All you need to know about the stock exchange or securities market where you can buy and sell shares
If you want to take a step into the world of securities and have good money, but don’t know how, then in the article you will learn what the stock market is, what types of trading are, and what necessary knowledge is needed to become a trader.
A modern economy can no longer exist without a stock exchange. For the successful development of the company, it needs investments, and thanks to the stock market, investors can choose and channel funds to the most promising ones. How to understand the system to understand all the securities and stocks to make money on it?
So what is the stock exchange and why are millions of people watching their recession and growth and how can you make money on it?
What is a stock exchange?
A stock exchange is a market in which sales and purchases of securities of well-known companies are made. The market is quite volatile and unstable, therefore, participants actively monitor stocks, and large companies are constantly improving their product, which takes it to a new level and attracts traders
People thought about the value of the earnings method back in 1602. By creating the first stock exchange in Amsterdam, where they began to sell shares of the United East India Company. In the Amsterdam Stock Exchange, the emergence of operations with securities and business relations with countries took place.
Times are changing, and increasingly, all trades take place electronically and are gaining mass distribution.
The most popular stock exchanges in the world
World stock exchanges
There are stock exchanges in each country, below you will see a list of the most successful stock exchanges in the world:
1. American stock exchanges:
NYSE – on the purchase and sale of securities. To get into it is considered aerobatics, but everything is real and, perhaps, you will be able to be lucky;
NASDAQ – the main occupation of the company is the automation of quotes, which contain hundreds of shares of the largest technology companies;
AMEX is a huge stock exchange with a long history. AMEX first introduced a system of electronic transactions through wireless terminals. In 1998, the exchange was bought by the no less famous NASDAQ exchange. With great efforts in 2004, they managed to buy the site back, but later merged with the NYSE. Since 2012, the company is called NYSE MKT LLC.
2. Tokyo Stock Exchange
It was founded in 1878. 80% of the stock capital of the whole country is assigned to this company, which indicates its fairly high status.
3. The London Stock Exchange
It began its activity in 1570, but began its full activity in 1801. The total bid price exceeds $ 2 trillion, imagine the scale of the joint-stock company.
4. Shanghai Exchange
China has always been a world leader, and here, too, does not lag behind. Since 2014, all major investors can conduct the desired bidding in this market.
5. Toronto Stock Exchange
The Canadian Huge Exchange, opened in 1852, where thousands of companies are willing to offer shares. The total capital is more than a trillion dollars.
6. Russian stock exchanges
There are also large exchanges in the CIS, one of which is:
PFTS Stock Exchange – Securities Exchange of Ukraine. considered the largest organizer of securities and the main source of information on the Ukrainian stock market for international investors;
Moscow Interbank Currency Exchange (MICEX). The largest exchange in Russia. The stock exchange holds about 300 billion dollars of capital;
Belarusian Currency and Stock Exchange – founded in 1998 and is the main one in the Republic of Belarus. There are tenders in various industries responsible for the country’s economy;
Russian trading system (RTS). St. Petersburg Currency Exchange (SPEX). a large exchange that trades in its city and is engaged in boosting the economy.
What is the difference between the currency exchange and Forex (Forex)?
Difference between Forex and Stock Exchange
Some mistakenly believe that the stock and currency exchanges are one and the same. In fact, these are completely different societies engaged in different activities.
Currency exchange is a market where the purchase and sale of monetary units of various states takes place. There is always work in this market, there are dealers in almost all time zones who want to quote the currency.
But the Forex market is an over-the-counter international market, not tied to a specific venue, whose participants can make transactions from anywhere in the world.
Trading currencies and stocks differs in sales methods, types and the product itself. The assumption that these are similar exchanges is erroneous.
Who is a broker and trader?
Deciding to engage in stock activities, you need to understand who you need to work closely with and be on good terms.
Broker – carries out transactions on the purchase and sale on behalf of the trader, as he has special permission for this. The broker’s main goal is to find the most suitable company with profitable stocks for the trader.
A trader is most often an individual who uses his own capital for trading and earns from the difference in prices when buying and selling assets.
There is close contact between the trader and the broker, their earnings directly depend on each other.