Stock market for beginners

July 21, 2010 admin Stock Market Articles

Stock market

What is the stock market? Why is it important for the economy? Every day we hear through all channels of media, whether print, broadcast (TV, radio) and the Web. You see, the stock market, where securities are traded – the buying and selling shares. These values are common stock and preferred stock and bonds, which classified the property of a public corporation.

Now we will limit our discussion to the immediate boundaries of the definition and relevant issues therein. You may see the bag you’ll be amazed that there are more than 10,000 topics and we will lose the focus of our objective is to give a simple introduction to the stock market.

Keep analyzing the market. The stock market is called the stock market or the stock market. I’m pretty sure you’ve heard of the New York Stock Exchange, the London Stock Exchange, Hong Kong Stock Exchange and the Tokyo Stock Exchange. And there are hundreds of exchanges around the world who do the same in each case that (again) the sale of securities.

Do you have an idea of the total market capitalization of the exchange together? I’d say about $ 36B, $ 36,000,000,000 is the value of all public corporations worldwide. What I mean by that? For example, we have a company listed on the Stock Exchange, Fluor Corp. (NYSE: FLR), an American construction company listed on the New York Stock Exchange, has a total market capital of $ 9B. We figure by multiplying the current price of $ 50, the number of shares outstanding, which is 181st 5 million. This is the idea of market capitalization.

Who participates and who does what do? Remember that the stock is trading in shares, now the question of who are the personalities involved in the market. Runners are those who facilitated the purchase and sale of securities. Buyers are willing to invest to any person in that instrument, and vendors who sell the property that the number of shares.

How is this done? Suppose you are the potential buyers have to find an agent to execute a purchase order. Law provides that brokers are only allowed to do so. The next step is the passage of a purchase order, which is rather the number of shares, and price. If you agree to the sellers the price will have a trade is consummated.

Why companies sell their shares on the stock? Most of these companies need more capital for expansion and retire some of its other long-term debt. The company also improved as a public company. For a publicly traded company, they leave public investment in their business as a new owner and the business of the company to participate.

Stock market for beginners

36b, American Construction Company, Broadcast Tv, Buying And Selling Shares, Common Stock,