DEFINITION OF EQUITY MARKET
The market in which shares are traded ,either through exchanges or over the -counter- markets.also known as the stock market,it is one of the more vital areas of a market economy,
because it gives access to the companies to capital and investors a slice of ownership in a company with the potential to realize gains based on it's future performance.i will define all the terms in market like stock exchange
STOCK EXCHANGE
A stock exchange is a form of exchange which provides services for stock brokers and traders to buy or sell stocks, bonds ,and other securities .stock exchange also provides facilities for issue and redemption of securities and other financial instruments and capital events including the payment of income and dividends.
Securities traded on a stock exchange include stock issued by listed companies,unit trusts,derivatives,pooled investment products and bonds.stock exchanges often function as
''continuous action ''markets,with buyers and sellers consummating transactions at a central location ,such as floor of exchange.to be able to trade a security on a certain stock exchange,it must be listed there.usually there is a central location at least for record keeping,but trade is increasingly less linked to such a physical place as modern markets are electronic markets ,which gives them advantages of increased speed and cost of transactions .trade on a exchange is by members only. the initial public offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market .a stock exchange is often the most important markets of a stock market .supply and demand in stock markets are driven by various factors that,as in all free markets,affect the price of the stocks.we must see the price valuation .there is usually no compulsion to issue stock via stock exchange itself,nor must stock be subsequently traded on a exchange.such trading is said to be off exchange or over -the -counter.stock exchanges are part of global market for securities.here is a picture showing first stock exchange in Asia which is in bombay{mumbai}
In my next article i will explain how to get into stock market how much invest is usually needed
The market in which shares are traded ,either through exchanges or over the -counter- markets.also known as the stock market,it is one of the more vital areas of a market economy,
because it gives access to the companies to capital and investors a slice of ownership in a company with the potential to realize gains based on it's future performance.i will define all the terms in market like stock exchange
STOCK EXCHANGE
A stock exchange is a form of exchange which provides services for stock brokers and traders to buy or sell stocks, bonds ,and other securities .stock exchange also provides facilities for issue and redemption of securities and other financial instruments and capital events including the payment of income and dividends.
Securities traded on a stock exchange include stock issued by listed companies,unit trusts,derivatives,pooled investment products and bonds.stock exchanges often function as ''continuous action ''markets,with buyers and sellers consummating transactions at a central location ,such as floor of exchange.to be able to trade a security on a certain stock exchange,it must be listed there.usually there is a central location at least for record keeping,but trade is increasingly less linked to such a physical place as modern markets are electronic markets ,which gives them advantages of increased speed and cost of transactions .trade on a exchange is by members only. the initial public offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market .a stock exchange is often the most important markets of a stock market .supply and demand in stock markets are driven by various factors that,as in all free markets,affect the price of the stocks.we must see the price valuation .there is usually no compulsion to issue stock via stock exchange itself,nor must stock be subsequently traded on a exchange.such trading is said to be off exchange or over -the -counter.stock exchanges are part of global market for securities.here is a picture showing first stock exchange in Asia which is in bombay{mumbai}
In my next article i will explain how to get into stock market how much invest is usually needed
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