of the total investment represented by the purchased shares. Other rules may include a ban on driving free: placing an order to buy shares without paying initially (usually there is a three-day grace period for stock shipments), but then selling them (before three days out) and using part of the proceeds to make the original payment (assuming that the value of the stock does not decrease temporarily).
New publication
Global equity issuance and equity-related instruments reached $ 505 billion in 2004, a 29.8% increase from the $ 389 billion raised in 2003. Initial public offering (IPO) by US publishers increased 221% with 233 offers generating $ 45 billion, and IPOs in Europe, the Middle East and Africa (EMEA) increased 333%, from $ 9 billion to $ 39 billion.
ASX Share Market Game is a platform for Australian school students and beginners to learn about stock trading. This game is a free service hosted on the ASX (Australian Securities Exchange) site. Every year more than 70,000 students enroll in the game. For the most part, this is an introduction to stock market investing. Students who have enrolled, are given $ 50,000 of virtual money and can buy and sell up to 20 times a day. The game lasts for 10 weeks. Many similar programs are found in secondary educational institutions around the world.
Investment strategy
There are many different approaches to investing. Many strategies can be classified as fundamental analysis or technical analysis. Fundamental analysis refers to the analysis of firms based on their financial statements found in the SEC archive, business trends, general economic conditions, etc. Technical analysis studies price action in the market through the use of graphs and quantitative techniques to try to estimate price trends regardless of corporate finance. prospects. One example of a technical strategy is the following Trending method, which is used by John W. Henry and Ed Seykota, which uses price patterns and is also rooted in risk control and diversification.
In addition, many choose to invest through the index method. In this method, a person holds a weighted or weighted portfolio consisting of all stock markets or some stock market segments (such as S & P 500 or Wilshire 5000). The main goal of this strategy is to maximize diversification, minimize taxes from over-the-counter trades, and drive general stock market trends (which, in the US, have an average of nearly 10% per year, plus annually, since World War II).
Responsible investment emphasizes and requires long-term horizon on the basis of fundamental analysis alone, avoiding the dangers in expected return of investment; Socially responsible investments are also recommended in all types of investments.
Taxation
According to many national or state laws, large amounts of fiscal obligations are taxed for capital gains. Taxes are charged by the state for transactions, dividends and capital gains in the stock market, especially in stock exchanges. This fiscal obligation varies from jurisdiction to jurisdiction. Some countries avoid weighing earnings on stock because profits are already taxed when corporate file returns, but double taxes are common at some level in many countries.
See also
- Crowdfunding Equity
- List of market open times
- List of stock exchanges
- List of stock market indices
- Financial market modeling and analysis
- Securities market participants (United States)
- Securities regulation in the United States
- Stock market bubble
- Stock market cycle
- The stock market data system
Note
References
Further reading
External links
- Stock exchange in Curlie (based on DMOZ)
- Stocks invest in Curlie (based on DMOZ)
Source of the article : Wikipedia
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