What is the stock market


  • 1 The stock market
  • 2 The mechanism of the stock market operation
    • 2.1 Primary market
    • 2.2 Secondary market
  • 3 References

Stock market

Is the stock market financial institution or organization where trading stocks, bonds, futures and other securities, and is done between buyers and sellers during limited hours on working days, and impose the stock market a number of rules and regulations on companies and intermediaries, and called the name of "listed company" on The company whose securities are traded on the stock exchange, [1] It is worth noting that the process of trading securities was carried out in the past on the floor of trading on the stock exchange, through some verbal operations and orders, but for the time being, securities are traded via the Internet or the Phone, and the Amsterdam Stock Exchange is considered the first exchange in the world, as it was opened in 1603 AD, and the New York Stock Exchange, the London Stock Exchange and the Tokyo Stock Exchange, respectively, are the three largest exchanges in the world. [2]

The mechanism of the stock market operation

The financial markets provide a safe environment for the public in the market, with the aim of facilitating the sale or purchase of securities of various forms, as the stock exchange acts as a platform to meet sellers and buyers in accordance with specific rules, as these markets are divided according to the regulator, into a primary and secondary market, as follows: [3]

Primary market

Companies in the primary stock market are allowed to issue and sell their shares to the general public for the first time, and this is done through the initial public offering, as it is the first activity that companies undertake, as it contributes to raising funds from investors by selling them shares, for example if a company wants to By offering 5 million shares of its total shares and selling them on the stock exchange by offering it for public subscription at a price of 10 dollars per share, it will achieve a capital equivalent to 50 million dollars. This is indicated by the investors obtaining periodic profits when they keep the shares, and they can sell them through the stock exchange. [3]

Secondary market

The stock market represents a platform that facilitates the process of trading the shares and bonds listed therein after the initial subscription process, where you get fees for every trading process that occurs through their systems, and it is indicated that most financial markets around the world operate electronically, so they search and match prices between sellers And buyers, as the stock exchange bears responsibility for ensuring the transparency of prices and financial transactions for all trading operations that take place through it, and this is done through the display of news bulletins, announcements, or financial reports on the companies listed there regularly, and works to publish these reports Official sites across the Internet companies. [3]

Post a Comment