By definition, the stock market is an organised market for the purchase and sale of securities such as stocks or bonds. One may ask the question, what is a security? A security is basically a document indicating ownership or creditorship. So in other words, proof that we actually have a share in something, be it gold, oil, sugar, pig bellies, etc. Governments, companies and financial institutions often use securities to raise money. In the case of stocks, this is a security issued in the form of equity ownership. Stocks are traded in organised exchanges such as the New Stock Exchange, London Stock Exchange, Tokyo Stock Exchange, Jamaica Stock Exchange, etc. Each country uses it own exchange in order to trade stocks affiliated with that country.
The Stock Market has evolved over time with the age of technology. In the past stock were traded only on the trading floors, but now persons can set up an online account and trade from the comfort of their homes. In the coming articles we will look at the ease of trading these markets and the factors that influence market conditions.
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